Fraudulent & Unethical Policies of Axis Bank in Billing of Credit Cards

My credit card bill to be paid by the 10th of Nov was of Rs. 79339.76/-. The due date was Nov 10, 2019, and it was generated on Oct 20th. So, I thought I should pay some of it now... and then I paid Rs. 40,000/- on Oct 26 and then I paid Rs. 29,339/- on Nov 7 and forgot to pay remaining Rs. 10,000/- on the due date, I later paid that too by crediting my account by paying Rs. 14400/- on Nov 15. So, I've paid more than I should have. However, the Axis Bank debited my account by Rs. 4628/- as interest on non-payment of the bill on time... WHAT?? It was shocking and absurd? Later, I came to know that they charge 3.4% p.m. as interest on unpaid amount every time some amount of bill paid... But it is completely unfair because I have paid it before due date and remaining amount on the due date was only 10000/- and then I credited my credit card with remaining amount plus some amount also but they still debited the interest for the whole unpaid amount, while on the due date the remaining amount was only 10000/- and I think should've only deducted the tax on this amount which would have been only Rs. 340/- whereas they deducted for the whole amount that would have been only Rs. 2697/- but they deducted even more amount and there's no explanation for that.

I even called the customer care (which is now paid btw and you may have to wait and waste a lot of time) and the customer care guy understood my issue and said what you're saying is fair we'll refund the amount in 5 days, but they didn't. I called again and this time they said their team will call me in 24-48 Hrs but they didn't and then I chatted on their website. The conversation is below which I saved as pdf from their chat menu. However, for ease of access, I'm pasting the whole conversation below. And decide for yourself, how unfair their policies are. Even this support lady understood my issue but I guess axis bank has a policy of no refund. By their logic, If I had paid my amount in even more segments, my interest they would've deducted may even cross my bill amount.

What I learned from this is that I shouldn't use a single credit card for all transactions and look for in statement if the bank is deducting the unfair interest. I'm not sure if other banks also have such policies or not? If not, I would use that card and not recommend using Axis Bank Credit Card. Their support staff picks call quickly and reaching to them and chatting with them is good though, but what's the use of that if they can't support the customer in their genuine concern.

And if somebody is a lawyer, please file a case against such unfair practices of these banks.

Chat Transcript of Conversation with Axis Bank Support team member Anitha:

Note: Their chat system is buggy, as soon as I used punctuation mark it was closing on me so I had to form my sentences without it. However, It's still legible and understandable easily.

Chat Transcript

ANITHA

Greetings for the day! Welcome to the Axis Bank Credit Card chat support. I am Anitha, how may I assist you?

Me

even though i have paid most of the amount bill before due date

Me

I was charged for the non payment

ANITHA

Let me check.

ANITHA

Debit Interest charges are calculated due to partial payments made or non-receipt of payments towards your Credit Card.

but i have paid about 90 percent of the amount before due date

I should not be charged for the whole amount of bill

ANITHA

If the full payment not received then the debit interest charges will be charged.

The remaining amount was only 10000

Me

you have deducted interest for 79000

ANITHA

The interest rate of 3.40 % p.m is applicable on your credit card whenever there is a part payment made by you for your purchases.

Me

so i should never pay in advance

at the time of due date I had very less amount remaining

Me

ask any person with common sense that will tell that it is unfair

ANITHA

I understand your concern.

Me

What should I do

I am not willing to pay this unfair interest on the bill

ANITHA

I would like to inform you that, interest is calculated basis four rules which are as follows:

Me

when i paid almost all of it

ANITHA

As per the bank policy if you pay partial amount also the debit interest will charge.

ANITHA

1) From transaction date to statement date (on transaction amount) 2) From Statement date till payment date (on outstanding balance) 3) From Payment date till next statement date (on balance amount) 4) From transaction date till the next statement date (fresh transaction)

Me

So what did I do wrong

I should not have done the second payment

Me

So according to you if i pay say 99999 from a bill of 100000

you will charge me for whole 100000

ANITHA

If you make the full payment then there will not be any financial charges will charge.

