Customers who have fallen into the credit card death trap

‘Plastic Money’ credit card is a name of terror to the people of the country due to the bankrupt attitude of the banks. Users in crisis are trapped in the sweet language of the sales representatives of the banks. They have been the victims of extreme deception in glamorous advertisements year after year. Banks have already ensnared more than 600,000 people in the so-called ‘credit card’ debt trap.Every consumer has a tale of how they were duped. As a result, whomever is able is submitting the card along with the bank’s money. According to the central bank, 14,000 to 15,000 customers submit cards to banks every month, indicating that they are no longer purchasing new cards.

The majority of credit card users claimed that the bank’s marketing professionals and their sweet-spoken campaign to become a credit card customer motivated them. Speaking with customers, it was discovered that they had forgotten about the bank’s marketing strategy and had taken the card. By imposing ‘conditions,’ the bank is committing heinous fraud on them.Banks claim to take interest rates ranging from 18 to 36 percent, but in reality, they take rates ranging from 30 to 144 percent. And none of the people’s representatives can protect themselves from the common people’s lie. Influential people are able to get rid of it, while ordinary people are unable to do so. Those who are aware of the situation are approaching Bangladesh Bank. The others are caught in a financial trap.

Year after year, the banks amass a mountain of profit by slashing the clients’ pockets. Customers with credit cards are subject to interest rates. These card distributors acted in the same way that usurers used to take advantage of people’s illiteracy and lack of education to defraud them. Today’s interest on the loan becomes the next day’s interest on the original loan, and new interest is imposed on it. As a result, the customer’s accounts will never be reconciled.

Motijheel was employed by a private firm. Shafiq Gazi, a United Commercial Bank credit card customer. From 2010 to 2012, he claims that marketing people from Standard Chartered, Eastern, BRAC, and UCB called him three to four times and pushed him to get a credit card in various ways. However, I refuse to accept the card because I am aware of many people’s painful experiences.

“After much trial and error, the UCB salesperson was able to persuade me that having a credit card has numerous advantages. It’s no problem. I eventually gave in to their demands. I was unable to provide all of the bank’s needed documentation. The bank, however, was instructed to collect the card after 15 days.

He explained, “The bank did not educate me any regulations on how to use the card.” He merely mentioned a monthly interest rate of 2.5 percent. So I used the card to make a cash withdrawal of Rs 40,000 from the booth. The bank requested Rs 55,000 from me a month later. When I went to the bank to inquire about the situation, he informed me that withdrawals of cash were subject to a monthly interest rate of 12%. That’s a yearly increase of 144 percent.

“By handing me a card, they forced me into danger.” So far, I’ve paid the bank roughly 90 thousand rupees against a balance of 40 thousand rupees. “The bank continues to seek Rs 10,000 from me.”
According to the data, Bangladeshi credit card issuing banks’ ‘public’ interest rates are substantially higher than those in surrounding nations. It has 20 to 30 different types of ‘hidden charges.’ The total interest is between 30 and 150 percent. The average rate of interest is 40%.

According to Bangladesh Bank, credit cards are available from 25 private commercial banks. Standard Chartered Bank, HSBC, and Bank Al Falahar are among the nine foreign banks. These banks’ interest rates range from 18 to 36 percent. The majority of banks, on the other hand, charge a 30% interest rate.

Interest rates are 17 percent at Commerce, Jamuna, and Dutch-Bangla Bank. HSBC’s interest rate is 19.50 percent. The interest rate of Bank Al Falah is between 21 and 24 percent. Janata, Dhaka, IFIC, Standard, and Southeast Bank all have 24 percent interest rates. Apart from that, the National Bank’s interest rate is 26 percent, BRAC Bank’s is 26 to 30 percent, NRB Bank’s is 27 percent, and One Bank’s is 26.50 to 31.50 percent.

Thirteen banks are demanding 30% interest. AB, Bank Asia, Eastern (EBL), Exim, Midland, Premier, Mercantile, Mutual Trust, NCC, Farmers, South Bengal, Shahjalal, and Trust Bank are among the banks involved. Standard Chartered, on the other hand, charges 30 to 33 percent interest. The City Bank has a 36 percent interest rate.

