Delayed Flights? Here Are 3 Things You Must Know To Avoid Trouble!

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Delayed Flights? Here Are 3 Things You Must Know To Avoid Trouble

Delayed Flights? Here Are 3 Things You Must Know To Avoid Trouble

Delayed flights are not exactly ‘drag that airline to consumer forum’ situations. Even if they are, more often than not, it is distant future and not an immediate solution. But delayed flights definitely are ‘tear every strand of hair off my and everyone else in vicinity’s scalp’ situations. The frustration is unmatched and lack of options can easily blow the top for even walking, breathing Budhhas.

A troubled call for help from an Akosha regular, seeking advice on what must be done when the flight was delayed made us realize that there may be more consumers who can do with an easy to refer manual on options available in case of delayed flights. While this is definitely not an all exhaustive guide on the issue, it is a start—enough to acquaint you with the basics when faced with the delayed flight crisis.

Be Calm and Be Polite — Even though it is precisely the opposite of what you really want to do at the moment, be calm and be polite to the airline staff. Always remember that a delayed flight is not exactly the fault of the person across the counter. The airlines did not delay the flight on purpose to derive some sort of sadistic pleasure out of your inconvenience. In most cases, the delay is triggered by the unavoidable and your yelling and screaming can’t change that. What it can definitely do is create more troubles for you, inviting wrath and lack of cooperation from the only people who can possible help you—the staff. So, don’t yell! Calmly inquire about your options and choose whatever suits you. It may not always be the quickest way to your destination, but it may well be the only one. Always remember, the airlines are not obligated to find you the quickest possible option. In worst case scenario, they are responsible for ensuring food and lodging (if you are in transit and have missed the connecting flight—the catch here is that both flights should belong to the same service provider) till the next option is available and make sure you are on your way, eventually. Make your choices wisely and don’t let anger fuel the fire of your troubles.

Always Engage Multiple Means of Communication—Which automatically requires you to always take the precaution of storing your airline’s number in your phone. If the line at the counter is too long, try contacting their customer care via phone while you wait for your turn. Trying to reach an airline via phone in India, especially when there has been a crisis hardly qualifies as a wise advice. However, it is worth a try and if you are able to connect to them, it may quicken the process and hence cut down your trauma dramatically. This too does not mean that you will always find the quickest option to your destination, but it does mean that you will find an option at the earliest and this in itself, as anyone who would have ever been stranded at an airport would know, is nothing short of relief. Remember, sometimes waiting for the delayed flight to actually take off may as well be the only option but it is worth being aware of it being so, as soon as possible.

Plan In Advance, Know Your Options — For instance, if you are travelling through North India in January, delays due to fog are inevitable. Take them into account and plan accordingly, so that any loss of time due to flight delays is factored in. Remember, delays due to weather are deemed nobody’s liability and if you suffer due to them, chances are nobody shall pay for it except you. Apart from the delays on account of weather, airlines are liable to give a proper reason for the delay or else they may be held liable, eventually. The operative word is eventually. Even if the flight has been delayed for reasons that are not good enough, there is nothing much you can do about it at that very moment. While we are a staunch advocate of taking the issue to the consumer forum and make the airline pay up in due course of time, a lot of immediate heartburn and impending loss can be avoided if you always factor in a possibility of delay in your plans, weather conditions notwithstanding.

None of the advices listed above imply that you should quietly bear the unreasonableness of your service provider. In fact, if the inconvenience is unjustified, every consumer should drag the responsible parties to the consumer forum and claim compensation. However, in several instances, the delay may be justified in the sense that it is triggered by unavoidable circumstances or weather conditions. In such instances, there is nothing much to be achieved by losing cool or creating a scene. Knowing the options and proper planning are a passenger’s best bet and being prepared in advance can go a long way in avoiding a plethora of avoidable, add on troubles.

3 Things You Must Know To Avoid Falling In The Internet Banking Fraud Trap!

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3 Things You Must Know To Avoid Falling In The Internet Banking Fraud Trap

3 Things You Must Know To Avoid Falling In The Internet Banking Fraud Trap

Internet banking fraud and ways to avoid is undoubtedly a topic that has been done to death. And yet, people across country continue to lose money in such frauds with an alarming frequency.  Recent reports of a businessman in Bombay losing over 2 lakhs within 24 hours and Maharashtra Banking Ombudsman refusing to intervene in another internet banking fraud case (See full story  Lost In A Click, Lost Forever) leaving the harried consumer in lurch brought forth the urgency of a refresher course on the precautions you must be taking if you have an internet banking account. We bring you a lowdown on the basics.

Phishing Alert— Banks almost regularly warn and advice their customers against phishing scam. Phishing is a technical name for the scam in which fraudsters send authentic looking emails, purportedly coming from your bank that ask for your passwords and such other details. Despite the fact that people are warned not to send their details in response to any such emails or click on any links that may have been sent via such emails. And yet, even though it looks and feels like a no brainer, people still fall into this trap.

These are bare basics. Never ever click on any links that are supposedly sent by your bank even if they look absolutely authentic. Type out the address of your bank in the browser and check the homepage. Most banks have a policy of not sending such communications to their customers or seeking account related information from customers through email.

Be aware of the communication policy of your bank and be at guard against anything that looks even remotely suspect. Always remember, if your bank wants you to do something, they will ask you to first log on into your banking account instead of offering to do it for you or send you links to do the same.

Stolen Passwords/Hacked Accounts— Hacking accounts and stealing passwords constitute the basics of online frauds and consequently, the basics of online security. An updated anti-virus is a no brainer as well as the fact that unless someone will die if you don’t access your bank account, you should never access your bank account on a public network.

Also, there is a reason why a longer password with mixed characters is always advocated. Longer passwords are difficult to hack and having combinations of letters and numbers that do not use standard words that can be found in dictionary that can be guessed by a computer program trying out endless combinations of real words and numbers, makes them automatically preferred. You should also, ideally change the password frequently to prevent them from being compromised.

Save Your Smartphones— Smartphones are convenient and help us get a lot of things done far more quickly and effectively. But if that lot of thing includes stuff that involves internet banking transactions, it is time to beware. Every single principle that is applicable to using online banking using a laptop or a desktop is applicable to the smartphones. Keep your security system updated. Never trust any SMSs that are supposedly sent by your Bank and ask you to download softwares for various purposes. If you have to absolutely install anything, contact your bank and confirm. It doesn’t take long and can save you a lot of heartburn in the long run. Don’t access internet on public wi-fis, however tempting it may seem. Always remember, smartphones are rapidly emerging as fraudsters’ dream simply because most consumers don’t take time to be careful enough.

The list of precautions above is pretty basic and as we said earlier, has been repeated infinite number of times. And yet, history of such scams in the recent past clearly indicates that we cannot emphasize the importance of these precautions enough. Once a consumer falls prey to such a scam, it is indeed a painful walk through hell. Most banks are unwilling to take responsibility and even if they do, it is only after a harassing long while. Even the Banking Ombudsmen have been usually found unwilling to grant relief in such cases as they by design are not equipped to handle cases that fall in the cyber crime category.

The bottom line is that consumers’ vigilance is their only hope and this is one area where prevention is not just better, but probably the only cure.

 

Lost In A Click, Lost Forever! Banking Ombudsman And Banks Refuse To Grant Relief In Internet Banking Frauds

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Complaint About Internet Banking Frauds, Banking Ombudsman And Bankers Refuse To Grant Relief

Complaint About Internet Banking Frauds, Banking Ombudsman And Bankers Refuse To Grant Relief (Picture Credit :commerce.idaho.gov)

Two disturbing pieces of news unsettled our inbox today. Disturbing not because they concerned a national crisis; but simply because they implied that all of us avid internet users were under a dire threat..of losing money!

The first piece of news is from Mumbai where within 12 hours and 20 overseas transactions, a businessman lost over Rs. 2 lakhs in an instance of massive internet banking fraud of horrifying proportions. This Tardeo based businessman’s wife’s credit card was used for overseas transactions at the time when the family was in the city. What makes his situation worst is the fact that the issuing bank was way less than helpful and the police made him run around for 21 days before filing an FIR. Finally, the BKC cyber police registered a case on January 4, but the bank is yet to get back to him. He doesn’t even know if the transactions were made online or with a fake card.

Even though the bank has claimed that pending resolution, they have given temporary credit of Rs 2,05,023 for the 9 disputed transactions in customer’s credit card account, the incident is still a haunting highlight of the fate of internet banking and credit card frauds in the country.

Adding to the gloom, is another piece of news, again from Maharashtra.

The Maharashtra State Banking Ombudsman has refused to intervene in a dispute between a Kolhapur-based businessman, R. Unnithan, and his bank claiming that the case involves ‘elaborate documentary and oral evidence.’, which as per Banking Ombudsman Scheme is valid ground for rejecting a complaint.

Unnithan’s net banking account was hacked and an amount of Rs.9.65 lakh was withdrawn in 24 transactions across the country between April 12 and 13, 2012.

 This decision opens floodgates of troubles for the consumers caught in internet banking frauds because in most such cases bankers too refuse to take responsibility claiming that most such cases happen due to customer’s negligence and that banks take sufficient precautions and advice customers against such frauds.

While Banking Ombudsman does have a point to the extent that they are not an investigative forum, equipped to handle such cases; it does not in any way mitigate the fact that the consumers are regularly losing money in such internet banking frauds and are forced to suffer in the absence of a dedicated redressal mechanism. The liability needs to be set off for the aggrieved consumers and cyber cells in the country should be better prepared to handle such cases and ensure that money lost at a single click of a mouse is not lost forever!

In 12 hours, Mumbai woman’s credit card used in 4 continents (Times of India)

Ombudsman washes hands of internet banking frauds (Hindu)

 

 

Value Added Service Activated Without Consent? Dial 155223 And Get It Deactivated!

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Complaint Against Wrong Activation Of Value Added Services, Register At 15223 And Get It Deactivated

Complaint Against Wrong Activation Of Value Added Services, Register At 15223 And Get It Deactivated

It was a couple of days ago that we reported TRAI’s latest initiative to curb the pesky calls menace where the consumers were required to forward the erring SMS to 1909 for registering a complaint against it. (See full story Received A Pesky SMS? Forward It To 1909.)

While the success of this service is still under scrutiny with plenty of consumers reporting that menace continues unrelented. It remains a point of debate whether this is a result of lack of consumer initiative in using the services and reporting or the service has failed to achieve its objective as  such. Perceived success notwithstanding, this was still a start and is bound to have made a difference at least in some quarters, even if not entirely in visible.

And now, TRAI has come up with another set of services to curb the widely prevalent practice of activating value added services (VAS) without the consumer’s consent. Consumers can now register complaint about wrongful activation of value added services (VAS) like internet and caller tunes on a new common number, 155223, for all operators.

These services are, by design,  more action oriented that the previous one dealing with pesky SMS in the sense that once the complaint has been registered by a consumer, telecom operators will have to refund the amount charged for such activation of services. The only condition here is that to be able to get the refund, the consumer will have to inform about it within 24 hours on this common number.

Subscribers who have been using any value added services beyond 24 hours can also request for deactivation of service on this number. Telecom operator will have to deactivate service within four hours of getting phone call but the customer will not be eligible to claim refund in such cases.

The regulations have come in place from February 1, after the industry players failed to convince TRAI against them. Simply put, February 1, 2013 onwards, operators will have to take consent of subscribers before activating any VAS and deactivate it without charging for it if no consent is received from them.

Interestingly, compliance with these regulations will lead to an estimated Rs 12,000 crore revenue loss to the industry, which just about begins to describe the extent to which the industry thrives on cheating and troubling average consumers.

Good Riddance, we say!

New number to deactivate unwanted mobile services (Times of India)

3 Things Everybody Ought To Know About Health Insurance

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3 Things Everybody Ought To Know About Health Insurance

3 Things Everybody Ought To Know About Health Insurance

Health insurance or Mediclaim is one of the most fundamental types of insurance after life cover in terms of being an absolute necessity for everyone. Being as important as they are, it then becomes an added responsibility on us to be extra cautious and aware when opting for a mediclaim. While there is no dearth of options in the market, prospective policy holders often find themselves bewildered by the variety and miss out on the crucial points for consideration. We, hence, bring you a lowdown on some salient points that you must keep in mind when opting for a health insurance.

The Premium Conundrum—Premium for a Mediclaim forms the ground for maximum mistakes. Most policy holders tend to choose between policies based on their respective premiums—the cheaper, the better. It is a capital mistake to base such a crucial choice on the price tag alone. While choosing the policy, always make the final decision based on important considerations like the coverage being offered, your individual requirements and whether all your concerns are being covered and addressed by the policy. A comparative analysis of the price tags comes in picture only once the basics are settled and covered; not as the ultimate clinching factor.

Another crucial thing to remember is that premiums change as we age. Hence, while comparison of premiums is not the right way to decide the right policy, it is equally important to understand the changes in the premium with time and to ensure that the premiums remain affordable even after you retire. Premiums that rise exponentially and/or become unaffordable after a point of time are undesirable and should be meticulously avoided.

Simple and Substantial—Mediclaims often come with loads of ‘added features’. A basic thumb rule is to avoid frills as far as possible and always go for the basic. This is a price effective strategy and makes the selection of the mediclaim a much simpler process. However, opting for a basic cover doesn’t mean one should go for policies that offer a small coverage. Inflation in the health sector is incredibly high and what is an okay-ish cover today may become totally redundant by the time you actually need it. Always go for the highest coverage that you can afford, taking into account the increase in the premiums over a period of time.

Background Check of the Insurer—As we had stated earlier, there is no dearth of options when it comes to the availability of the health insurance in the market. However, the more the option, the more is the requirement of vigilance on part of the consumers. Apart from the bare basic of ensuring a trustworthy advisor, a prospective policy holder must himself be involved intricately in the process of choosing the health insurance. Always conduct a background check of the insurer you are about to opt for. Search on the internet for reviews and complaints. Reading enough reviews and complaints will give you a basic idea of how the insurer has fared in the experience of other consumers. This is neither objective nor a foolproof method. However, it is effective enough to raise an alarm if the insurer has a track record of bad services and unfair practices.