Me

when the remaining amount is 1 rs

That is utterly wrong and these rules of the bank are wrong as well

ANITHA

As per the bank policy if you pay partial amount also the debit interest will charge.

Me

Me Mam I would like to inform you that this conversation may go in blog and people will decide if the axis bank policies are wrong or not

ANITHA

I understand your concern.

Me

Please look at my previous history regarding my payments of the credit card bills

I have always paid my bills on time and have been a good customer of axis bank

ANITHA

As per the statement dated 20-10-2019 the total amount due is Rs. 79339.76/-, we received the partial payment of Rs. 69339/-.

Me

yeah

that is what i said 10000 was only remaining amount I can pay for tax generated on 10000

not whole amount

ANITHA

We are sorry to inform you that we are unable to reverse the charges.

Me

You are letting down your good customers

I was earlier informed by customer care on phone that the charges will be reversed in 5 days and I waited for 5 days

I called several times on customer care

ANITHA

Reversal is subject to bank approval.

Me

Are you not representative of the bank

ANITHA

Let me check the previous conversation.

ANITHA

Thank you.

Me

have you checked

I called several times

ANITHA

I have checked in our records regarding the reversal.

ANITHA

As per the bank policy the debit interest has been charged towards total outstanding balance and for purchases.

ANITHA

We are sorry to inform you that we are unable to reverse the debit interest charges reversal.

Me

What was the outstanding balance 79000 when I paid 69000

Does bank knows its mathematics or not

How can anyone trust it

ANITHA

The interest rate of 3.40 % p.m is applicable on your credit card whenever there is a part payment made by you for your purchases.

Me

Whatever that mumbo jumbo the bank is doing

it is clearly dumb unfair and utterly wrong practice and implemented by incompetant software engineers

that is very apparent

ANITHA

Kindly cooperate with us.

Me

I am not even able to use punctuations in this chat window also

on my imac

ANITHA

I apologize for the inconvenience caused to you.

Me here... so it is indeed a work of imcompetent software engineers and i have to bear the consequences of it

ANITHA

I do understand, but as per the bank's policy we are unable to reverse the charges.

Me

Any human being with common sense will agree that it is unfair

and even you do

Thank you for understanding that but It is me who is charged for 4000 rupees out of thin air

and no major fault of mine

ANITHA

We are really sorry that we are unable to reverse the charges.

Me

Can you do anything

Me send this issue to someone who can handle these issues so that others do not suffer the same issues

Me

I think many are already suffering without knowing

ANITHA

I will highlight the issue internally. But we can not confirm the reversal will be done.

ANITHA

However, reversal is subject to bank approval.

Me Please log my complaint and do the reversal as I will write a blog post about it soon and will try to aware the public of this issue

ANITHA

I will highlight this issue. Our team will provide you the update on this.

Me

Thank you mam

ANITHA

Is there anything else I could assist you regarding your Credit Card?

Me

No... I would order credit for some other bank and split my transactions if possible

ANITHA

I apologize for the inconvenience caused.

Me Thank you for your understanding... I do hope that you take some action and try to help out a loyal

customer here

ANITHA

Sure. I will highlight the issue internally. But we can not confirm the reversal will be done. Axis Bank Support

Chat session will be closed soon due to inactivity of chat participants. ANITHA

Kindly respond, else the chat will get disconnected due to inactivity.

How much time does it take the bank to respond

for bank to take action regarding this issue

ANITHA

I request you to wait for 03 working days you will get the update.

Me

If any and what should i do here meanwhile

Ok

ANITHA

Is there anything else I could assist you regarding your Credit Card?

Me

Me

No mam

ANITHA

It was a pleasure interacting with you. Thank you for contacting the Axis Bank Credit Card chat support.

Me

same here... thanks

ANITHA

Thank you for choosing the Axis Bank Credit Card.

The chat pdf is available on this dropbox link here: Axis Bank Support: Chat Transcript

If they say that every other bank is also doing this practice then I'll have to say that just because everyone else also doing it doesn't justify it. It's unethical, unfair and utterly absurd practice.

Please do share your experiences and views in the comment section below.
Thanks for reading...