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Be professional while using credit cards

Credit cards have become readily available and consumers in most countries across the world use them in carrying out purchases because of the ease. Due to the expansion of family needs, transactions carried out with credit cards have increased. Many traders and company owners believe that the credit card system improves the standard of living, while its critics view it as an extravagance.

Critics believe that credit cards make people with limited income live beyond their capacities. They say that credit cards result in added financial obligations.

Complaints & Responses Lowly act of upscale store: A woman consumer filed a complaint against a store that has a portfolio of selling upscale international trade brands. The complainant said that she had placed an order for a handbag and paid Dh19,000 in advance for it. After procrastinating the delivery of the bag for five months, the shop told her that she must pay an additional Dh3,500 for the bag. The Consumer Complaints Section contacted the store, and verified the complaint. The store then agreed to refund the amount to the complainant. She was given a cheque for the same and the complaint was closed. Agency to refund money: A woman lodged a complaint against an agency that helps in hiring maids. She said she had paid the agency Dh8,000 to hire a housemaid, but the agency was unable to arrange the same as per the promised date. The lady wanted the agency to refund her money due to the breach of contract. The complaints section contacted the agency and asked them to either send the promised domestic help to the lady at once or refund her money. The agency refunded the money the same day and the complaint was thus closed. Paint job not done: A consumer complained against a car selling agency. He said he bought a car from them and had paid an additional Dh1,500 asking them to paint the vehicle with an insulative paint. On receiving the car, he found that it was not painted the way he had ordered and on alerting the car dealer on the same he did not find any cooperation from their side. The section contacted the dealer who then agreed to refund the additional amount the customer had paid for the insulative paint. The complaint was thus closed.

Economists say that the rise in the consumption rate in society results in trade disputes, failure to settle in whole or part of installments, and consequently, court expenses to resolve these disputes.

Each family using a credit card must be well aware of the condition of its finance and strike the perfect balance between its resources and actual needs. Family members should educate themselves how best to use a credit card and to use it as a tool to manage purchasing attitude.

A consumer must be professional while using the credit card and should strictly make the due payments. He should activate the credit service on his ATM card as it is linked to local, regional and international financial networks.

The consumer must also be aware of his balance after making a purchase or a withdrawal using a credit card. Interest rates may differ and there are no charges for transferring credit via the model credit transfer card. Most of these cards mandate very low interest rates during the preliminary stage, but interest rates increase for purchases and cash withdrawals.

When credit card payments are made at the end of the month, the bank deposits the collected amount to the credit to the lowest rate and leaves the biggest debit to get more interest. In banking terms, this is known as the reverse credit card payments, which results in additional interest charges for the consumer. While taking offers, the consumer should use them to transfer the debt and repay the amount taken.

It is also advisable for the consumer to use credit cards to pay the dues without using it to purchase anything, so that they don’t incur any additional expenses, and subsequently additional payments. These payments must be made before the expiry of the preliminary period, after which chargeable interest rates are enforced.

It has been observed that the credit card has become a financial instrument that enables everybody to live outside their means. Eventually, they incur heavy debts with spiralling interest rates.

We call on consumers to equip themselves with the knowledge about the optimum use of credit cards. They should understand how their transactions are carried out and how to be professional while carrying out their transactions.

We are certain that there are several consumers reeling under the burden of credit card debts and many others have no idea about the functioning mechanism of the credit card or the conditions pertaining to its use.

(As told by Dr Jamal Al Fakhry, 
economy expert)

Authorities stress quality after-sales service

Abdul Aziz bin Hathboor, Director of Department of Economic Development-Dubai’s consumer protection section, stresses the importance of commitment to quality after-sales services and the implementation of that part of Consumer Protection Law No 24 of 2006 which says the supplier shall, prior to making any repairs or modifications to the product, notify the consumer in writing — and without charge — his estimation of the cost and the duration of the offer.

After the repair, the supplier should provide details in the bill on the parts that were replaced and their cost, specifying whether they are new or used or repaired. The supplier has to bear the cost of the labour and obtain the replaced parts. Under the law, the warranty for electrical and electronic items is three months. For durable products, it is six months from the date of receiving the product after repair.

However, the warranty will not hold if the product was used inappropriately.

The law calls for the supplier to provide after-sales services including spare parts and maintenance of durable products for not less than five years, or a period appropriate to the nature of the product.

The objective of the clause is to revive the market in terms of competition, especially companies associated with maintenance services, like automobile and electronics companies.

Al Hathboor, urged the after-sales service centres of automobile and electronic companies as well as spare parts sale centres to abide by the clause.

The objective is achieving quality performance and proving service professionally in terms of compatibility of goods, date of delivery, timing, speed and accuracy in work and handling.

The commercial compliance and consumer protection division’s work is to ensure that the legal provision is followed by suppliers.

— salah@khaleejtimes.com

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