Tweets on 2011-06-30

by Vinaya HS on June 30, 2011

in Finance

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From the “Important Information Document” bundled along with the Manhattan Platinum Credit Card application:

Death and Insolvency of a Cardholder: The entire outstanding dues in the Card account shall become payable in full by your successors or assignees in the event of your death or insolvency or winding of your business.

Credit APR = 37.20%

Cash APR = 41.88%

I doubt if the “death and insolvency” condition is even legal. Unless you personally guarantee something by putting down your signature, how on Earth can you be implicitly held responsible for paying someone else’s unsecured debt?

The interest rates are closer to “extortion,” but the Card Issuer (Standard Chartered Bank) claims that these are special rates on offer. Makes me wonder what their non-special rates are!

The only good thing about this credit card is that it self-destructs (i.e. becomes invalid) automatically unless you choose to explicitly renew it after a year (by paying an annual fee of Rs 999).




Thanks for reading this article. I'd love to hear your opinion. Please use the comments section below to share your thoughts. I frequently write new articles that also cover several other aspects of personal finance including credit cards, financial goals, health insurance, income tax, life insurance, mutual funds, retirement planning, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.

{ 5 comments… read them below or add one }

Sam June 30, 2011 at 1:30 PM

I would think the liability of the successors would be limited to the assets of the deceased…

Anil Kuppa July 1, 2011 at 5:54 PM

I guess these are the “normal” rates everywhere. A question, at your leisure time, could you post an article on “what really is the difference between APR and flat rate”. I googled, but I couldn’t really find a proper document.

Anoop July 2, 2011 at 3:27 PM

One good reason I said no to Standard chartered bank, when they offered me their Manhattan credit card…:D

Anoop July 4, 2011 at 1:38 PM

Don’t u think its a little ridiculous to pay annual fee irrespective of the fact that you use the credit card frequently or not??.. It baffles me that a user has to pay annual fee just for holding a card, in this case 999 Rs, it can buy me a Rs 50/- meal for next 20 days…

Ishita September 4, 2011 at 1:29 AM

What are Credit Cards?

It is a finan­cial prod­uct through which a user can pur­chase good/services in credit. In gen­eral terms, pay­ment is not done at the time of pur­chase and is made at a later date. The ben­e­fit of credit card is it increases the pur­chas­ing power of the indi­vid­ual with­out increas­ing the earn­ing of the individual.

Read the entire information about credit card basics – http://www.investmentbazar.com/credit-cards-basics/

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