Service fee<\/p>\n
I have the honor of possessing a Citibank Gold Master Card,
\nfor which privilege I pay Rp 250,000 per year \"service fee\". I am
\nprivileged with having to argue with local merchants not to
\ncharge me extra for using the card. Having had other Master
\nCards, as well as other credit cards from several parts of the
\nworld, a most unusual local bank policy appears to be creating a
\nsituation so that now, I never sleep. I should say here, that in
\nthe several years of using the Citi Master Card, I have gone past
\nthe two-week interest-free grace period for monthly payments only
\nonce. This was because the duration of my out-of-the-country
\nbusiness trip was extended.<\/p>\n
In this instance, immediately upon my return, I paid the
\nentire amount in full, as is my usual custom, and begrudgingly
\npaid the exorbitant interest together with the following month's
\nbill. An unusual Rp 5,000 monthly charge periodically has been
\nappearing on my monthly statement. After repeated inquiries to
\nthe bank, I was finally informed that this was an \"additional
\nfee\" charged for my monthly statement amount being paid in full,
\nin cash. Most businesses throughout the world welcome cash. Many
\nplaces even offer discounts for cash payments. Has the rupiah
\nsunk to such a level that a major international bank must now
\ncharge a penalty for the use of Indonesian legal tender? What do
\nthey know that we don't?<\/p>\n
I indicated to the bank that I thought this was ridiculous.
\nNowhere on the initial agreement was there indicated, nor
\nauthorized, a penalty for paying one's bill in full, in cash.
\nThey responded to my argument the following month in the form of
\nan additional Rp 5,000 charge. Because I disputed this illegal
\ncharge and did not pay, there appeared on my next monthly
\nstatement a charge for an alleged purchase involving Rp 10,000
\nand an accompanying Rp 20,000 late charge. This would appear to
\nbe a 200 percent monthly or 2,400 percent annual late fee.<\/p>\n
In addition to this, the bank also charged Rp 1,000 in monthly
\ninterest. By my calculations, this amounts to an interest rate of
\n10 percent per month, or an uncompounded 120 percent per year
\ninterest rate. The end result, according to the bank, is I now
\nowe a Rp 31,000 fee for being a good customer and paying on time,
\nin full as agreed. Perhaps some other reader with knowledge
\nof Indonesian Law would offer an explanation on the legality of a
\nclient being billed in rupiah, the legal tender in Indonesia,
\npaying in full in rupiah and then being charged a penalty for
\ndoing so. Citibank never explains, maybe because they never
\nsleep.<\/p>\n
JOHN NEWCHOK<\/p>\n
Jakarta<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/service-fee-1447899208", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }