Financial Institutions – They Are Not Lenders, They Are Suckers!
Finance | October 15, 2009 at 11:29 pmFinancial institutions are not those good Samaritans who help you out of financial crises out of sympathy and empathy like good friends. Well, I’m not saying that they should donate you money out of charity, but just see the kind of financial complications they put you in! Nowadays, when banks and mortgaging companies lend you money, they do so by charging you fees , many of which , turn out to be irrelevant or highly exorbitant. Apart from that, their terms and conditions also may be difficult to comply with. Here are some points that you could consider while going for that credit loan next time you need money.
Charging Interest On 0 Percent Balance
You might pay off your credited balance by the due date, but even then you might be charged interest on it. For example, you buy a $ 1,200 computer with plastic money at a monthly installment of $400 each on an interest of 1%. After 3 months when you clear off your entire balance, you might be charged interest for an extended period because it covers the grace period for the payments. So, you’re paying up interest even though you’ve cleared your dues! This is not an individual rare case, but a policy followed by more than half the banks of the nation.
Switching Due Dates For Payment without Sufficient Notification
The other day, my credit company sent me a notice that the due dates were being preponed. To my dismay, I found that I received the notice a couple of days after the due date. I could make out that they had not mailed the notice well in time. I called up the company, and the officials out there say that I had to pay late fee because the due date was already over, and they really could not consider any reason for that. Banks and financial institutions play their tricks by changing due dates without notifying their customers properly to extract the penalty money.
High Fee on Increasing Credit Limits
When you ask for an increase in credit limits, your crediting companies might charge you a fee of $ 400- $ 500 if you want to increase your credit limit by $1000. That is almost 50 % of the increased amount. Now do you think that’s fair?
High Overdraft Charges Regardless Of Conditions 
You might swipe more than your balance amount by mistake and another person might withdraw deliberately. But as the overdraft charge calculations are computerized, there’s no exemption for penalty for an accidental withdrawal. Some credit companies might waive this amount but otherwise you’ll have to pay the overdraft fee.
If you want to avoid overdraft penalty, you disable the over-drafting feature from your account. But did you know that some banks actually encourage you to go for over drafting? College students and others who were in-adept at handling finances are prone to over-drafting which results in getting penalized later.
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They are the biggest culprits in the finance world!
The title should be Suckers disguised as money lenders!
Plastic money! I hate this to the core! People use plastci money and enjoy but when it comes to pay they are bankrupt! they don’t even come to know where their money is gone.
I must say they are smart workers. They give you credit cards and the money given by the people are kept in the market so that they can get interets from both the sides!
Exactly! all the financial institutions charge so high fees that whether you use or not you will end up paying heaps of money!
Everything is only business in this world! this business of financial institutions is also on beacuse of people lke us who loves to live on debts.