Commercial Bank - misleading advertising?
I have two Commercial Bank credit cards, both taken out in June this year. When I opened my account I was told that Credit Shield Plus protection was added free for 2 months, and that thereafter I could opt out.
After 2 months (in August) I was billed 59.31QR for Credit Shield Plus, so I rang to opt out. I had already checked the small print for this policy and had decided that there were so many get-out clauses that it would be nigh on impossible to ever make a successful claim.
I also checked the company web-site and in the advertising for this policy the following is stated:
"For the first two months Credit Shield Plus cover is provided absolutely free of charge. Thereafter, the premium will be charged as detailed above. If cardholders do not wish to continue with this benefit after the free trial period they can opt out by calling on 4490000 or emailing on [email protected]"
I was told that this protection is mandatory for all new customers. I pointed out what I was told when I signed my contract, and I read out the above statement. The call-centre manager assured me he would investigate the matter. That was a month ago.
I have just been charged the premium again, and again I have had the same converstation with a manager. He said he'll look into it. I can't blame him as he has obviously been briefed that the policy is mandatory. The company web-site still has the above statement.
However (I believe) the bank have been less than honest. Their own web-site contains a significant factual innaccuracy, and the person who opened my account gave me incorrect information (although, again, I'm sure she acted in good faith, based on what she beleived to be true).
I am disappointed so far with CB - this matter is one aspect, the other (unrelated) is their dreadful internet statements (for credit cards and current accounts) - a 13-year old could design a better site, and the statement layouts are basic beyond belief. Additionally one can not access old statements online, you have to save the information to Excel, or rely on paper statements. It's 3-world IT from a blue-chip bank.
Going back to the original point, has CB broken any Qatar advertising or banking laws?
Oops! I meant CB in my last mail.
Thanks for your advice, however I will give QB time to investigate and then proceed accordingly.
Maybe you need to close the account first to prevent the accumulation of the charges related to credit shield. Then obtain documentary evidence that you opted not to be covered by this credit shield and demand reversal of the charges. There could have been some human error involved since the default entries should have been edited or changed to reflect in the system your request to opt-out. Was the advertisement silent about when you must inform the bank that you are opting not to be covered anymore? if that is the case, then the bank is at fault and therefore should revere the charges.
This is somehow related to insurance, not banking. The bank make arrangements with an insurance company who will then issue a policy for a certain premium. Sometimes the bank and the insurance company are sister companies. Now the problem lies where the premium was already remitted to the insurance company and this will cause delay in reversing the charges. It is bulk remitted and again add to the delay. So its really better to close the account.