[Resolved]  HSBC — credit cards, harassment, overcharge

What I observed is that these so called foreighn banks are looting Indians' money by following unethical means. They are charging 43 to 45 % interest per annum.They say it is 3.5% permonth. What they do is they calculate interest in the name of finance charges on daily balance basis and add to the existing Principal next day they charge 3.5% including previous days finance charge which tantamounts every day compound interest. They say that they recover 5% of the total outstanding balance. Actually it is not correct, this 5% recovery includes finance charges service tax and penalty for late payment. Thus the principal recovered at 5% is not correct. This way they will get more finance charges as the principal recovered is very less utstanding is more. They add to the principal the finance charge which will be the Principal for next day. They never say all thses facts and we can say that all these are hidden charges.In the recently passed bill by US Government on credit cards, the bank shoild specifically tell the customer that the amount outstanding will be recovered by a particular date.No such rules in India.(Mouliswar)