Karnataka - Mysore

Panel verdict brings relief to credit card holders

MYSORE: For the much harried credit card holders, who feel the pinch of high interest rate charged by the issuing authorities, here is some solace. For, the National Consumer Commission has restrained credit card companies from charging higher than 30 per cent annual interest.

P.M. Bhat, a consumer activist and member of the Mysore Grahakara Parishat, has drawn attention to the recent ruling of the commission and said the latter also ordered that penal interest can be charged only once for default and shall not be capitalised.

He said this decision will affect credit card holders all over the country.

The commission has also decreed that interest on credit card dues can be charged only on an annual basis and not on monthly basis.

The complaint against excessive interest charged by credit companies was filed by two NGOs from Gujarat and a consumer.

Mr. Bhat said notices were issued to the Reserve Bank of India (RBI) and all the major credit card companies and the RBI submitted that it had issued several notices to banks not to charge excessive interest, but admitted that it had not set any specific limit on the interest that can be charged.

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