A lot of insurance troubles are pure bad luck. However, there are still a substantial number of troubles that can be easily avoided if enough diligence, caution and awareness are exercised.  Mediclaim is one of the most basic covers and comes handy in times of dire emergencies. Needless to say, caution is the key and while the issues we have highlighted may not be exclusive, they are enough to get you started on your vigil once you decide to opt for a health cover. 

Happy Borrowing Ahead! Loans All Set To Get Cheaper As RBI Slashes The Key Interest Rates.

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Loans All Set To Get Cheaper, RBI Slashes The Interest Rates

Loans All Set To Get Cheaper, RBI Slashes The Interest Rates

The guessing game is finally over and the much awaited, speculated and warranted RBI rate cuts are here.

These much awaited rate cuts have come after a period of around 9 months. The Reserve Bank of India on Tuesday slashed its key interest rates by 25 basis points and released Rs 18,000 crore additional liquidity into the system. The RBI slashed the short term lending rate or the repo rate 25 basis points (bps) to 7.75 per cent and Cash Reserve Ratio (CRR) by similar margin to 4 per cent, releasing Rs 18,000 crore primary liquidity into the system.

Technical jargons aside, in terms of practical implications, a reduction in the repo rate means a reduced cost of borrowing for individuals and corporates and a slashed CRR means banks have to park a smaller portion of the deposits with RBI which in turn means better availability of the funds in the system.

The repo rate, which was cut last in April 2012, stands revised at 7.75 per cent with immediate effect, while the liquidity infusing CRR stands at 4 per cent effective February 9.

The intent of the RBI behind these cuts is to provide an appropriate interest rate environment.

Happy Borrowing, Consumers!

Loans may get cheaper as RBI cuts key interest rates by 25 bps (Times of India)

IRCTC Is At It Again! Consumer Narrates His Story Of ‘Paperless’ Travelogue Of Harassment.

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complaint against IRCTC, TTE harassed a consumer for travelling without a printed ticket

complaint against IRCTC, TTE harassed a consumer for travelling without a printed ticket

Important: Of course ‘paperless’ travel works. But when it does not, it all boils down to sheer passenger harassment. A consumer narrates the horrors.

Tadka Take

We were almost caught by surprise by the debate and discussion that our post on one of our readers Zafar’s experience with IRCTC had triggered. (Read Don’t Travel By Indian Railways Without Ticket Print Out, You May Be Harrassed!).

There was vibrant debate on whether Zafar was at fault or not and whether TTE had deliberately harassed him or was he just doing his job. Points and counter-points aside, the idea behind putting forth that story was to highlight the loopholes in the system that can put best of the intentions in the waste bucket. The loopholes in this case being a staff that lacks knowledge, skill and most importantly the will to incorporate the changes in the system.

To IRCTC’s credit, plenty of us can vouch by the pleasures of a paperless, pain free travel with absolutely no issues. However, there are still instances where the whole paperless travel scheme is being completely lost on railway’s own staff, who continue to insist on a ‘printed ticket’. Whether this is a genuine misunderstanding of the rules or a deliberate attempt of consumer harassment is debatable. But what is important is that it is still happening.

Below is an experience, one of our readers Viswanath Urala shared as a comment on Tadka. We decided to put it up as a separate post because of the importance of the core issue it highlights. Below is Viswanath’s comment in which he had shared a letter he had written to IRCTC, reproduced verbatim.

Consumer Story

Letter to IRCTC:

Dear Sir/ Madam,

Incidentally, my mother, a senior citizen was harassed by one of your official at Hyderabad railway station in the night. He threatened my mother to not allow her board the train in the night because she did not have a “printed” ticket. He and his subordinate made her run around the station and outside the station in order to get a printed ticket though the booking was a confirmed e-ticket.

As a matter of fact, after taking Rs 50 as an administration fee, he allowed her to board the train, in spite of we having paid the necessary charges associated to an e-ticket. I believe he was doing it to all the passengers with e-tickets, demanding a “printed” ticket or threaten to forfeit travel. We have traveled so many times in the past and this is the first time we were harassed and even charged an administration fee, in spite of reading out the rules and regulations and showing the original e-ticket using an electronic device.

I am not sure if the receipt given by him is an original Railways receipt or a fake. Even if it is an original, I doubt that he will deposit it as a “fines” collected to the board. Per your rules and regulations, it does not say that a printed ticket is necessary when using the IRCTC online booking and that a photo id is all is needed to board the train.

My brother, XXXX accompanied her to the station, who can give you more exact details of the incident, but please let us know whom it must be addressed to. Is there a consumer grievance cell of the Railways that deal with this matter. My brother and mother have more civilized and are in good control of their temperament  but if I was not around, I would have started a “rail-rohko andholan”…….

Guess what IRCTC wrote to me:

1) instructions of doing it right (incidentally we were 100% right).
2) Contact the nearest railway station about the issue. (run from pillar to post).
3) Go get the Rs 50 back, from Hubli HQ as they found that we were right. (yeah right)

Tadka Take 2

Unlike Zafar’s case, here the TTE was clearly and deliberately ignoring the regulations of e-ticketing, which incidentally, even IRCTC agreed to. The problem is the way this grievance is addressed, without as much as a reprimand for the erring staff, forget action. What IRCTC failed to register here was that it was not about 50 bucks; it was about the harassment a passenger, that too a senior citizen, had to undergo despite abiding by the rules.

When it has introduced a system, a progressive scheme, isn’t it IRCTC’s responsibility to ensure that it is duly enforced and take stringent action when it is not? Is there any justification for letting the passengers be harassed in the name of a new system that is being flouted by their own staff?

Travelling Abroad? Here Are 3 Things You Must Know About Travel Insurance.

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3 Things You Must Know About Travel Insurance

3 Things You Must Know About Travel Insurance

Insurance is a dubious prospect and despite its proven necessity and utility, there is still a large section of individuals who think several times before investing even a penny of their hard earned money into insurance. It would not be an exaggeration if we say that has insurance not had tax benefits, the number of insurance patrons in this country would have been drastically low.

Admittedly, consumer awareness has increased in this regard in past several years and insurance has increasingly been recognized as a necessity rather than a liability. However, add travel behind insurance and we have consumers clamoring all over again.

Travel insurance continues to be an alien territory for the consumers, willfully sacrificed at the altar of frugality. Even when consumers do opt for travel insurance out of compulsion, they still fail to recognize the importance of this form of insurance and the things they must keep in mind while opting for it.

We bring you a lowdown on some crucial ‘Whys’ and ‘Hows’.

Travelling Overseas? You Need Travel Insurance—You need it not just because it is something needed to be done. You need it because it is your cushion against a whole lot of very real issues that one may face overseas including medical expenses, evacuation and repatriation, loss of checked-in baggage, delay in baggage, personal accident, loss of passport, trip delay and even hijack/other terrorist activities.

An overseas travel insurance is your safety net in a foreign land and hence, you must be extra careful when opting for a policy. Do not make the choice mechanically. Be cautious and aware.

Choose Your Insurer Wisely — Getting travel insurance these days is extremely easy with insurers having convenient tie-ups with ticketing platforms where the insurance policy is issued along with the ticket. But in this ease lies the trap. Don’t sacrifice your insurance to a safe travel for the sake of convenience. Be vigilante and make a lot of enquiries. Make sure your insurer is a established and trusted brand with a good track record. Do background research yourself on the internet and read the reviews/complaints of the people who have had an experience with that insurer. Their perspective may not be entirely objective but reading enough user reviews is bound to give you a fair idea of any recurring concerns or red flags with respect to the insurer.

Choose Your Policy Carefully—This is an extension of the previous point. In addition to a good insurer, you also need to opt for a policy that suits your individual needs. If you are a kind of a traveler who travels with bare minimum luggage, a policy that focuses on personal safety and insurance would be a better choice than one that puts a lot of emphasis on insurance of the baggage. Also, always compare the premiums and benefits before settling for a policy. The policy your travel agent is offering may not be the best deal around. Always look into the comparative pricing and coverage of all the policies and then make a decision.

While we hope that none of our readers ever be in a situation where they need to avail their travel insurance, we always intend to give you the best pragmatic advice—which in this case is to always get a travel insurance when travelling abroad. It is an investment that shall hold you in good stead.

Happy Travelling!

 

 

 

The Big Blow! Airtel And Idea Hike Their Call Rates Drastically, More To Follow Soon!

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Airtel And Idea Hike Call Rates Drastically, More Like Vodafone To Follow Soon

Airtel And Idea Hike Call Rates Drastically, More Like Vodafone To Follow Soon (Picture credit: widefide.com)

After years of providing call rates that progressively dropped in the fiercely competitive telecom market, the telecom companies have finally decided to bite the bullet and start hiking the call rates.

In a move that is shocking but not entirely unexpected, Airtel is reported to have increased call rates by almost 100%, effectively doubling the existing rates. The company is also reportedly reducing free minutes by up to a quarter and has increased prices of some call vouchers for prepaid customers by 5-15 rupees.

According to Idea’s spokesperson, company has raised call prices in some zones by withdrawing what she said were promotional offers but there was no across-the-board increase. According to media reports, Idea has also gone for a steep hike from 1.2 paise per second to 2 paise per second.

The fierce competition in the telecom market had sent the call rates tumbling down in 2009, with absolutely no increase for over 3 years. A hike, hence, has been long due.

More concrete information in this regard shall be coming in within next few days with respect to Airtel and Idea as well as other major players like Vodafone.

We shall keep you posted on the developments. But for now, it looks like bad news galore for the consumers!

Bharti Airtel raises call tariffs by almost 100% (Times of India)

Misselling No More! IRDA Comes Out With A Framework To Curb Insurance Frauds.

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IRDA To Curb The Insurance Frauds, Cheating Agents Menace, Comes Out With A Framework.

IRDA To Curb The Insurance Frauds, Cheating Agents Menace, Comes Out With A Framework.(Picture Credit: topcontentcenter.com)

Just because you are not paranoid, doesn’t mean your insurance agent is not out there to cheat you!

For the longest period of time, we have been resonating with this sentiment, urging our readers to be on guard against the misselling tactics of the insurance agents. For a glimpse of our concerns and take on this issue, see 5 Shocking Misselling Tactics Of Insurance Agents.

Our paranoia hasn’t been without a reason and the statistics emerging from within the insurance industry with respect to the cheating insurance agents has done nothing to quell our fears. However, the regulator IRDA seems to have been bothered by these concerns as much as the ‘aam junta‘ and after a long long while, decided to do something concrete about it.

IRDA has come out with a framework for monitoring frauds in the insurance sector and asked insurers to carry out due diligence on their staff, including agents. The circular issued by IRDA to the insurers directs them to lay down procedures to carry out the due diligence on the personnel (management/staff)/ insurance agent/ corporate agent/ intermediary/ TPAs before appointment with them. It is required that insurers understand the nature of fraud and take steps to minimise the vulnerability of their operations to fraud.

The insurers are required to submit a compliance report with the regulator by June 30, 2013.

A rigorous due dilligence of the employees, especially agents, if done right, is one of the most effective methods to curb fraudulent practices and to that extent IRDA’s has taken a step in the right direction.

IRDA has classified frauds in the insurance sector under three heads — claim fraud or policyholder fraud, intermediary fraud and internal fraud. It has also asked the insurance companies to frame anti-fraud policy and said that the company’s board would review the policy on an annual basis.

Insurer have been directed to inform both potential and existing clients about their anti-fraud policies and highlight the consequences of submitting false statement for the benefit of policyholder in the insurance contract.

We really hope that the move doesn’t turn out be another damp squid and does succeed in actually curbing this menace at least to some extent.

IRDA comes out with framework for monitoring insurance frauds (Business Standard)

Happy Realty! Government Set To Put Real Estate Regulators In Place; Stringent Regulations Against Cheating Builders.

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Government Set To Put Real Estate Regulators In Place; Stringent Regulations Against Cheating Builders.

Government Set To Put Real Estate Regulators In Place; Stringent Regulations Against Cheating Builders.

The need for the real estate regulator has been more impending than Manmohan Singh’s tough stance on many many issues. Consumer Tadka has pointed out the need for a real estate regulator numerous times. (See one of our prominent stories on the issue Did You Know About These 6 Things Your Builder Can’t Do But Still Does?).

In a massive relief for the consumers, it seems that this wish would be finally granted. The Government is all set to introduce a fresh legislation–The Real Estate (Regulation and Development) Bill in the budget session. The legislation is expected to massively reform the regulatory regime in the real estate sector.

Apart from putting in a regulator in place, the provisions of the legislation are fairly extensive in terms of a consumer friendly approach. The legislation aims to ensure builders sell residential property on the basis of carpet area instead of ambiguous terms like “super area”.

As per the provisions of the legislation, a real estate regulator in every state will make it mandatory for private developers to register all projects before sale of property and only after getting all necessary clearances, addressing a major concern of buyers about incomplete or fraudulent land acquisition.

According to the bill’s provisions, failure to declare status of clearances will invite up to a maximum three years imprisonment or fine that can amount to 10% of project cost. To make sure developers stick to timelines, the proposed law states that realty players will have to park 70% of funds in a particular bank account so that resources are not diverted and buyers are not left in the lurch.

Realtors will have to disclose project details and contractual obligations to ensure transparent, fair and ethical business practices. There can be a model agreement which is expected to reduce ambiguities in real estate transactions for the convenience of the buyers.

As expected, the private builders are not happy. However, the disagreements are expected to be resolved before the budget session. We just hope that when they are through, the legislation retains its current, consumer friendly form!

We shall keep you posted on the developments.

Realty regulator will keep builders on a tight leash. (Times of India)

 

Hike No More! Subsidized LPG Cylinders Cap Raised From 6 To 9; Diesel Prices Remain Unchanged For Now.

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LPG cylider cap raised from 6 to 9, oil companies to increase diesel prices by small amount

LPG cylider cap raised from 6 to 9, oil companies to increase diesel prices by small amount

The Petroleum Ministry has finally bit the proverbial bullet, and in a much expected move, increased the subsidized cylinders cap from 6 to 9 per year. This hike in the number of subsidized cylinders available for the consumers per LPG connection shall be effective from April 2013. This, in simpler terms means that April 2013, consumers can obtain 9 cylinders on a single connection at a subsidized rate (approximately ranging between Rs.410-450 per cylinder) while any cylinders acquired over and above this number shall be available at the market price  (Approximately Rs. 950 per cylinder).

