Sir, i have a standard chartered credit card. My credit limit is Rs.10000. I have been charged for Overlimit fee. I asked why they charge this fee as i was unaware of this kind of fee. I sent an e-mail on 13th November to them requesting explanation.
They said I used the card for more than Rs.10000 so we charge overlimit fee. I told them when they have fixed a credit limit for me, It should not allow me to spend more. It should have declined the transaction.
But they sent a reply stating "Please be informed that the maximum threshold credit limit for the card usage will be around 5% to 10% beyond the assigned credit limit. We are sure that you will appreciate our stance as this precaution is sought in the best interest to avoid any possible inconvenience at the time of transaction.
We wish to clarify that if the outstanding amount in your card account exceeds the assigned credit limit, an over limit fee of Rs.500.00 or 2.5% of the outstanding, whichever is higher, will be debited to your card account. We regret our inability to reverse the same."
I have been charged Rs.500+61.80 on 30/10/2013 as B2OVER LIMIT FEE & B2SERVICE TAX & CESS. Again on
12/11/2013 they charged the same. So totally Rs1123.60.
As far as I know when the credit limit exceeds it should decline the payment rather than allowing me to do the transaction and then asking me to pay penalty is not acceptable.
I kindly request your views and solution on this.
Thanking You,
Balasundaram.R
