Credit Card Warnings
September 4, 2009 by Medan Indonesia
Filed under Living
Warning to Credit Card holders in Indonesia
Credit cards… there is no argue over the convenience it provides to all of us… over the last few years… where ever we go… be it the shopping malls, supermarkets, mailbox, telephone calls, airports, hospitals… in fact practically in all public places.. we will find many freelance marketing personnels from all sort of banks or card centers…. approaching and offer you to apply their credit card with first year complimentary annual fees….
Often, these promoters will push the cards to you and suggested that you can cancel the cards anytime, since its free annual fee for the first year, why not just apply for it for the latest promotions and discounts.
Many people will simply take up the Free annual fee offer since we have nothing to lose, even though we keep using our current cards due to the accumulated reward points and promotions. We keep the new cards in our pockets, just in case there is any special promotions organized by the credit card companies ( we know there are alot of these special promotions going on in Medan and nationwide in Indonesia)
The problem is, you will not receive any billing statements if you do not use the credit cards until… one year later… a statement will be issued with the cost of the annual fees charged to your unused card. If you have not been using the card, you would probably cancel it as you wouldnt want to pay the Rp 200.000++ (gold card) Rp700.000+++ (platinum card) annual fee for a card that you will not to be using…
Usually, most card centers will allow you to cancel the card over the phone and waive the annual fee since you are canceling the card. Standard Chartered card center will even pro-rate the annual fee and charge you a month, if you have accidentally used it for one month and realized about the new chargeable annual fee.
For those that have been using their cards with a reasonable amount, some card centers such as HSBC, Citibank Cards, BII, Danamon or Amex would probably:
- offer you another one year free / waive your annual fee,
- offer you to redeem your reward points (if you have some) to cover the cost of your annual fee (UOB Buana),
- or even request you to use X amount (BII cards) within 3 months for another year of free annual fee.
If you do not choose to take up these options, you should be able to cancel your cards with the above mentioned card centers over the phone, since you have not used the card, or is not planning to keep your card for the following year.
BCA Credit Cards Poor System
However, this is not the case with BCA ‘Bank Central Asia’ cards and ABN Amro (not active now) cards. Once they have printed your statement with the chargeable annual fee for the following year. You will not be able to cancel your cards and request to waive the charges.
Their system is very rigid, even if you do not use their cards and request to cancel, they will not allow you to cancel your cards over the phone as with other credit cards call centers do. BCA will demand payment of the annual fee (which mind you, is for the following year that you have not used) plus any late charges ( finance charges ) before you are allowed to request to cancel your card and even that, you will have to visit their nearest branch!
If you refuse to pay the annual fee, late charges will continue to pile up until you are being blacklisted by their system. The process of cancellation will only be carried out after you pay the annual fee. Having to go down to the local branch is troublesome enough, worse is, BCA does not guarantee your application for cancellation and refund of the annual fee charged and paid will be approve. The branch manager or card centers have no authority to approve on the spot. Most card holders will be furious by now and will simply not bother with the process, but read on…
With BCA being a large established commercial banks with many advance technological banking facilities such as internet banking, mobile banking and lots of ATM machines around Indonesia, it really does need to improve their credit card system.Their system is much too rigid compared to other credit card companies in Indonesia. Especially the authority of card cancellation and automated annual fee charges which cannot be reversed/waived over the phone on cancellation or even over the counter.
Auto renewing cards and charging annual fees to credit card holders for the following year of usage can be a convenient and definitely profitable system for the card issuer but they should also consider the rights of the cardholders and allow them easy process of cancellation. Especially when all other banks / credit card issuers are able to provide such facility for their card holders, why can’t BCA?
Becareful of Blacklisted
And do be careful about BCA policies as they will truly blacklist your account and we have been warned by other credit cardholders of such experience and they have difficulty applying for other credit cards due to being blacklisted by BCA from the exact condition we explained above.
“Charged annual fee for cards they do not use, cannot cancel and refuse to pay the charged annual fee and late charges”
Most people who are being faced with the condition above, will simply refuse to be taken advantage off by BCA poor rigid system and will not pay the card’s following years annual fee which they have not used and the result is that they have been blacklisted nationwide for such matter.
If you are faced with the same situation, do stay calm and pay off the card, request for a refund afterward and pray for the approval, if not, you will just have to forgo with the charges and learn the lesson of canceling the card before it expired and/or not applying for BCA cards ever again.
Do you think it is right for credit card companies to automatically charge you the following year’s annual fee and do not allow you to cancel it?
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Hooo Hooo…..I am crying….gold card,silvercard,platinum card…Safer not to hold any card.If really need one because of convenience then limit yourself to one or two.During promotion,they smile at you and try ways to convince you to have one.
You will be spending future money and it will snowball with high interest and late payment charges if you cannot pay in time.They are not going to smile to you if you have difficulty paying them.
Many people goes bankrupt because of credit cards.
And if your card is stolen or use by someone ……..
Of course it is not fair not to allow you to cancel your card.
Dun laugh at me becos I am a victim oversea.The little cash that I save monthly so that I can go Medan goes into paying up my credit card…that is why I cannot afford to go Medan for a long long time…….hoohoo….
So,think carefully before you sign on the dotted line if you have problem controlling your spending…….