The LPG rates shall also remain unchanged.

However, along with this obvious good news and consumer friendly measure, comes another decision of the Cabinet, which is bound to hit the average consumers really hard in the times to come.

While the Ministry has stated that the prices for the LPG, Kerosene and Diesel shall remain unchanged for now, as per the Cabinet’s decision,  the oil marketing companies have been authorized to hike the price of diesel from time to time by a ‘small amount’.

The definition of this ‘small amount’ obviously remains as dubious as ever and with oil marketing companies facing a loss of about Rs.10 per litre of Diesel. this small amount may turn out to be ‘not so small’ for the consumers. The Government has been assuring that this is not a complete deregulation of diesel and the hike would be small.

Fuel reforms have been long due and strictly from economic perspective, they are necessary, consumer troubles notwithstanding. However, the Government has obviously steered clear of unpopular decisions.

Economic concerns aside, we really hope for the sake of the consumers, that the no change in diesel prices continues and even if there is a hike, it is as Oil Minister Moily puts is “small”…really small!

Good News! Delayed In Filing An Insurance Claim? Your Claim Still Cannot Be Denied!

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complaint against oriental insurance consumer forum says claims are not timebound

complaint against oriental insurance consumer forum says claims are not timebound

Insurance and good news is an oxymoron in more ways than one. Yet this is one of those rare times when tidings from the insurance industry are favorable for the average consumers.

Predictably, insurance industry is hardly responsible for the good stuff. It flows from the Maharashtra State Consumer Dispute Resolution Commission.

In a landmark verdict that has the potential of fundamentally changing the way the claims are rejected by the insurers in this country, the Maharashtra State Commission has held that insurance claims are not timebound. The ‘deadline’ for filing a claim is not mandatory but only directory and the insurers cannot reject any claim simply because it was filed after the expiry of this ‘deadline’.

This remarkable verdict was delivered by the State Commission while deciding upon a complaint filed by a widow against the Oriental Insurance Company Ltd. The forum directed The Oriental Insurance Company Ltd to pay the widow of a man who died in a 2006 accident the entire claim of Rs 1 lakh plus a compensation of Rs 46,000 even though the claim had been filed well past the one-month ‘deadline’.

The Commission further stated that it has constantly held that giving intimation within specified period or within one month is not a ‘mandatory condition’, but it is a ‘directory’ in nature and breach of this condition does not empower appellant insurance company to forfeit or foreclose the insurance claim required to be duly settled.

And thus, the insurers in the country were duly snatched of one of their favorite grounds for repudiation of valid claims–delay in filing!

Kudos State Commission!

Insurance claims not time-bound: Panel (Times Of India)

 

 

 

 

Dear Railways, Why This Kolaveri Di? Fare Hiked Across All Classes!

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Railways hike fares across all classes by 20%.

Railways hike fares across all classes by 20%.

A fare hike that had caused Dinesh Trivedi to lose his office, courtesy the official banshee of Indian politics, Mamata Banerjee has finally come through!

After around 10 years of uninterrupted, unhiked railway travel, Railway Ministry has announced a fare hike of around 20% across all classes.

A hike that comes about a month before the budget and with an assurance from minister Pawan Bansal that they shall not be revised in the budget, have apparently been announced to pull railways out of its current financial mess.

Here is a quick lowdown on the hike.

  • Second class ordinary suburban fares up increased by  2 paise per km
  • Second class ordinary non-suburban fares increased by 3 paise per km
  • Second class mail express  increased by 4paise/km
  • Sleeper class  increased by 6 paise/km
  • AC chair car increased by 10 paise/km.
  • AC 3 tier increased by 10 paise/km
  • AC 2 tier increased by 6 paise/km
  • AC first class increased by 3 paise/km
  •  AC first class executive increased by 10 paise/ km
The increased fares shall be applicable from January 21, 2013.

If by any chance you are harboring any doubt about the enormity of this hike, don’t be mistaken. The hike seems modest simply because it has been spelt out per kilometer. When translated into actual fare, the hike is fairly substantial.

For instance, for every 500 km, the Sleeper class passengers shall have to shell out an additional amount of Rs. 30. The same holds true for the AC 2 tier passengers. AC 3 tier passengers have to shell out an additional amount of Rs. 50 for every 500 km.

This is not a 24X7 news channel and we really do trust you to do your maths. Suffice is to say that, 2 ministers and plenty of drama later, fares have finally been hiked…and hiked substantially. The impact shall reverberate at the grassroot level and the poorer lot, especially the ones for whom locals (like in Mumbai) and intercity trains are a basic necessity; the only means of commutation and ensuring a livelihood, shall be the worst hit.

However, as the average passengers steel themselves up for a deeper hole in their pockets, we really hope that this increase in fares actually translates into some increase in facilities, security and cleanliness of the Indian Railways too.  That alone shall be some consolation for the Indian masses!

10 Rupee Notes To Soon Become History!

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RBI to soon replace 10 rupee notes with coins.

RBI to soon replace 10 rupee notes with coins.

Seems its time that like 10 paise coin  and ‘chawanni’ (25 paise coin) and that good old one rupee note, your friendly 10 rupee note may soon become history!

That is true. Reserve Bank of India, the Godfather of Indian money has decided to phase out the 10 rupee notes and replace them with the 10 rupee coins.

10 rupee coins–those quirky, double colored discs, we had never taken seriously will replace the 10 rupee note. While these coins have been in circulation since 2009, they were well, as we said, never taken seriously.

The life of paper notes, according to RBI is only 9-10 months which is why they are being replaced by coins that are way more long lasting.

Time to start stocking the 10 rupee notes. They will soon have antique value!

RBI plans to gradually replace Rs 10 bank notes with coins (Hindu Business Line)

 

 

Dear 2013–We, The Women Are Not Available For Your Consumption!

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Delhi protest for Nirbhaya-the rape victim Picture credit:guardian.co.uk

Delhi protest for Nirbhaya-the rape victim Picture credit:guardian.co.uk

Dear 2013…And Every Single Year,Decade And Century To Come,

We are women and we are NOT available for your consumption.

We are not available for you to kick, beat, molest and assault; for you to leer, jeer and judge; for satisfying your voyueristic compulsions; for justifying your pseudo moral authority; for abiding by your perceptions on the way we should dress, breathe, die. But above all, we are not available for your pity, grace and mercy!

Our security is our right; not a grace you bestow on us as favor. And when this security is breached and WE are violated, it is NOT our fault. It is YOUR fault; a collective failure of the society as a whole. When we are violated, we will not hang our heads in shame–you should, the society should, the government should!

Nirbhaya is long gone. A nation jolted out of its complacence is out on the roads. The protests are much more than a mere demand for justice. They are a symbol of a nation that is really and truly ashamed; a nation that, for the first time, is very very scared.

Multitudes of rapes and sexual assaults happen across India every day. Why only Nirbhaya?

Probably because Nirbhaya was an educated young woman, from a caring and loving family, an urban background, was out on streets for no sinister purpose and had absolutely no connection, provocative or otherwise with her tormentors. In short, however hard we thought, there was no semblance of comfort or justification. Suddenly, sexual assault became a grim reality that really could happen to anyone…and the nation shook, not just with outrage, but raw, palpable fear.

Of course the brutality of the incident was crucial. As was the fact that this incident became a tipping point for a country, scarred by inefficient and insensitive system. The social catharsis that has been triggered by the incident is unprecedented.

But the catharsis shall not be complete unless the outrage stops being selected. Unless we give up the choice to ignore till it really hits us in the head; unless this society and the system develops an extreme intolerance towards every single incident that happens in any corner of the country; unless the outrage on the streets is internalized by individuals; unless every single person in this country stops looking the other way when something like this happens in the neighborhood; stops hiding when such incidents are reported, in the comfort of unpardonable justifications  like “She invited it”; “It happens all the time in those parts of the country.”; “It was within the confines of the house.”; “We don’t have such people in our house.”

An assault is an assault is an assault. There are no major or minor assaults. There is no lesser rape. There is no lesser victim.

As the nation fights for Nirbhaya, it should not forget about the Nirbhayas who are alive and whose number is expanding. Amidst the roars of a wounded nation, the silence of their trauma is deafening.

The laws need to be changed. We need a more secure nation. We need to prevent more Nirbhayas from happening. But while we concentrate on prevention, do spare a thought for the ones who have already been created and live. Strive for a society which is not just a safer place but a more honorable place for women. Where rape victims are not ostracized for being raped. Where they have a chance to restart their life with honor and dignity they deserve. Where their plight is a source of outrage–not mockery, insult and pointless pity.

Security is ideal; prevention is desirable; deterrence via stricter and more certain punishment makes sense. But none of this is an alternative for a society which lets even a rape victim live–with honor, peace and dignity.

The demands that have emerged from Nirbhaya’s case are logical and relevant. But to believe that if we protest enough and pass enough laws, we would be somehow able to have a rape-free society is wishful thinking stretched too far.

A society which actually cares for its women, for their independence, security and equality is a society where protection and aid are given as much as importance prevention. Of course, rape needs to be prevented. But, what when despite everything, rapes happen?

We need a society and a system that does not re-victimize the victims; a society where a woman can report a rape and still walk with her head held high; where rapists are ostracized, not the raped; where privacy is not a mercy but a right of the victim; where ignoring an assault is not an option for the authorities, where rape victims are not forced to commit suicide to protect their ‘honor’.

The change are fundamental and may be as drastic as conjuring up a rape-free society from thin air. But, while we demand the systemic and legal changes and honor the memory of a girl whose sufferings ignited the entire nation, let us not forget about the hundreds of those who languish in silence–alone and unnoticed.

While the roar of protests continues across the country and you fight a good fight, reckoning the changes– find time to look up for the organizations that work for the rehabilitation of  sex workers and abandoned sexual assault victims and write a cheque.

Nirbhaya’s soul will bless you!

Tadka Take: We had lofty plans for the beginning the year 2013 with consumer success stories and triumphs and all that has gone well in the consumer world in 2012. But Nirbhaya numbed us. This letter is our tribute to Nirbhaya and her likes in the country who suffer the consequences of a system that couldn’t care less about their security–equality and independence be damned!

Beware! The Cheque For Your Premium Payment May Buy You A New Insurance Policy–Without Your Consent!

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complaint against insurance agents misselling insurance policy IRDA  mulls new norms

complaint against insurance agents misselling insurance policy IRDA mulls new norms

Picture this. Your duly sign a cheque for the payment of the premium of your existing policy, handing it over to your agent well within time. A couple of months later you come to know that your premium was never paid. And not just that, you are also the ‘proud’ holder of a brand new policy–one you had never really bought!

Unbelievable as it may sound, this is a scenario which routinely presents itself in the insurance sector as a biting reality. There has been a disturbing rise in the number of cases where unscrupulous representatives or agents collect renewal payments but use the cheques to sell fresh policies to unsuspecting customers.

Mis-selling is a concern we have been regularly raising and warning our readers against (See 5 Shocking Misselling Tactics Of Insurance Agents That Everybody Ought To Know About!). This is just another facet that has raised its ugly head and need to be guarded against.

The issue has become grave enough for IRDA to actually plan an intervention and ensure such instances are not repeated. IRDA is reported to be considering a suggestion that renewal cheques should be made in favour of specific policy numbers to avoid such cheques being used for any other purpose except the payment of the premium.

At present, the regulations are unclear and unspecific. Insurers accept cheques made out to a specific policy number but don’t refuse those that are simply in favour of the company. Some  advise policyholders to specify the policy number on the cheque while others don’t. The result is a slew of such malpractices which not only leave a bunch of troubled consumers with unwanted policies but also insurance companies plagued by dissatisfied consumers.

Both the regulator and the industry are trying to rectify the situation by introducing fresh measures. While IRDA contemplates new regulation, several insurers are also planning to make mentioning policy number on the cheque mandatory. There are also proposals to have a welcome call whenever a new policy is purchased and let the consumer know if there is an unpaid premium of any previous policy.

While the regulations are contemplated and implemented, the chunk of responsibility to save themselves from the fraud lies with the consumers themselves. Awareness and education is the key.

The consumers should make sure that they always make the cheque stating their policy number. When buying a new policy, customers should mention their name, telephone number, email id and the name of the policy opted for on the back of the cheque.

Irrespective of what measures do or do not come into place, this is one sure shot way of saving yourself from this fraud.

IRDA mulls new rule to chequemate fraudsters (Economic Times)

Consumers Alert! Insurers Can’t Alter The Terms Of Your Policy Unilaterally At The Time Of Renewal.

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complaint against united india insurance, to pay for altering terms unilaterally

complaint against united india insurance, to pay for altering terms unilaterally

Ever been in a situation where your policy regulations said something when you bought them and suddenly at the time of redemption, you are told that terms were ‘changed’?

Unbelievable as it sounds, this is surprisingly common. Hidden in indecipherable fine print of most policy terms is the insurer’s right to change the policy regulations. Insurers surreptitiously change the policy terms at the time of the renewal and the result more often than not is a very surprised..scratch that..shocked consumer!

This is what precisely happened to a consumer in Mumbai who was admitted in Ashwini Ayurvedic Hospital at Borivali from May 3, 2007 to May 24, 2007, for which she was billed Rs 77,050. In addition, she had spent Rs 3,432 for medicines. She claimed these amounts under her mediclaim policy issued by United India Insurance, but the company rejected it, stating ayurvedic treatment was not covered under the policy. This despite the fact that similar claims had been honoured in the past by the Company.

The aggrieved consumer filed a complaint with the Mumbai Suburban District Consumer Forum which held this conduct of the insurance company was arbitrary. The Forum also observed the policy excluded only claims in respect of naturopathy treatment. There was no clause which excluded claims for ayurvedic treatment. The Forum directed the insurance company to pay the entire claim amount of Rs 84,491 along with nine per cent interest and Rs 5,000 as costs.

The most crucial aspect of this verdict was the fact that the consumer had challenged the change in the terms and conditions and claimed that the policy ought to be renewed on identical terms contracted when the insurance first came into existence. On the other hand, the insurance company claimed it was yearly contract and it had a right to change the policy conditions.

