12% default on Credit Card – HDFC Study

HDFC Bank commissioned a study to find the defaulters on its Credit Cards and the rate is at a whopping 12%. It is 4% on its personal loans segment.

So why so many defaulters ? Is it because the bank pampered and gave away credit cards to delinquent customers or is it because HDFC Bank is involved in malpractices such as fake billing and hidden charges to its customers ? Personally we feel that it is the later case, have a look at the number of fraud cases registered against HDFC bank here; This problem is with the bank itself. They don’t explain the terms and conditions clearly to customers and have very ill-informed staff to handle customer queries and the problem starts mounting.

Now HDFC bank has hired1,200 recovery agents a.k.a Local Goondas to recover their money from innocent consumer. The situation is nothing different than 1990s in Mumbai when underworld ripped away money from profiled citizens.

Reference: PTI, Aug-13th

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