MRTPC orders probe into credit card fees

Alarmed by reports that credit card companies have collected over Rs 6,000 crore in the last decade from customers by way of fines and late fee, the Monopolies and Restrictive Trade Practices Commission (MRTPC) has ordered a probe into the fees levied by them.

The anti- monopoly watchdog has asked the director general of investigation and registration (DGIR) to probe the issue, sources told PTI.

MRTPC ordered the probe after taking cognizance of reports that claimed credit card issuers extracted more than Rs 6,000 crore as late fee, cash, advance fee, billed finance fee, over-limit fee, cash withdrawal fee, insurance charges, cheque pick-up fee and service taxes during the last 10 years.

DGIR will direct banks to furnish details of their income during the last three-four years derived other than from credit limits (extra charges), the sources added.

As per the MRTPC Act, DGIR has to submit its preliminary investigation report before the commission within 90 days.

MRTPC has already initiated a judicial enquiry against Citibank, HSBC, ICICI Bank and HDFC Bank for adopting unfair practices for selling credit cards.