The forum, relying on the judgment of the Supreme Court, in the case of Biman Krishna Bose v. United India Insurance  held the terms and conditions of the policy could not be unilaterally changed at the time of renewal and that renewal would have to be on identical terms and conditions as embodied in the original policy when it was first issued.

A commendable verdict and a crucial one with respect to curbing the surreptitious practice of unilaterally altering the terms and conditions of the policy without the consent or knowledge of the policy holder.

Insurers have to inform policy holders about change in terms (Business Standard)

And Now, Complaining Against Your Local Kirana Store Shall Pay–Quickly And Conveniently!

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complaint against neighborhood kirana stores made easy by consumer affairs ministry

complaint against neighborhood kirana stores made easy by consumer affairs ministry

If we were to tell you that you should sue your neighborhood kirane waale bhaiya for cheating you, you would laugh,hysterically…or deem us to be delusional!

Who cares for petty cheating when serious issues are not resolved in time? Go to a consumer court for those 100 rupees that were fleeced…we must be really kidding you!

But no, we are not. We solemnly suggest that you would soon start considering filing a complaint every time your neighbourhood store cheats you.

Or so Consumer Affairs Ministry wants us to believe.

We had reported that a Parliamentary Standing Committee had proposed certain amendments to the existing law to the Ministry (see the article here Online Shopping Troubles? Filing A Complaint Set To Get Easier As Ministry Proposes Changes). If these materialize, they will enable the smaller complaints to be resolved quickly and effectively without getting stuck into the rut of  pendency.

In addition to the facility of filing complaint online  which is to be introduced very soon, the consumer affairs ministry has decided to set up a mediation centre, similar to a Lok Adalat, in each district of India under direct supervision of the district consumer forum. This measure is also expected to reduce burden on the consumer courts and help in faster disposal of cases.

It is expected that once this amendments are in place and operational, things will improve dramatically for the consumers, especially with respect to the issues faced by them on day to day basis.

For the sake of consumers, we really hope that this turns out to be true!

Soon, sue neighbourhood traders sans the legal rut.(Hindustan Times)

Online Shopping Troubles? Filing A Complaint Set To Get Easier As Ministry Proposes Changes.

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complaints about online shopping, filing a complaint will get easier

complaints about online shopping, filing a complaint will get easier

When we put up an article on the perils of online shopping in India (Read the article here 3 Things That Can Go Wrong With Online Shopping And How To Avoid Them!), several fingers were raised. Comments on a website that had re-published that piece (without our permission of course though they gave us due credit) said that we wanted the online shopping to stop in the country. That we were being naive, stupid and downright regressive.

Of course, those adjectives are rich and never really made an appearance. But we assume that this was what was intended.

Gracious comments notwithstanding, deriding online shopping was never our intent. We love the concept. We really do. The convenience is addictive. But all we wanted to convey to our readers were the perils that are inherent in the system, especially in our country which is still technologically growing.

Or else you would have said we didn’t warn you!

As always, the validation of our concerns comes straight from the horse’s…err…authorities’ mouth.

In a recent development, the government had assured a parliamentary standing committee that adequate safeguards would be incorporated in the law to redress the issues related to online shopping – which has more than doubled in the last one year.

Keeping in mind the issue of jurisdiction that has been recurring source of trouble in online shopping related complaints, a Consumer Affairs ministry official also said the amended law would make it clear that the jurisdiction of the complaint is the consumer’s home, where the financial transaction takes place and the goods are delivered.

The most interesting part of the proposal is the recognition of the fact that petty cheating goes unreported because of the trouble involved. As per the suggested amendments, consumers would also find a way to redress incidents of petty cheating they may face from an online service provider without having to opt for a lengthy legal process, besides a facility to file online complaints with district consumer forums.

The parliamentary committee has asked the ministry to expedite the proposal and make necessary amendments in the Consumer Protection Act to lessen the burden on consumer forums, and ensure that complaints are disposed of within the mandatory 90 days of their acceptance.

A ministerial proposal in this regard has been accepted by the plan panel for incorporation in the 12th Five-Year Plan.

Wary of being fleeced online? Here’s a ray of hope (Hindustan Times)

And Now, Consumer Protection Act Has A Postage Stamp! Jago Grahak Ab To Jago!!!

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President releases a postage stamp to commemorate 25 years of Consumer Protection Act

President releases a postage stamp to commemorate 25 years of Consumer Protection Act

Anything and everything worthwhile in this country has a postage stamp.

A couple of things that are not worthwhile too have a postage stamp! But we will pretend they do not exist.

President Pranab Mukherjee released a postage stamp to commemorate the completion of 25 years of the Consumer Protection Act. The postage stamp of Rs 5 denomination has been brought out by the Department of Posts and depicts the achievements made towards protecting the interest of consumers. The stamp has consumer awareness campaign slogan “Jago Grahak Jago“.

The Department of Posts has already printed 4 lakh of these stamps.

We honestly don’t know what degree of awareness and information can actually be spread through postal stamps in the era of emails and IMs. But then, releasing stamps is a long standing tradition of this country and whether or not the tradition is obsolete and whether or not, the cause of celebration is relevant, it still marks an ‘official celebration”. For this symbolism alone, this is a gesture that deserves an honorable mention.

And of course, it also reminds us that it has been a quarter of the century since Consumer Protection Act came into existence. Quarter of a century since consumer rights were first officially recognized.

Long time. Long enough for us to finally start taking them seriously!

President releases postage stamp on Consumer Protection Act. (Business Standard)

(Picture Credit: indiapost.gov.in)

Scam Alert!!! Sandhi Sudha Does Not Work! A Consumer Forum Slaps Heavy Fine For Failed Cure.

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Complaint against Sandhi Sudha, To Pay Over 25000 For Failed Cure.

Complaint against Sandhi Sudha, To Pay Over 25000 For Failed Cure.

Sandhi Sudha is a SCAM!!!

And no Govindas and Jackie Shroffs of the world can vouch otherwise!

A sensational advertising campaign with most prominent personalities from Bollywood and television made Sandhi Sudha a household name and a ray of hope for the vast elderly population of the country plagued by joint pains and related issues.

It has been a pain watching innocent consumers being so openly taken for a ride by a so called ‘ayurvedic‘ miracle that promised a magic that we knew would never happen.

The situation gets even more disturbing when prominent names of the glamour world agree to promote such products and further the fraud. They of all people in the world owe a responsibility to their followers, a significant chunk of whom are bound to take their word as Gospel truth. It is indeed disturbing to  see celebrities, both big and small, selling off their goodwill and integrity for a handful…umm… a bagful of cash!

Social responsibility of celebritydom aside, Sandhi Sudha has been a thorn in our side for various reasons. Targeting a segment of consumers who are troubled and rendered weak by age and ailments, these people have always been almost sure to get away, for the sheer lack of a fight back. Their target consumers are way too troubled to raise their voice and are doomed to suffer in silence.

We honestly don’t have words to express our angst and anger.

But finally, in some corner of this country, Sandhi Sudha has been brought to justice…even though a minor one when compared to the size of the fraud.

District Consumer Forum Solan slapped a fine of Rs 25,000 on Sapt Rishi Auyrveda Institute after finding it guilty of immoral trade practice on the basis of a complaint for selling defective ‘Sandhi Sudha‘ message oil product . The forum has also ordered the Institute to reimburse the complainant after paying Rs 3100 as entire cost of Sandhi Sudha and Rs 3000 as litigation cost.

The complainant was suffering from joint and back pain and had ordered the product in 2011 after watching its advertisement. Obviously, the pain was not cured and the firm did not respond to telephonic or written complaints nor did it refund the cost of the product.

Finally, karma bites Sandhi Sudha!

We just hope it happened more frequently and intensely…enough to pack up this scam for good!

Consumer forum slaps Rs 25,000 fine on Sapt Rishi Ayurveda Institute (New Kerala)

(Picture Credit: ishoppingtime.com)

 

 

Checking Your Cheque Book? Here Are The Things You Need To Know About The New Cheque Books!

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Things You Must Know About Your New Cheque Book

We had earlier reported that your old cheque books may become valid , come January 1, 2013. See Have You Checked Your Cheque-Books Yet?They May Go Defunct On Jan 1, 2013!

But what is different or should be different in your new, regulation compliant cheque book?

Most of the new features have been introduced to make the cheque payments a more secure and universalized mode of payment. The idea according to RBI was triggered by growing use of multi-city and payable-at-par cheques at any branch of a bank, increasing popularity of Speed Clearing for local processing of outstation cheques andhence,  implementation of grid based Cheque Truncation System (CTS) for image-based cheque processing

We give you a lowdown on the changes.

    • The IFSC and MICR codes, predictably are a must on every cheque leaflet.

     

    • All cheques shall carry a standardised watermark, with the words “CTS-INDIA” which can be seen when held against any light source. This would make it difficult for any fraudster to photocopy or print an instrument.

     

     

    • Bank’s logo shall be printed in ultra-violet (UV) ink. The logo will be captured by / visible in UV enabled scanners / lamps.

     

    • Background of cheques shall be kept as clutter free as possible for improving quality and clarity of images.

     

    • No changes / corrections should be carried out on the cheques (other than for date validation purposes, if required). For any change in the payee’s name, amount in figures or amount in words, etc., fresh cheque forms should be used by customers.

     

    • “payable at par at all branches of the bank in India” text will be at the bottom of all the cheques.

There should also be words ‘please sign above this line’ at the right bottom corner of the cheque. The customers will also be required to use a darker ink for their signatures on the cheque so that the signatures are scan-able.

You can see the image above for the sample layout of the cheque leaflet as mandated by RBI. However, most of the specification in there are technical and are more specifically intended for the Banks rather than the consumers. As far as an average consumer is concerned, the above checklist would be more than sufficient to establish the validity of the cheques. All that an aware consumer is required to do is to spend a couple of seconds checking the cheque.

We recommend you set those seconds aside as soon as possible. They will save you a lot of trouble!

(Picture Credit: RBI Docs)

 

Et Tu Pizza Hut! Serves Chicken Pasta Instead Of A Vegetarian One–A Harried Consumer’s Tale.

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complaint against Pizza Hut, Serves Chicken Pasta Instead Of A Vegetarian One

complaint against Pizza Hut, Serves Chicken Pasta Instead Of A Vegetarian One

And here come another veg/non-veg mix up!

This time is Pizza Hut!!!

Honestly, how difficult it is to distinguish a vegetarian serving from a non-vegetarian one?

Going by the rate at which this error is being repeated by the most reputed food chains in the country, it sure must take an Einstein to make the distinction. Us, lesser mortals, marking the distinction by looks and smell..tch!..only we knew the intricacies.

So this story comes straight from the non-veg heartland in the country-Kolkata. The heartland status notwithstanding, it is completely unjustified to shove non-vegetarian food down any vegetarian’s throat. The beliefs notwithstanding, it is a matter of respecting and upholding individual choices,

Pradeep Kumar, a consumer residing in Salt Lake City Kolkata had ordered a Veg Pasta at Salt Lake Pizza Hut. What he got instead was a Chicken Pasta, a mistake that could hardly be dismissed as a case of mixed boxes. To add on to the woes of the consumer, there was absolutely no response from the outlet when the consumer complained to them about the mix up. Nobody at the outlet as much as apologized for this blatant violation of their responsibility and duty as a respectable and reliable food chain.

As we have said earlier, oversights can be sometimes forgiven but deliberate disrespect of consumer’s grievances and rights can definitely neither be ignored nor be forgiven.

Pizza Hut! We really did expect better from you!

(Picture Credit: cyberrockk.com)

Have You Checked Your Cheque-Books Yet?They May Go Defunct On Jan 1, 2013!

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Consumers Alert-Old cheque books going defunct and invalid from January 1, 2013

Consumers Alert-Old cheque books going defunct and invalid from January 1, 2013

Yeah! That’s right!

Cheque books and/or cheques issued by the Banks that are not compliant with RBI’s cheque truncation system (CTS), implemented from October 1 shall no longer be valid from January 1, 2013 onwards. Banks across the country have been instructed to recall and replace such cheques and cheque-books before the deadline–a task, supposedly being carried out on a war footing.

CTS simply means cheques that have features like IFSC and MICR. It is of course a safer, more secure system and most  new generation private sector banks have already complied with these norms. Its the State owned Banks (as always) who are lagging behind and hence, rushing to meet the deadlines.

The consumers are being informed through notices pasted on Branches and ATM kiosks. Some banks are also providing the new cheque-books at the doorsteps of the consumers.

While this is definitely a desirable amendment for security purposes, the fate of the Post-dated cheques that are not compliant with the norms but have already been issued for dates after January 1, 2013 hangs undecided. Whether the banks will decide to honour such cheques or not remains to be seen, though going by the current positioning of RBI with respect of these norms, chances seem pretty bleak.

If you are a consumer of a State owned bank in the country, do make sure that you have the correct cheque book or have it replaced. Contact the nearest Branch immediately.

Agreed that banks are trying to ensure that transition is smooth for the consumers, but we know that plenty of things fall through the cracks–especially in the consumer world.

We wouldn’t want you to be the one falling through the cracks. Would we?

As banks get busy replacing the cheques, people have a tough time (Times of India)

 (Picture Credit: gnprinting.in)

Zor Ka Jhatka, Dheere Se! Talktimes And Offers Slashed By Telecom Companies, Very Subtly!

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Telecom Operators Like Airtel, Vodafone Etc. Slash Talktime/Discount Offers

Telecom Operators Like Airtel, Vodafone Etc. Slash Talktime/Discount Offers

I had really thought it was a mistake when my free talk-time expired before 30 days were up!

I was about to tear my telecom operator apart. Virtually, of course. Who do you think I am…Bella–The Vampire!? Actually, if I were, I would be the dullest thing around and this blog would have committed suicide before being born.

Sorry for the Twilight rant. I am just trying to get over the horrors of Twilight!

Back to the point. So just when I was about to tear my telecom operator apart, my retailer helpfully corrected me.

There was no mistake. My plan had been tweaked and was now valid only for 28 days instead of 30. I was too dumb, as my retailer gently pointed,  not to notice it at the time of the recharge.

Subtle and suave. And I am not describing some Hollywood heartthrob. This is probably the only description that suitably describes the conspiracy to slash our free talktimes–countrywide.

