Case Review: Banking
Summary of some of the decisions made by the Mediators on some of the complaints received by FMB.
This summary is for information only and should not be used for other purpose.
MISLEADING ADVERTISEMENT (Case reference no : 2-0012)
Mr. G is a credit card holder of ABC Bank. He received a brochure from the bank on the easy payment scheme offered for the purchase of Tag Heuer watches from designated outlets. Under that scheme, the cardholders will enjoy installment payments at 0% interest for 18 months with 3 months rebate.
Mr. G purchased a Tag Heuer watch at the designated outlet. The retail price of the watch was RM4,559.99. The merchant granted a discount to RM3,800/- Mr. G agreed and proceeded with the purchase and opted for the 0% interest easy pay scheme offered by ABC Bank.
Upon receiving his credit card statement, he discovered that the Bank had allowed him to settle the purchase in 15 installments based on recommended retail price of RM4,559.99 divided by 18 installments and a rebate of 3 months. Mr. G's contention is that the installment amounts should be based on the price paid by him i.e. RM3,800/- divided by 18 installments with a rebate of 3 months.
An inquiry was held to mediate the dispute.
The brochure states that with purchase of any Tag Heuer watches through the bank's 18 months 0% interest scheme from 01/07/04 to 31/08/04, 3 months rebate would be taken off the repayment period and card member only to pay 15 installments. The offer was subjected to the following terms and conditions:-
" Valid at all XYZ Time outlets
" Valid for all Tag Heuer series
" Exclusive to ABC Bank Card members
However, it was not stated in the brochure that the scheme was only applicable to purchase of Tag Heuer watches at the recommended retail price. The Bureau held that the advertisement is misleading and Mr. G is entitled to 18 months interest free installments based on price paid by him i.e. RM3,800/-. ABC Bank agreed to reverse the amount overcharged.