A Proper user of Credit Card does not let credit out of control, by never exceeding spending limit and pays back to the bank the full monthly amount. There are three types of credit cards in the world market Visa, Master Card, which are important players and are, issued by participant banks, while Amex is distributed through the American Express Bank only. Of these, Visa is the biggest and, along with Master Card dominates the market. American Express issues its own cards, the other two issued by hundreds of bans and agencies.

Credit Cards and its Charges:

While dealing with credit cards, the main things to be watch out for are the fees that you need to pay and the interest that is charged in case you overdraw. There is normally an initial fee and an annul fee. Some of the credit card issuing banks offers credit cards without initial fee or annual fee.

The interesting point is that the initial and annual fee does not exist in most of the countries. In USA, for example, people sometimes find credit cards in their mail boxes. The competition among the banks forces to do so. Some issuing companies give credit cards from of charge.

The credit card issuer make their big money out of the interest they collect. When you draw on the credit card without having balance/sufficient funds, the bank is delighted. This is because it charges you, the moment you draw the amount from ATM. The rate of interest is 2.5% to 3% (there may be slight variance from nation to nation) per month or a part thereof. This works out to a whopping 30% to 40% per annum.

A global credit card can be used in 200 countries and can pay hotel bills, flight tickets and car rentals. Free offers are found in almost all credit cards, like personal accident insurance comes packaged with the subscription itself. There are also Reward Schemes and Reward Points on purchases you made with credit card. You can also opt for an add-on credit card (additional credit card), if another family members wants to avail of credit card facilities. For add-on cards also the issuer charges additional fees. Other than the regular interest charges, the credit card issuer collects the following miscellaneous charges on defaults.

• Late payment fee

• Charges on over limit accounts

• Check bounce (dishonour) fee

• Invalid check fee

• Replacement card fee

• Emergency replacement card fee (when you are abroad)

• Statement retrieval fee

• Charge slip retrieval fee

• Check pick-up fees

• Foreign currency transaction fee.

Credit Card Holder a Consumer:

Credit card holder is a customer/consumer as he was offered service by the credit card issuer. The consumer has got certain rights to question the services offered by the credit card companies. Consumer means, any person who, buys any goods for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any user of such goods other than the person who buys such goods for consideration paid or promised or partly paid or partly promised, or under any system of deferred payment when such use is made with the approval of such person, but does not include a person who obtain such goods for resale or for any commercial purpose; OR

hire any services for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any beneficiary of such services other than the person who hires the services for consideration paid or promised, or partly paid and partly promised, or under any system of deferred payment, when such services are availed of with the approval of the first mentioned person.

The second limb of the above passage clearly says about services for a consideration. The services offered by the credit card issuing bank are actionable if there is any deficiency of service. If your credit card company violates or exceeds the terms and conditions of credit card contract, you have always a right to take actionable claims over it. Some credit card bank employs strong arm tactics to recover the dues and sometimes incorrectly from the customers. In such case there is clear violation of consumer rights. The credit card holder can initiate civil and criminal actions over credit card issuing bank for all the illegal acts.

The following are some of the precautions to be taken by the persons who are applying and dealing with credit card issuing banks.

If you are about to sign-up for a credit card based on some promises, make sure you verify all of them. Even better get them in writing. Firstly, check the identification of the person to determine if he is an employee of the credit card issuing company or an agent. A direct selling agents visiting card will carry the name of his agency as well as which bank he is representing. You can insist on taking all details and benefits in writing or collect the broachers. Before signing any document, back-check the offer document and read the rules and regulations carefully.

As a precautionary measure, call the help line of the company or speak to the direct selling agents senior officer to check on the final offer. While handing over the completed application form, be sure to take photo copy/xerox of the same. Keep as much as correspondence as possible in writing. E-mail is a kgood option in present days. If your direct selling agent disappears, go back to the bank.

Deficient of Service:

The deficiency of service includes fault, imperfection, short coming or inadequacy in the quality, nature and manner of performance which is required to be maintained by or under any law or has been undertaken to be performed by a person in pursuance of contract or otherwise in relation to any service.

Service means any service in any manner which include the provision of facilities in connection with banking, financing, insurance, transport, processing, supply of electrical or other energy, entertainment, amusement etc.

As mentioned in the above paragraphs, any deficiency with regard to service is actionable. Agitate for consumer rights and be secure.