Telecom operators across country have been on a cost cutting spree. After years of mindless competition, slashing call rates faster than one said ‘hello’, offering discounts that resembled freebies and managing fierce competition that seemed to thrive only and only on offers rather than services, telecom companies are finally feeling the heat. And hence, discovering that there is a lot of scope to cut down the offers. And cutting down they are.

According to a Times of India report, (validated of course by our personal experience), over the last 15-20 days, mobile phone companies have subtly tweaked plans offered by various categories of discount vouchers.

For instance, Bharti Airtel has reduced the validity to 60 days from 90 days of a discount voucher available in Delhi costing Rs 28 that allows subscribers to make national long-distance calls at Rs .012 per second.

In Maharashtra, Idea Cellular has increased the price of a discount voucher to Rs 97 from Rs 72 that allowed users to call at 1.2 paise per second for a period of 90 days. Vodafone in Kolkata has reduced the number of free minutes to 55 from 65 on a ‘minutes pack’ valid for five days costing Rs 22. Tata Teleservices has tweaked a similar ‘STD seconds pack’ costing Rs 196 in Karnataka where it has reduced the number of free seconds to 33,000 from 36,000 over a month.

The tariff revision has been long due and honestly, we are surprised it took so long. But what is admirable is the way it is being done. No blatant cost cuts. No drastic increase in the rates. A very subtle and gradual tweaking of the existing plans.

While no consumer really likes shelling out more money, if it is a must, easing into the changes slowly is probably the best approach–both for the Brands as well as the consumer. The only thing that these operators must do is to keep the consumers informed, even if changes are apparently minor. Misguiding facts imply malafide, which we believe is not the intention.

Whether the operators inform you or not, Consumer Tadka is right here, armed with all you need to know. And we warn all the consumers to have a closer look next time when they get a recharge.

Trust us, it would be worthwhile. The real manifestation of ‘zor ka jhatka, dheere se‘!

Why Airtel, Vodafone, Idea, Tata are slashing talktime (Times of India)

 

 

Buying A New SIM? Brace Yourself For Troubles, Delays And Denial!

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TRAI Implements Strict Rules For Buying News SIMs, More Grief For Consumers

TRAI Implements Strict Rules For Buying News SIMs, More Grief For Consumers

We had reported that fresh and more stringent regulations for acquiring SIMs that have been implemented from November 9 by TRAI. See Warning: Getting A New SIM Just Got Really Tough! TRAI Implements Stringent Regulations.

 Bogus SIM cards have long been pointed out as a serious security threat, more so with clear instances of terrorists using illegally issued SIMs to carry out their operation in the country. Against that background, DoT is completely justified in its initiative.

However, as we had stated earlier, every stringent measure, especially the ones that are their for ‘security reasons’ come with their own set of inconveniences.

It has barely been a couple of days since these regulations have been officially introduced. And news of inconvenienced consumers has already started pouring in.

Times of India, reporting from Hyderabad has stated that the activation of SIM cards which earlier took barely a couple of is now taking as long as 10 days. Insistence on personal verification of every detail is also causing a trouble, especially those who have recently changed cities and have a particularly difficult time securing the necessary verification.

There are also instances of connections being cancelled just because the consumer was not available at the given number when called for tele-verification. Predictably, calling again to check is not a norm.

This is just one part of the country reporting but is fairly representative of the problems that can be expected in future from the rest of the country too.

The onus of course lies on the telecom operators to ensure that the procedure is smooth and the consumer is not inconvenienced beyond what is absolutely essential. More so when this is going to have a direct effect on their subscriber base.

How seriously this onus will actually be taken is however a debatable question, especially when the signs of trouble have made themselves visible so early on.

We can only hope that the Brands for once do actually think about their ‘poor’ ‘hapless’ consumers!

TRAI’s stringent rules delay new mobile connections (Times of India)

(Picture Credit: pcwhizkid.co.uk)

 

Warning: Getting A New SIM Just Got Really Tough! TRAI Implements Stringent Regulations.

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Getting A SIM Gets Tougher, TRAI Implements Stringent Regulations

Getting A SIM Gets Tougher, TRAI Implements Stringent Regulations

Remember the times when getting a SIM was easier than buying a sabji-bhaji from the neighborhood market?

Don’t give us that look. We have not lost it. Not yet.

The days of easy SIM getting are will soon be history. Or if the reports from  down south are to believed than they already ARE history.

With DoT coming up with stringent regulations in allotment of news SIMs, life is set to get way more troublesome for ‘mango’ consumers. For brewing troubles, see  Buying A New SIM? Brace Yourself For Troubles, Delays And Denial!

We give you a lowdown.

The new regulations have been implemented by DoT from November 9 according to which prepaid and postpaid customer will not get pre-activated SIM card and only after physical ‘verification of subscriber’  mobile connection can be issued or activated.

The SIM card activation is now possible only after following the new verification process and may take anywhere between 3-7 days to get activated.

Mobile operators need to do telephonic verification of new customer and also physical signing of Customer Acquisition Forms (CAF).  Postpaid and Prepaid Mobile connections are to be cleared only after physical verification of all original documents and matching of the applicant and the photograph attached to the application/CAF.

Crucially, if the information filed in CAF is found to be false, the seller or the mobile operator’s franchise can file a police complaint within 15 days and bring the issue to the notice of the telecom operators.

In this multi-layered system of verification, even the the retailer of mobile SIM cards needs to sign authenticating the documents submitted by the customer with CAF for having verified with original copies of proof of address and identity. It is also mandatory for the licensee/operator (mobile/telecom service provider) to sign the form prior to activation of the SIM card certifying the information provided on the form is correct.

Legal action can be taken against the telecom operators who fail to take action against SIM card retailers and customers who provide and acquire SIMs based on forged documents.

The norms have been in place for a couple of days now. We are in perfect agreement with the reasoning behind the implementation of these norms. And that is definitely not because we are still reeling under some kind of post Kasab hangover. It is because we realize the gravity that unverified SIM allotments can pose and have posed in the past.

Also, the  existing subscriber databases are also being cleaned up. Bogus or defunct connections are being deactivated. The shake-up has led to many operators shedding subscriber numbers by up to 5 per cent of their databases.

Stringent measure for security’s sake are absolutely commendable. But like every security measure, these too come with their own set of inconveniences–severe inconveniences.

But are they worth it? Only time will tell. But we really hope they are. We really hope!

DoT Tightens Norms : No Mobile Connection Without Physical Verification (Telecomtalk)

Now, tighter norms for new SIM cards (The Hindu)

 

4 Things Everybody Ought To Know About Cancelling Mobile Connections

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4 Things Everybody Ought To Know About Cancelling Mobile Connections

4 Things Everybody Ought To Know About Cancelling Mobile Connections

In an ideal world, acquisition of something is far more difficult and tedious than surrendering it. But who said that the world was ideal; even less so when that world comprises of the telecom companies. For  glimpse of the troubles that brew in the telecom world, see 10 Things Your Telecom Service Provider Will Never Tell You.

Hence, in this world of consumers, acquiring a postpaid mobile connection is easier than dropping the proverbial hat. Surrendering that very connection, however, is a different story.

Akosha has been getting scores of complaints with respect to postpaid connections that could not be cancelled for months despite repeated requests and completion of procedural requirements. Even worse are the instances where despite complete settlement and surrender of connection by the consumer, the company kept sending the bills for the cancelled connection. In most such cases, the trouble escalates with bills quickly turning into legal notices for payment of the outstanding amount for services that were never availed by the harried consumer. Cases of illegitimate demand of payment of substantial sums of money for cancelling the accounts are also not uncommon.

Akosha is not alone. A mere glance through various consumer forums available online shall quickly settle the doubts, if any, about the gravity of this issue.

While there is no sure shot way to avoid this mess completely, there are a couple of pointers that every consumer should keep in mind while dealing with such situations to avoid being cheated of their time and money.

Do It Yourself— This is the most important and probably the only way to avoid multiple issues that arise at the consumer help desk. Always ask the consumer help representative the exact procedure to cancel/ surrender the connection instead of simply saying that you want to cancel the connection. Relying on a consumer care representative to ensure that your connection will be cancelled is a huge blunder that can cost you dearly in the long run. Actually, it sometimes costs dearly in the short run too when the consumer care representative asks for payment of a couple of hundred rupees ostensibly garbed as convenience fee or security.

In most cases, the actual procedure for cancelling the account is a simple 3 step process:

1)      Write a brief letter requesting the cancellation of your account along with the declaration of the fact that you have already settled all outstanding dues. Your telecom service provider may have pre-defined template for this. Ask their consumer care representative for it. If you can’t find the template, write it as a brief application.

2)      Attach your latest bill.

3)      Submit it at the nearest branch of service provider and to at least 3 or 4 different email ids of the customer care.

Duplicate—With cancellation related issues multiplying, duplication is always a good idea. Send your cancellation request to multiple email ids in addition to the local branch. Troll the service providers’ website, related forums and everything else of relevance on the internet to find the possible places where you can send your cancellation request and send it everywhere. People who have been in similar situation with the same telecom service provider often provide useful tips on the issue. Do have a look at them at various online forums and review websites. Sending out application to multiple sources also helps, even though partially, in situations where the cancellation is inexplicably delayed and bills keep pouring in.

Get Your Cancellation Request Number— Once you file your cancellation request at the local branch, make sure you get a cancellation request number. This is essential for all your future communication with the service provider in this regard. Also, it is a proof that you had indeed duly placed the request and will be useful, in the event the cancellation is inadvertently delayed or denied.

Get A Full And Final Settlement Letter— Once your connection is cancelled, make sure you get a full and final settlement letter from an authorized personnel. This is extremely crucial especially when the instances of wrong billing of canceled connections are very common. This is does not guarantee that you will definitely not charged but it at least ensures that you have an evidence in your favor in case you are harassed.

Always remember, if you have settled all your outstanding dues, there is logically no requirement of paying any additional amount for cancellation of your connection. If you are still being asked for money, don’t pay up blindly and ask plenty of questions. Usually multiple calls to the customer help desk does the trick. It enhances the possibility of you coming across a representative who would be willing to give you the correct information with respect to both payment and procedure.

 (Picture Credit: asiabizz.com)

Kudos! Honda Cares For Its Consumers, Recalls Bikes For Defective Brakes.

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Honda Recalls 11,500 CBR 250R Due To Defective Brakes

Honda Recalls 11,500 CBR 250R Due To Defective Brakes

Right at the outset of this story, we must say that its heartwarming to see a Brand care for its consumers and for that alone, we commend Honda for its thoughtfulness.

For reasons, read ahead.

There is a bad news!

May be there is not!

It depends on whether you have purchased a Honda CBR 250R between March 2011 and September 2012. Also depends on your affinity for accident prone vehicles.

You guessed it right! Honda has recalled 11,500 CBR 250R bikes in India which were produced from March 2011 to September 2012. The reason cited for this is a possibility of limited ineffectiveness in front brake application, though this concern doesn’t impact the overall braking functionality and effectiveness of front and rear brakes under normal riding conditions.

Honda and Scooters India Ltd., in its statement has stated that this is a one of its kind voluntary move by any two-wheeler manufacturer in India and is in consonance with its global commitment to provide maximum customer satisfaction and highest quality products. Honda will rectify the problem free of cost, irrespective to the warranty status of the vehicle.

The company have started informing customers from Monday.

In a country mired by two-wheeler accidents that multiply at an exponential rate every year, this kind of pro-activism on part of a two-wheeler manufacturer is really and truly commendable!

Honda recalls 11,500 CBR 250R bikes in India (Times of India)

(Picture Credit: Ultimatemotorcycling.com)

 

 

Received A Pesky SMS? Forward It To 1909. TRAI’s Latest Regulations To Curb The Peskiness.

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Forward Pesky SMS To 1909. TRAI's Latest Regulations To Curb The Peskiness.

Forward Pesky SMS To 1909. TRAI's Latest Regulations To Curb The Peskiness.

We highlight the menace with apparent delight (our heart breaks…really it does…we are only bad with expressions!) and so we are duty bound to highlight the solutions–at least the ones that are on the table, efficacy notwithstanding.

So we had been talking about the pesky call/SMS troubles and what TRAI had been trying to do about it. See Pesky Calls/SMS Alert! Even Kapil Sibal Is Not Spared.

We had highlighted that TRAI has come up with fresh regulations to curb this menace and enable consumers to save themselves from the inconvenience. We give you a low down on the salient features of these regulations.

As per the latest guidelines, in order to curb the misuse of the concessional tariff plans for bulk users, a price restraint has been placed  on sending of more than one hundred SMS per day per SIM at a concessional rate.  The subscriber is free to send SMSs beyond this number, however, all such SMSs sent beyond one hundred SMS per day per SIM shall be charged  at a rate not lower than 50 paise per SMS.

Access providers have also been mandated to put in place a solution that will enable that not more than 200 commercial SMSs with similar digital signature are sent in an hour. This, however, is not applicable to non-commercial SMSs.

Most significantly for the consumers, filing a complaint against pesky callers have been made easy. The consumers can now be lodged by simply forwarding the pesky SMS (technically called UCC-Unsolicited Commercial Communication) to 1909 after appending the telephone number and date of receipt. A dedicated complaint registering system has to be put in place by the service providers.

Apart from these, the providers are required to take an undertaking from new consumers to ensure that the connection is not used for telemarketing purposes and the Access providers are also required to keep consumers informed via periodic SMSs about the consequences of sending  illegal commercial communications.

TRAI’s Guidelines Are Available Here.

 

 

 

 

Pesky Call/SMS Alert! Brace Yourself, Even Kapil Sibal Is Not Spared!

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Pesky Calls And SMS Alert-Brace Yourself, Even Kapil Sibal Is Not Spared.

Pesky Calls And SMS Alert-Brace Yourself, Even Kapil Sibal Is Not Spared.

 

Hi, I am Reshma. Will you be my ‘fraand’?

Don’t worry! Consumer Tadka hasn’t crossed over to the dark side. And we mean no offence to the Reshmas of the country. We were just reproducing the text of an ‘interesting’ SMS we had received a couple of days ago. And we assure you, this was entirely, completely unsolicited!

