[Resolved] Citibank India — Service tax fraud on credit card loan

2 Reviews
Bangalore South, Karnataka, India
 lokesh hk
I have taken loan on my Citibank credit card on July-2016.This loan taken over phone and without any paper documentation but voice recording as an agreement. At the time of taking loan I asked the executive minimum three times regarding service tax and she said there is no service tax at all. But starting from November-2016 they suddenly started charging service tax on loan EMI’s which in turn increases the EMI Amount, which is additional charge on customer. I called the customer care and they told me that the RBI has directed with notification to the bank to charge the customer service tax. When I asked them to show the notification they are not providing tithe service tax concept is there from long back while other banks have charging customers Service tax with prior informing them before providing the loan. Here Citibank people are telling lies because they didn't follow the law properly in order to sell their product, ones RBI tightened the rule they passed the penalty to customers. So here for CITI bank mistake customers like me are paying the penalty in the form of service tax. And also senior executives of Citibank (third class idiots) who are responsible for this mess are hiding but their level 1 executives (slaves of senior executives) are facing the wrath of the customers. I asked many times to transfer the call to senior executive but that lady didn’t do instead she placed the call on hold and gone to the shameless idiot (refer as senior executive/manager) and back with same nonsense blabbering. I asked for 3 options either waive of pre closure penalty or waive of service tax or reduce interest rate to adjust for service tax. The reply I got was we are unable to do any of the above. After many calls to customer care I find nothing going to work other than to stop making further payments towards loan EMI and let’s have confrontation. Today I called them and informed that I am not making further payments till my concern is comprehensively resolved as a result of this I am not responsible for any late payment charges or interest charges. I request all peoples who are facing the problem like me should protest this and stand up to our rights until senior executive’s staff of Citibank who are responsible for this mess comes out .
Complaint marked as Resolved Jan 9, 2017
Expected condition is met.

Complaint Status

[Jan 04, 2017] Citibank customer support has been notified about the posted complaint.
Updated by lokesh hk, Jan 09, 2017
After the week long fight, they agreed to waive of the 3% of pre-closure penalty.Thanks for the citibank officer who approved the request.
Complaint comments  1 Comment     Updated: Share0Tweet0


I am also facing the same issue and I am staying abroad. When I visit India I personally visit Hyderabad Guchbowli branch where there were no customer service center executive. They asked me to contact through the toll free number. When I contacted I have explained 2 concerns.
1) EMI of the Flipkart 2) EMI of my credit card loan of 5 lakhs.
Every month I noticed there were 1200 rupees as interest which is again 14% ST, 0.5% SBC, 0.5 % KKC. The CC person told me the same this is applicable starting from November 2016 and we can't help anymore sir. I asked to waive the 3% preclousre charge where they refused and unfortunately I don't have much time to visit personally main branch or to make further discussions like you.
Even today I am paying 747.55 as (ST (14%), SBC(0.5%), KKC (0.5%) ) for the EMI of 25019 INR. I don't know how this amount has been calculated. I request Citibank to provide flexibility to pay the amount without pre closure charges for such EMI's which are not logic to pay every month. What we are benifitting by then with the credit card and the EMI flexiblities. I am recommending most of my friends not to use anymore credit cards for EMI purpose and not to take any loans on the Credit Cards. Its time to through out CC's.
Dear Citibank, can I avail the pre closure facility without any preclousre charges?

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    Citibank India - Service tax fraud on credit card loan