Banks in India charge 18 to 30 percent per year, Myanmar banks 12.64 to 13%, Sri Lankan banks 19.6 to 24%, and Chinese banks 16.55 to 25.6 percent per year. In the case of cash withdrawals, these countries’ banks charge a monthly interest rate of 3.5 percent, while Bangladeshi banks charge a monthly interest rate of 12 percent.

“How could the authorities allow them to take so much interest?” raged Md. Ali Haider, a credit card user. They also defraud the system by taking 35 to 40% interest. Credit cards are just a ruse.

Last month, Mridul Sarkar, a private bank credit card holder, surrendered his card to the bank. He claims that if you go over the one-paisa limit, you will be charged Rs 400 to Rs 450 as a ‘over limit cost,’ and that even if it is a last-minute holiday, numerous hidden penalties such as a ‘late payment fee,’ 35 to 40% interest, and other death traps would be applied. Despite the fact that the due date is a holiday, the bill cannot be paid on the next business day without incurring a late fee. The most serious type of fraud. With some difficulty, I was able to get out of it.

“Hidden costs are so exorbitant that they never reveal it,” Raju Ahmed, a credit card client at Eastern Bank, said. They hear you say twelve of your balance when you phone their helpline. Wait a minute, they’re busy when you get to the queue doing a lot of stuff.

In our country, a credit card is like a shell saw, according to another customer named Mahmud Farooq. It appears and vanishes. The card comes with an annual fee from the bank. It also takes 2.5 percent from business owners. When a consumer purchases a goods, some retailers add a surcharge to the price. “Banks should take advantage of the popularity of credit cards to reduce the risk of carrying cash.” It’s a death trap, he continued, because it’s a modern digital means of exploitation.

On the condition of anonymity, a BRAC Bank cardholder revealed that when he went to get a loan from BRAC Bank, he took out a credit card. Then he told me about the daily interest of 60 paisas. However, it is much more in actuality.
“I am depositing Rs. 42,000 in four months by purchasing Rs. 75,000,” he explained. I will still pay them 79 thousand rupees. Recognize the situation. I had no choice except to halt the payment. If you pay by phone, your interest rate will not rise. My debt is locked there because I have a new employment.”

Selim, a Standard Chartered Bank customer, said he spent Tk 50,000 and paid Tk 72,000 on his card in 2011. The bank now claims to have received 35 thousand rupees. They present various forms of vouchers if they want to know how they got so much money. Even after collecting the money, the bank engages employees to collect the money through agents again to collect the extra money. These extortionists use terror to extract money.

Aside from charging high interest rates, banks have also been accused of money laundering. To pay the bill in the bank, those who use foreign currency via credit card must pay one and a half to two rupees more than the market rate of dollar. Each bank is required to pay at a different rate.

Sohail Mahmood, a private firm official, uses credit cards from numerous institutions. He claimed that when using credit cards outside the country, banks had to pay in dollars. For dollars, each bank has a different rate. When I went to pay for my Citibank card a few days ago, he asked two rupees more than the market rate. When he went to deposit the money in the Eastern Bank the next day, he asked an additional 1 taka 70 paisa. So, how many times will the banks transact business with each other? Will you charge 30 to 40 percent interest and fool the buyer with a dollar rate? Bangladesh Bank should investigate the situation.If a consumer demands a higher rate than the floating rate, the customer must file a complaint with Bangladesh Bank and the relevant bank. He did say, though, that this was not supposed to happen.

The majority of the time, it’s due to math errors, according to AKM Amjad Hossain, General Manager, Financial Integrity and Customer Services, Bangladesh Bank. When we notify the relevant bank of the complaint, they promptly resolve the issue for the customer. We are investigating and taking action against the bank if we believe it has made a willful mistake.

“First and foremost, the buyer must exercise caution,” he stated. I need to be familiar with the product I’m utilizing. Otherwise, someone will profit from my stupidity. It should not be utilized unless you are familiar with the subject.
Bangladesh, he said, could not impose any interest rate or currency exchange rate caps because it was a signatory to the FTA. However, banks must act in their own best interests.

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