The trouble with pesky calls and SMS is their eerily accurate timing. They seem to have been timed to cause maximum disturbance and inconvenience. And hence, every time you are rushing towards a deadline or are in an important meeting or simply in a deep, delightful slumber–your phone is bound to buzz with a pesky SMS or a call, depending on how (un)lucky you are at that point of time.

And now, the last shreds of hopes that consumers ever harbored about getting rid of this peskiness from their lives, have been dashed to pieces by Mr. Kapil Sibal. In a country where ministers enjoy a demi-god…scratch that, a full fledged Godly status, a trouble that troubles the ministers themselves is nothing short of an insurmountable calamity.

With country’s Telecom Minister Kapil Sibal’s admission that he gets a pesky SMS every 2 minutes, the issue of unwanted calls and SMS took an inevitable disastrous turn from the consumer perspective.

However, despite the (now) awe-inspiring proportions of the issue, TRAI has been relentless in its pursuit to curb this menace.  Rahul Khullar, TRAI chairman had promised that something will be up by November 5–a promise that has surprisingly been fulfilled, at least on paper.

TRAI has come up with fresh regulations to tighten the framework for curbing the menace of pesky calls and SMSes, [quite fancily titled Unsolicited Commercial Communications (UCC) by TRAI]. See our detailed lowdown on the guidelines Received A Pesky SMS, Forward It To 1909.

The salient features of the guidelines include an upper limit of only 100 SMSes to be sent via concessional packages offered by operators per day and a simplified procedure to file complaint against pesky callers via SMS.

It has been only a few days since these guidelines have come into force. We will have to wait and watch to see if these guidelines do have an impact or they too end up biting the dust like previous times (e.g. DND facility).

Keep watching this space for the verdict!

Till then, may you be saved from the peskiness galore!

(Picture Credit: news.in.msn.com)

I get pesky SMS every 2 minutes: Sibal (tech2.in.com)

TRAI’s Latest Regulations (TRAI Notification)

 

 

 

 

Beware! Did You Know The Truth Behind The Diwali Dhamaka Offers? A True Consumer Story.

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Truth Behind The Diwali Dhamaka Offers--True Consumer Story

Truth Behind The Diwali Dhamaka Offers--True Consumer Story

Important: We are running this story as an illustration of the real ‘dhamaka‘ that lies behind the Diwali Dhamaka discounts and offers. Our only word of caution to every consumer waiting to avail the discount season–by all means go ahead…but do remember, its Diwali for the Brands too!

Tadka Take

Diwali Dhamaka!!!

Festive Season Discounts!

A look around and suddenly Diwali is a festival of discounts rather than lights.

Scores of middle class Indians eagerly await Diwali–not because they love the festival but because they want to adorn their house with Lakshmi’s latest luxury consorts–the LED TV that is up for grabs or that extra large refrigerator  designed to store humans.

But irrespective of the fact that the old television resembles a black and white antic, magically transforming every human form on screen into alien apparitions; irrespective of the fact that the attic storage is more functional than the old refrigerator and the table top is cooler than its freeze zone; the ‘mango’ junta waits and waits with patience that can put hermits in Himalayas to shame–for the festive season to arrive; the season when every coveted lifestyle adornment is suddenly so acquirable.

Every single Brand; every single showroom in the country is suddenly brimming with unfathomable generosity and for once consumer does feel like a king!

There is of course nothing wrong with this. The consumers get the best prices, excellent deals and Brands get business, loads of business. Its a symbiotic arrangement which works fine until the Brands are reasonably fair. See, we are very reasonable people. We don’t even demand absolute fair-play. We are happy so long as the game is ‘reasonable’. But even that seems humongous demand.

And so the consumers get lost in a maze of confusing terms, flashy ads and convenient fine prints. The end result is a consumer who feels that Diwali exploded right into his face and a Brand that laughs its way to the Bank.

Sridhar wrote to us with his story that is one of the typical cases of the consumer harassment that so frequently happens during the discount season. Below is his story in his own words.

Consumer Story

Like every typical middle class Indian consumers, I was also waiting for a festival season to buy home electronics to avail discounts and also lot of gifts. Was really happy to see Diwali celebration nearing and many shops have started Diwali offers for their consumers. On Nov 4th I went to SHAHS electronic stores at Chrompet area (@Chennai). Was very excited to see the LCD/LED/Plasma tv kept for display. Was very confused which TV to buy as all were so good at their point and unique features. But I finally settled with LG LED 42′ LS3400 series worth 50,000/-. The price was so high but still I could not resist myself from buying the TV (which definitely exceeded my budgets) through my HDFC credit card. As I was about to shift to new house on Dec1(and also did not want to loose this festive season purchase)), so I booked the TV and paid 50% of the price of 25000/- and agreed to pay the pending 25000/- this month end and get the product delivered.

On Nov 11th in TOI newspaper I see the SHAHS ad saying they give gifts worth 7990/- for consumers buying products worth Rs 50000/- or more(Have attached that ad in this mail). I was so happy to see this ad as I would be getting the gifts. My celebration time started. When I contact the SHAHS store where I bought the TV they said, the offer is applicable only for those consumers who bought more than one product worth Rs 50000/ or more and not for consumer who buy a single product worth Rs 50000 or more. I was shocked to hear this from the shop manager. I asked in return, why you are ignoring my gifts when you get the money 50000/- at the end of the day. WHy you focusiing on the no of products. You should concentrate on the Money and not the no of products consumer buy.

Just for cross checking I contacted OMR branch of SHAHS store and verified this gifts offer, they confirmed that this is applicable to even single LED TV also. And when I updated this news to the chrompet manager, he updates this to OMR store. Now the OMR store also ignoring their previous statements and saying the same stupid logic.

When I asked them why they did not mention this extra condition in the newspaper ad, they replied this ad will bring lot of customers to us. I was mentally affected by this statement from a responsible person.
I was totally shocked and was irritated that I bought a product from a fraud stores. I was completely upset to see they fooled me and also many more customers will be also fooled.

Tadka Take 2

Sridhar’s experience is by no means an isolated one. Nor is the tact to fool consumers by misguiding or confusing them a novelty. The trouble precipitates when the offers start getting dubious, advertising dodgy and fine print finer. This is the proverbial catch. If you are lucky, you will get past the festive season unscathed or with minor injuries. But if not, then your Diwali will be indeed ‘memorable’ but definitely not in a way you wish!

Picture Credit: auto.indiamart.com

Arrest Warrant Against Mr. Ratan Tata! A Car Did It! A Consumer’s Victory Against The Mighty Tatas.

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arrest warrant against Ratan Tata, the car that started it all!

arrest warrant against Ratan Tata, the car that started it all!

Arrest warrant against Mr. Ratan Tata on a consumer complaint!!!

This is a remarkable landmark in the field of consumer dispute litigation and indeed a consumer victory worth a dramatic celebration!

And Consumer Tadka is proud to have been following this story from its very inception and is even more proud to be amongst the first ones to report this awe-inspiring consumer victory!

It wasn’t long ago when we featured Chetan Gill’s story of his triumph over Tata Motors and its authorized dealers in Chandigarh. Chetan’s newly bought Tata CS had begun creating serious troubles within a month from its purchase, which could neither be identified nor rectified despite repeated visits to the workshop. A complaint was filed with the Chandigarh consumer forum and both the Chandigarh District forum and the Chandigarh State Commission held Tata Motors and the dealers liable towards the aggrieved. (Read full story Bumpy Road! Tata Motors’ Consumer’s True Tale Of Victory Against Harassment, Delay And Denial!).

What was significant in this verdict was that the State Consumer Commission not only ordered Tata Motors to pay a compensation of Rs.60,000 to Chetan but also repair of all the defects in the car and if the defects are not removed to the satisfaction of the complainant then refund of full price of vehicle without taking any depreciation into account.

As we had reported, Chetan promptly received the compensation of Rs.60,000 from Tata Motors. However, the defects in the car were not rectified to Chetan’s satisfaction even though the car was kept at the workshop for 7 days and Chetan repeatedly brought the defects to the notice of the workshop. Even though the defects were not rectified, Chetan was not refunded price of the car as directed by the Consumer Commission.

Relentless Chetan filed an execution petition with the District Forum contending that Tata Motors and their dealers, Joshi Autozone were liable to pay him Rs. 4, 80, 573, the price at which the defective car was purchased along with an interest payable at the rate of 12% from January 17, 2011. Tata Motors contended that the defects had been repaired but the forum concluded that there was nothing on record (job card etc.) to show that any  action was taken to rectify the defects that were found in the car. Hence, rejecting their contention, the forum found Tata Motors and their dealers liable to refund the full cost of the vehicle, to the tune of over 4 lakhs to Chetan.

This was not all. What is most remarkable about this verdict is that forum found Tata Motors (represented by Chairman Mr. Ratan Tata) and the dealers guilty of violating the orders issued by State Commission, hence liable for punishment under the Consumer Protection Act. Warrants of arrest were issued against the erring parties, requiring their presence before the forum on November 26 when the quantum of this sentence would be decided.

 And now, Chetan awaits the spoils of this well-deserved victory!

3 Things Young Investors Must Know About Equity Investment

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3 Things Young Investors Must Know About Equity Investment

3 Things Young Investors Must Know About Equity Investment

Equities are the proverbial ‘double edged sword’ in the field of investment. Technically, they are dubbed as ‘high risk, high return’ assets. And the fact that they are ‘high risk’ automatically pushes them into the forbidden category for the ones who are planning to start off in the field of investment.

While it is true that one should not invest in anything, least of all equities, without understanding their dynamics, it is equally foolhardy to steer clear of an excellent investment avenue just because it seems too daunting or scary.

Equities are an essential component of any effective investment portfolio and young investors must not make a complete exclusion of this category if they want to create an efficient investment scheme for themselves. While it is not possible for us to delve into the dynamics of equity investment as a whole in a single article, we have culled out the three most important and basic things that a young investor must know and keep in mind when dealing with equities.

The Best Time To Start Is ‘Now’- Of course the markets are volatile and the returns hardly look like what they did in the pre-recession era. But if you are waiting for the markets to improve and equity assets to prove their worth, it is probably the most disastrous investment error that you can make. Equities fluctuate directly with the markets and hence, a downward curve is never a bad time to invest in equities if you plan to remain invested for a long period of time. This way, you are assured of reaping the benefits of the inevitable upward swing in the market which succeeds the lean phase.

As far as young investors are concerned, time is their biggest asset and irrespective of market conditions, our standard advice for any young investor is to start investing as soon as possible. The longer the investment time-frame, the greater are the benefits that are reaped. And of course, a longer time frame also increases the risk appetite of the young investors who have the security of income generation to cushion any unexpected loss, hence giving their investments time to recover through varying market cycles.

Invest Small, Invest Systematic- Bulk investing is almost never advisable, especially in the current market conditions. A systematic investment in small fractions ensures that your investment is evenly spread out, thus reaping the maximum benefits from the varying market conditions. SIPs or systematic investment plans offered by most funds are the best way to ensure that your money in simultaneously regulated and invested in a disciplined manner. Apart from the fact that this is an excellent way to discipline your savings, SIPs are also recommended to weather the changing market conditions efficiently.

Don’t Be Conservative. Do Diversify.- Being conservative is a cardinal sin for young investors when it come to investment. The risk appetite of the young investors is their biggest strength and it should be utilized to the hilt. However, this does not imply that the young investors should be careless with the way their investment is positioned in the market. It is crucial for them to understand the dynamics of various asset classes and then diversify the investment as per their long term financial goals. However, we reiterate, risk is an essential feature of a young portfolio and young investors should take the maximum advantage of high risk asset classes like equities. Even while investing in equities, there must be careful consideration of the nature of the equities (large cap, mid cap, small cap stocks/funds; diversified or sectoral funds etc.) and the investment must be distributed according to individual goals and capacity.

The young investors must understand that investment is not a sleep walking exercise or else, they would be confined to a portfolio that would be ‘safe’, but definitely not efficient. And once the young investors do get into the investment scene, they must be keen, aware and vigilant. The best way to ease oneself into equity investments is through mutual funds. (Read 3 Reasons Why Every Lay Investor Should Invest In Mutual Funds). They are relatively easier to understand and manage.

Irrespective of the mode of investment, young investors must understand the risks involved, always have an emergency corpus to deal with unexpected situations, in market or otherwise and be extremely aware and well researched on the asset classes they include in their portfolio. Investment in equity is hardly an avoidable proposition if one intends to get the maximum value for money and hence, young investors should delve into it with an aware gusto.

Beware! Your Restaurant Is Over-Charging You! The Service Tax-Service Charge Mess.

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Beware! Complaint Against Restaurant Charging Excessive Service Tax Wrongly!(Picture Credit:Legally India)

Beware! Complaint Against Restaurant Charging Excessive Service Tax Wrongly!(Picture Credit:Legally India)

Hard Rock Cafe and a bill of around 5K is hardly a surprise.

But it is, when you figure that around 1300 bucks of that meticulously crafted bill were wrongly charged!

When one of my friends came to this rude realization, he immediately dug out a post we had done ages ago (Read ‘Tax’ing-Decoding Your Restaurant Bill! ) on this issue along with a recent notice by Delhi High Court Bar Association (See picture, credit Legally India).

We have been crying hoarse for months now. But we will still refresh your memory so that at least next time when your restaurant overcharges you, you think twice before shelling out those hard earned bucks!

Service Tax is NEVER charged on the whole amount of the bill. It is only charged on the service component of bill which the Finance Ministry has pegged at 40% of the invoice amount. Thus, as per Finance Ministry stipulations,  the service tax is to be charged ONLY on 40% of the invoice amount (excluding the VAT charges). Therefore, the effective service tax becomes around 4% of your invoice. (percentage updated as per latest Finance Ministry notification)

Decoding Your Restaurant Bill!

Decoding Your Restaurant Bill!

This is more or less what Delhi High Court Bar Association has also told its members albeit with a slight error. According to this notice, service tax is chargeable only on ‘service charge’ which is incorrect. Service tax is chargeable on the service component of the invoice, as pegged by the regulations.

What Bar Council has also not mentioned is that ‘service charge’ in itself is not a legal charge and is more of a discretionary thing. Which means that if you don’t like the restaurant’s services, you can refuse to pay the service charge.

It may or may not work, but it is worth a try. If it is actually a place which cares for its consumers (rare but such places do exist), they will oblige. (This only applies to objective customers who really have an issue with the services and definitely not the ones who believe in baseless tantrums. After all, as consumers, we too have a duty of care and a sense of responsibility which must be adhered to!)

Also, the ‘service tax’ is charged as per ministry guidelines on a percentage of the invoice as determined by ministry regulations. No restaurant can actually vary this component at will, not at least to the disadvantage of the consumers.

If your restaurant is charging  service tax on the entire invoice or bill amount, PROTEST and DON’T PAY. This is a seriously disturbing trend, an outright violation of not only consumer rights but the regulations laid down by the concerned authorities and needs to be curbed.

And the ones who can actually really and truly impose an effective curb on the practice, are aware, vigilant and pro-active consumers!

 

 

 

3 Reasons Why Young Investors Should Invest In Real Estate!

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3 Reasons Why Young Investors Should Invest In Real Estate

3 Reasons Why Young Investors Should Invest In Real Estate

One of the most frequent advices that can be given to the youth when it comes to investment is starting young. And just because, the advice is so frequent, most of us tend to forget that it is actually the BEST advice anyone can be given.

Why is starting young so important? The answer is hardly rocket science. By the sheer luxury of time that youth has on hand in terms of the period of investment, the risk appetite is multiplied several times which in turn leads to investments that by design are high risk, high returns. At a simpler level, starting young means you have a lot scope for distributing your investments over a long period of time, ultimately leading to a substantial increase in the net amount invested. At a still simpler level, starting young means your money has that more time to grow and hence, higher returns.

While this common wisdom has had many young investors coming into the market, investing largely in equities and debt instruments , real estate continues to be an area out of the purview of the obvious choice of the investors. Going by the volatile nature of the economy these days however, real estate has rapidly emerged as a mode of investment that should ideally be on the top of the investment priority list, especially for the young investors. We give you a lowdown on the reasons why real estate should be preferred by the youth.

The Anti-Inflation Investment—Real estate investments are an almost guaranteed way to get around inflation. Real estate is growing market, more so because of the rapidly shrinking supply of land. You only have to go house hunting in a city like Mumbai to know the extent of land shortage in the country. A shortage supply logically means a growth in market and so long as this shortage persists, the market shall not slow down. The core point here is a careful market research before investing into the real estate. You can hardly expect your money to grow exponentially if you chose to invest your money in a landed property in remote UP. It shall still grow but not as much as it would in a more favorable location like Mumbai or Delhi-NCR. There are other considerations too, which need to be taken into account. For instance, in cities like Pune and Gurgaon, which thrive on floating population, investing in residential properties that can be leased out at a later stage is a good strategy.

These examples are illustrative. The moot point here is that investment in real estate can be an excellent strategy for the young investors to get past inflation. The essential corollary is proper market research and careful consideration before investment. Read up, ask around and ask plenty of questions. If you there is any doubt about importance of market research, read all that can go wrong with your real estate investment 6 Things Your Builder Can’t Do But Still Does.

Affordable Option—Yes, you read it right. Contrary to the popular perception, investing in real estate is actually one of the more affordable options with banks funding up to 80% of the cost. The young investors also get income tax benefits. A slightly more complex benefit is derived from the fact that young investors are expected to pay fixed installments over years which in effect amounts to purchasing an asset at a lower cost, whose value is bound to appreciate while the investor’s own income too keeps rising. For those young investors looking to discipline their investments, servicing regular EMIs is an excellent method. Of course, real estate is a volatile asset but from a reasonable perspective, it is still a safer bet than stock markets, especially when trade pundits across board have been reiterating the fact that the probability of appreciation in case of real estate investments is very high.

Tangible Asset—This is not exactly an objective benefit but may hold significant importance in several cases. Unlike old times when owning house marked a definite landmark in one’s life, young investors can now enjoy the benefits of a tangible asset pretty early on in their lives. If the property is a residential one meant for personal purposes, the obvious benefits are manifold. In several cases, the investors’ end up paying an EMI which is only slightly more or almost equal to the rent they would be paying otherwise, with an added benefit of actually residing in their ‘own’ place.

As we had stated earlier, real estate is a volatile option, even if relatively less so. And hence, the prudent way ahead is to make real estate one of the modes of investment in your portfolio and not the only one. An ideal portfolio has a balanced distribution between various options and irrespective of the benefits or the risk factors, concentration of wealth in any mode is problematic. The ideal way ahead is to start off with SIPs (systematic investment plans) and gradually proceed to real estate, as and when you reasonably acquire enough spare wealth to distribute between various investment options. The key is to be prudent with your money and invest as soon as you possibly can. And while investing in real estate, always remember, an aware investment is the only safe investment and a thorough market research is a must.

Wondering Why You Need Consumer Tadka? A Consumer Affairs Ministry Backed Study Gives You The Answers.

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Here Is Why We Need Consumer Tadka--Barely 20% Of Consumers Know About Consumer Protection Laws, Says A Study

Here Is Why We Need Consumer Tadka--Barely 20% Of Consumers Know About Consumer Protection Laws, Says A Study

And NOW we get a research backed reason for why Consumer Tadka is needed in this country!!!

We have been crying hoarse about the dismal condition of consumer awareness in the country and a dire need to inform and educate the ‘mango’ consumer.

And now, we have a research study backing our claim.

And this is not like one of those obscure researches conducted in remote Korea (or Jhumritalaiyaa though Korea is more exotic) on unknown subjects (or mice) about every seemingly mundane thing and their doormat having a role in enhancing the libido of either sex.

 This is a proper research, a study conducted by an NGO called CUTS International and Food and Consumer Affairs Ministry.

Apart from the comforting conclusion that we actually HAVE a Consumers’ Affairs Ministry which is actually DOING something for a change, the study has also unraveled some extremely crucial facts about the consumer ecosystem in the country.

One of the most important findings that this study arrived at is something we and elder siblings at Akosha have been crying out since ages–Only 20 percent of consumers in India are aware of the consumer protection law and just 42 percent of them have heard about consumer rights. Almost 50 percent of consumers are not even aware about government’s ‘Jago Grahak Jago’ campaign, a clear surprise going by the penetration of this campaign in the popular media.

The survey “State of Indian Consumers 2012′  was conducted in 22 states and union territories with a sample size of 11,499. Amongst other findings, the study also found that RBI was the most known regulator.

We have known the pitiable state of consumer awareness in the country all this while and yet it is intimidating when they put it in figures like this. It is a jolt, a rude realization of the daunting task that is ahead in the field of consumer awareness.

It is hardly a consolation that we are in fact a largely law illiterate country, where despite the dismal figure of 20%, Consumer Protection Act happens to be the best known legislation in the country.

The take away for the consumers and of course for us is simple–there is an awfully long way to go!

What is interesting is that the study also concluded that about 74 percent of those who know these regulatory agencies have reported benefiting directly or indirectly from their regulations, while the remaining 26 percent respondents do not agree to this.

See, we have been saying this all the while…knowledge is power and since numbers never lie, our assertion is effectively proven!

And now that research, figures and numbers are in sync with our demand, we say…more power to the Consumers and Consumer Tadka!!!  

20% Consumers Know About Consumer Protection Laws (Zee News)

RBI Most Known Regulator (Zee News)

Beware! Your Vegetarian Pizza May Have A Non-Veg Topping. A Harassed Consumer Crusades Against Domino’s.

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Complaint Against Domino's, Non Veg Tacos Served Instead Of Veg In Vadodara, Consumer wants 5L compensation

Complaint Against Domino's, Non Veg Tacos Served Instead Of Veg In Vadodara, Consumer wants 5L compensation

Veg or Non-Veg?

In a world where food choices are getting complex, being vegan is the new fad. For the uninitiated, vegan is the trendy term for good, old vegetarianism, albeit with some mind-boggling complications. (We have heard that a section vegans subscribe to the theory where all dairy products are deemed non-vegan, in effect implying that my glass of milk is actually a glass of liquid meat or something to that effect!).

Nevertheless, most of us India continue to remain unaware of the rapidly evolving world of gastronomy, and continue to divide our world food in good old fashioned way–vegetarians and non-vegetarians. (There is another category of convenience–eggetarians. This category basically comprises of that confused bunch of individuals who are unable to decide whether their love for eggs is greater than or lesser than their allegiance to vegetarianism. And while they decide, they sit over the fence..err..egg.)

We are simple people and it is really hard to get our choices wrong. We don’t have complicated considerations. If we are veg, we stick to anything that logically falls into the category–vegetables, fruits, cereals and likewise. We don’t make confusing inclusion or exclusions.

Atleast in this part of the World, distinguishing between veg and non-veg was no rocket science. Or so we thought.

But Brands  O Brands, you are on a relentless quest to prove us wrong…every single time!

This time, it is Domino’s. When Hitesh Tejani from Vadodara approached us with this issue, we were bemused. A simple order of Veg Tacos placed at Ellora Park branch of Domino’s in Vadodara magically morphed into Non-Veg Tacos at the time of delivery.

Complaint Against Domino's, Non Veg Tacos Served Instead Of Veg In Vadodara

Complaint Against Domino's, Non Veg Tacos Served Instead Of Veg In Vadodara

How did the mix-up happen, we are at loss.Especially, when a reputed and globally trusted Brand like Domino’s was on the other end. How on earth can they mix up vegetarian and non-vegetarian orders when they are supposed to be packed in boxes with distinct marking in green (for veg) and red (for non-veg). It really cannot be passed as a human oversight for a business to which this distinction is fundamental. It is an example of callousness in the extreme and a minor manifestation of the extent to which consumers are taken for granted by Brands in India.

The cherry on the top, so to say, on this disaster sundae is a complete absence of any remorse or attempts to rectify on part of the erring Brand. As we have always maintained, we can find it in our hearts to let go of the actual fault, but what makes the issue unforgiveable is an unresponsive, unsympathetic customer care, when approached for redressal.

Food business is serious business. Not just basic hygiene and health of the consumers is at stake, but sometimes even the sensibilities, religious or otherwise are closely woven in. We are not concerned with the ethical or moral debates around vegetarianism. But serving a professed vegetarian with non-veg food is definitely a disrespect of the consumer’s believes but also a blatant insult of his right to choice!

The least we can expect from Brands like Domino’s who have built empires around the loyalty of their consumers is–Respect.

Are you listening, Domino’s?

(Picture Credit: Stockwatch.in)

Check And Support This Spark-Domino’s should deliver tomato ketchup with its pizzal

http://spark.akosha.com/Domino’s-should-deliver-tomato-ketchup-with-its-pizza-id-32.html

Shocking! Mango Bite ‘Unsafe’ Says FDA, Asks Parle To Recall Stocks From Market.

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Complaint Against Parle Mango Bite, FDA Considers It 'Unsafe', Asks For A Recall Of STock From Market

Complaint Against Parle Mango Bite, FDA Considers It 'Unsafe', Asks For A Recall Of STock From Market

What if someone told a 4 year old that Santa was a lie? Or worst, that Santa was a cheat?

What if someone told you that all your fairy tale childhood memories were a sham, an ugly game of deceit?

Of course, I am being melodramatic! But then, when a part of your childhood is snatched, torn and stamped upon, some drama is warranted…and justified.

Remember Mango Bite?

Of course you do. That sweet, sour comfort toffee. The gentle taste of childhood-for kids and adults alike.

Over the years,that orange-yellow aam ki rasili goli morphed into the sour, green bite of kachcha aam, never for once losing its charm or appeal!

Each and everyone of us, whether born in 90′s or trendy 2000′s would inevitably have fond memories of Mango Bite.

But no more!

That very Mango Bite that resonated the security and safety only childhood can allow  has branded ‘unsafe’ by the Food and Drug Administration (FDA). Parle has been instructed to recall from the market, the entire stock of this popular candy.

Finished goods and ingredients worth over 2 crores have been seized from two Parle units in Raigadh and Bhiwandi by FDA officials, Konkan division. According to FDA, the manufacturer Parle Biscuits Pvt Ltd at Kirkhinde in Khopoli (Raigadh) used buffered lactic acid (adulterant) in the confectionery which is not permitted and is banned by Food Authority of India and Food Safety and Standard Act.

The samples have been sent for lab testing and a final decision will be taken only after the reports are received.

Meanwhile Parle has decided to take up this matter in Bombay High Court as it maintains that lactic acid is not unfit for human consumption.

Seems its going to be a long wait before, if at all, the next kachche aam ka xerox hits the market and our palate!

 Parle Mango Bite Sweet Unsafe (DNA)

Picture Credit: veganbengaluru.wordpress.com

 

 

3 Things That Can Go Wrong With Your Vehicle Insurance And Ways To Steer Past Them.

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3 Things That Can Go Wrong With Your Vehicle Insurance And Ways To Steer Past Them.

3 Things That Can Go Wrong With Your Vehicle Insurance And Ways To Steer Past Them.

Automobile in this country is much more than a tin box on wheels meant to ferry people around. Automobiles in all their avatars are symbols of ultimate human aspiration, a tangible measure of prosperity, ambition, achievement and in several cases, the only means of livelihood. You only have to watch Rishi Kapoor’s delightfully succulent depiction of common man’s car aspirations in critically acclaimed Do Dooni Chaar to get a visual grasp of this omnipresent fact.

Obviously then, the suffering that ensues when this automobile lands in trouble soup transcends financial and physical planes for its owners, usually escalating to an almost heartbreaking turn of events. Add to it the inevitable insurance troubles and it is a perfect recipe for disaster.

We sorted out a couple of generic issues that kept repeating themselves in various forms in scores of automobile insurance related complaints that have been received by Akosha in recent times. A few of these issues can be avoided by caution, awareness, necessary research and pre-preparation; the rest by sheer stroke of luck. But, there are still courses of action that consumers can resort to seek remedy against the unavoidable issues. We give you a lowdown.

Misinformation Conundrum—Almost all automobile insurance claims are a result of accident that automatically implies involvement of local police and mandatory FIR for being able duly file any claim (unless of course you are unlucky enough to have your vehicle damaged by something as benign as a falling coconut as happened in a recently reported case. For details, see Sorting The Insurance Skeletons.

Rakesh Kumar from Patna, a consumer had approached Akosha with his complaint against Bajaj Allianz. Despite proper survey by insurer and an assurance of the claim being processed, Rakesh never got the claim amount and was informed at a much later stage that the claim could not be processed because he had not supplied the necessary documents including FIR and permit as the vehicle had commercial registration. What was striking was that the consumer was never actually informed that he had to supply this document at any prior point of time before or after the survey.

Rakesh’s case is an illustrative instance of the trouble that are borne out of sheer miscommunication or lack of information. The way out is simple—don’t blindly rely on your insurer to provide you all the information. Even if they don’t hold back information deliberately, there still may be things that may have fallen through the cracks. Research on your own and ask loads of question. As far as possible, try to secure all relevant communication in writing.

The Documentary Pain-‘ No proper documents’ is every insurer’s favorite excuse and as seen in case of Rakesh’s complaint, can easily snowball into a major issue. FIR or the lack of it is one of the most common sources of trouble in such claims. As a thumb rule in all claims arising out of accidents, an FIR is a must and securing it should be your priority, whether or not your insurer has specifically asked for it and irrespective of the nature of your claim. This is every insurer’s favorite stumbling block and it is always better to err on the side of caution.

Insurers on their very own are capable of troubles that can last a lifetime. Add police to the equation, and a consumer inferno is guaranteed. Narem, a consumer who had approached Akosha with a complaint against ICICI Lombard, got a first hand taste of this inferno when his FIR was not filed by the police for 80 days and even when it was filed, his insurer refused to process the claim on account of delay.

These are the kind of instances that actually can’t really be prevented. But if and once they happen, consumers should immediately take up the matter with Insurance Ombudsman, as their claim can’t be denied for delays that are not really their fault. Also, when opting for a policy, carefully examine the time frame within which the documents, especially the FIR has to be filed with the insurer.

Consumers’ Faults—Much as most consumers would like to disagree, the insurers are not always necessarily wrong. You would be surprised by the number of issues and claim rejections that could have been avoided only if the policy holders had been slightly more careful, read the terms of their policy and complied with them strictly.

The most basic error that leads to rejection of claims is the fact that the vehicle was being driven by a person who did not have a proper driver’s license at the time of the accident. Driving a vehicle without a license is a serious breach of law and also a serious security threat to not just the driver/owner but everyone around them. And of course, it has a more tangible repercussion as an outright rejection of the ensuing insurance claim.

Not just the driving license, the insurance claims are rejected if the vehicle is not duly registered including instances where a vehicle registered for personal usage is engaged for commercial purposes. Always abide by the rules in this regard and duly register your vehicle to avoid such issues.

The troubles are manifold but as has been illustrated, most of them can be avoided with vigilance, caution, awareness and of course, abidance with rules and regulations. For the ones that still can’t be avoided, there are Insurance Ombudsman and consumer forums.

Warning: Don’t Fall In The Country Club Trap! Harassed Consumer’s Story Of Country Club Vacations’ Fraudulent Scheme.

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Complaint Against Country Club Vacations, Stop That Scam!

Complaint Against Country Club Vacations, Stop That Scam!

Important: We are running this story because we were contacted by several people who claimed to have been victimized by Country Club Vacations fraudulent scheme. Comparing notes, these consumers had figured that they had been victimized in more or less similar manner, concluding that this was not a one off incident. One of these consumers, Firoz Ahmad,sent to us his detailed story and we decided to put it up here, as much to create a buzz around the issue as to warn other consumers against falling in a similar trap. 

Tadka Take

Seen that guy with a thumbs up, promising you a dream holiday?

If you have, RUN!

Confused! Read on.

All of us have come across those pesky, over enthusiastic salespersons in malls, markets and theaters, urging; no begging you to sign some form and participate in some random lucky draw that has ‘lucrative prizes’. We all know it is a waste of time at best and a scam at worst. A few of us humor the sales guys, who apparently have no larger interest than hitting their daily target and sign, to forget all about it till the calls from the so called ‘contest organizers’ start making a hell out our lives. We swear never ever to end up signing these forms again, no matter how sympathetic or irritated we are with the pesky guy holding the pen and the form. And that for most of us is the end of the story.

Ever wondered what would happen if you ever followed through with that call? If you ever actually believed what those telemarketers said?

We can assure you that this is probably one of the only dreadful areas in life where absence of action actually yields better results.

Read on the experience of Firoz Ahmad, a consumer who actually followed through with the call and was rewarded with a horror story he would recount for ages to come.

Consumer Story

A few days back I had gone to PVR Cinema in Central Shopping Mall in Hyderabad where one nicely tucked boy asked me to fill up a lucky coupon which I did without knowing what it is for, I filled it and give them back (This is what they told me as I can’t recollect as I keep getting coupon from various shopping malls against shopping).

After couple of days later I got a call the same day I came back from holidays in North India informing that I won the lucky draw and three prizes were waiting for me – kitchen set, free vacation for a week for couple and some free entry in a resort in India and Abroad and I was the one of the first one to get this gift as per raffle draw from 500,000 peoples those participated in this draw.

I was not willing to go as I was tired and don’t trust in these offers but they kept calling me again and again to collect the gift and finally my wife requested me to visit them.

They asked me to come to Hotel Amritha Castle, Opposite Old Secretariat Building, Hyderabad near Tank Bund. All way round going to them I kept on getting phone calls whether I was coming or not. I counter questioned them whether this was about converting me into some paid membership at country vacation club which they flatly denied and offer me these mentioned 3 offers free against visiting them.

Anyways out of curiosity & wife insisting, I decided to go there and found that there were about 20-30 people just like me who were asked to come into a room. Inside that there were plenty of tables with one sales guy/girl trying to convert us into membership of Country Vacations. Right from the start, we were provided with the drinking water, juice and coffee given by them! There was some time pass survey taken by the sales guy and then a briefing from the so-called manager.

Well after sitting for more than 3 hours I said I had enough of the crap and wanted to walk away but they kept on holding me by one or other way providing sometimes juice, soft drinks and coffee too at various instance whenever we want to leave their office. I guess I was one of the few people who got caught on their trap as the offer was lucrative offer as per my wife. However finally we signed the deal for Rs 225,000/- for life time membership for vacation in India and abroad with various other lucrative offers that are provided in another attachment for your review and consideration but we didn’t received yet??

Finally at last, they sent me away after giving some bowls gift and some voucher which asks us to pay 4000 taxes while enjoying a free 25,000 worth stay for 7 days in some hotel in Kerala, Goa or Manali. The set was damaged as I found after removing the packing at home. The trap from this Country Club is they sell some membership for 2.25 lakhs for life time.

However while coming back we got call again on my wife mobile number with the same message of winning and later after reaching home the same to my brother in law that created doubt in my mind towards the company and I decided to check their site. As soon as I type their site I found lots of complaint about their fraud with several peoples who provided and logged complaint and finally I came to know that I was trapped in their net (see the attached link for their fraud with several people all over India).

I immediately call RAK Bank to stopped the payment as I was caught in scam company, but the customer care informed me to wait until the transaction is done that reflected today in my statement and immediately as I was advised I asked for this dispute form to get refund of my amount through RAK credit card I paid them and I didn’t use their any services yet not received anything except giving them money. I called them also to cancel my policy and refund as I doubt their company but they refused and the reason I need to contact RAK direct several times for the refund of my money that seems to be with fraud company.

Kindly go through the link for their frauds and issues:

http://www.google.co.in/search?hl=en&biw=1259&bih=631&q=country+vacations+fraud&oq=country+vacations+fr&aq=0&aqi=g2g-j2g-b1&aql=undefined&gs_sm=c&gs_upl=103273l103883l0l3l3l0l0l0l0l1001l1001l7-1l1 

Reading all these reviews above as it was same as I was offered I got sure that it is a fraud company. Also when I tried to call their head office next day to clarify the issues on net about their company they talked with me rudely and asked me to contact the same executive who dealt with me?? I called the head office and instead of providing assistance and clarification they asked me to talk with the lowest level for clarification?? Also they didn’t reply to my emails that I send to head office and was informed that I sent the email on wrong emails ID?? I checked and found that the email was correct as it was printed on, confirming my doubt about the company status as fraud company trapping innocent people.

You can notice that there isn’t a single reply from Country Club/Vacations, they don’t even defend themselves! So overall this seems to be a white collar scam and someone is becoming filthy rich by looting money on all such bogus things.

Tadka Take 2

We have reproduced Firoz’s experience in his own words without any alteration, retaining all the details so that any other similarly placed consumer can quickly identify with it.

We know that a whole majority of us would be put this experience down to the fact that this consumer followed through a call which common wisdom suggests should have been ignored,

But our only issue here is that whether or not a consumer exercises enough caution is a secondary concern. What is primary issue here is the fact that a company, a Brand is actually coaxing people into schemes they never want to buy, making promises they never fulfill and use improper if not entirely illegal means to influence people into believing them.

Intrusive telemarketing is anyways problematic and huge nuisance. But, it takes a way more serious turn when such telemarketing tactics are used to sell off schemes and products that are not entirely genuine or fair.

Country Club should pay heed to the concerns and issues being raised by these consumers and respond to clear their stance.

Till then, Country Club, that is actually a huge thumbs down!

(Picture credit: Fractionaltrade.com)

Do you have a similar story? Have you been defrauded? Share your stories with us at editor@akosha.com and we will make sure you are heard loud and clear!

 

Bumpy Road! Tata Motors’ Consumer’s True Tale Of Victory Against Harassment, Delay And Denial!

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complaint against Tata Motors, to pay 60K as compensation for mental agony-true consumer story

complaint against Tata Motors, to pay 60K as compensation for mental agony-true consumer story

Important: We are running this story against Tata Motors because it embodies 2 very important burning issues when it comes Brand behavior in instances of consumer complaints-(1) Stalling attitude to frustrate the crusading consumer and wriggle out of the issue (2) Not abiding by the consumer forum awards, in part or in full, unless forced through execution orders and/or threatened with arrest warrants.

Tadka Take

We have always maintained that cars and automobiles are the ultimate symbol of human aspiration in this country. by implication, the issues involving cars also end up symbolizing and encapsulating the bulk of issues faced by consumers in the country.

When Chetan Gill, from Chandigarh approached us with his story, we initially thought it to be one of the consumer forum triumph stories that we routinely cover. However, as we talked to Chetan, we figured his case was way more layered, capturing a lot of nuanced issues that were relevant to consumers of all sectors in general and not just automobile consumers. Chetan pointed out concerns that we had been highlighting for long, albeit Chetan’s concern were more weighted as they derived from his first-hand experience with the consumer forum.

Below is a brief background of what happened in Chetan’s case.

Consumer Story

Chetan had intended to buy a Tata CS from an authorized Tata Motors Dealer, Joshi Autozone in Chandigarh. Upon recommendation from the dealers that a Dicor engine is better than TDI, he bought a car in June 2008, with a warranty extending upto  December 2009.

The car began troubling Chetan in the first month itself, emitting abnormal noises and stalling when the air-conditioner was switched on. A complaint was lodged with Tata helpline and it was only after that the dealer, Joshi Autozone agreed to examine the car. They, however, failed to either identify or rectify the fault. It was evident that there was a manufacturing defect in the product which had been sold by Tata Motors and their dealers.

When Chetan filed a complaint, Tata Motors refuted the claim of there being any manufacturing defect. Car was declared defective from the first month of its purchase and had gone to the workshop on at least 15 occasions and was also  examined by an Expert Committee of Punjab Engineering College as ordered by the District Forum which had listed the multifarious defects. The Chandigarh District Forum awarded Rs.20,000 as compensation for mental agony and harassment.

What happened after this point is what makes this particular case interesting from Brand behavior perspective. Tata did not go into appeal, either hoping to resort to the age old stalling tactic to wriggle out of the trouble or happy to be let off lightly.

Relentless Chetan, however, went ahead and filed an enhancement appeal and the Chandigarh State Commission modified the District Forum’s award, ordering compensation of Rs. 50, 000 for mental & physical harassment, litigation charges of Rs. 10,000 and most importantly, repair of all the defects and if the defects are not removed to the satisfaction of the complainant then refund of full price of vehicle. What is even more appreciable is the fact that the refund was supposed to be in full, not taking into account any depreciation in the value of the product.

Tadka Take 2

As of today, despite Chetan’s victory in State Commission, Tata is yet to fulfill the later part of the award, that is repair the defects or refund in full. Cheatn is determined to see the end of this and is planning to opt for execution of the awards and get warrants issued against concerned Tata personnel if required.

Selling a defective product in itself is problematic, a cardinal error for any Brand, especially if it is as reputed as Tata. But. such instances could still be forgiven, as instances of human error, only if Brands were gracious enough to accept their mistake and take measure for its immediate rectification. In most such cases, what bothers us much more than the actual issue is the attitude of the Brands towards the aggrieved consumer. Stooping to stalling tactics in a bid to frustrate and get rid of the aggrieved consumer, is a fairly common and despicable practice among most Brands. Extremely disappointing when consumer happiness is supposed to be supreme for any responsible Brand, worthy of its reputation.

What has also become an extremely disturbing trend, going by the complaints that we get, is Brands avoiding to abide by the award of the consumer forums unless forced through execution orders and warrants. As was seen in this case, where Tata followed the award but only partially, stalling the rest. This is pure disrespect, not only towards the consumers but towards the legal system of the country. Brands really need to introspect and stop considering such cases as one of instances or aberrations. Trying to avoid a legal decree is serious misconduct and any Brand that chooses to indulge in such a practice is severely jeopardizing its credibility in more ways than one which may come back to haunt them when they would be least expecting it.

Keep It Simple Tata Docomo And Listen Up! Of Wrong Bill, Unresponsive Customer Care And A Harassed Consumer.

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Important: We are running this story because even though this is a complaint against Tata Docomo, it is  mish-mash of every generic problem posed by various telecom service providers in the country–wrong billing, unresponsive customer care and unrequited value added services. This is a story which will find a resonance with every telecom services user in the country.

Tadka Take

Telecom industry is flabbergasting. Or overburdened. Or both. We are still undecided.

There is no real explanation behind the mixed reviews we get, when it comes to telecom service providers in the country. In our experience, their customer care services are better than several other sectors. And yet, the steady stream of baffling complaints by severely harassed consumers against these service providers also refuses to relent.

We don’t know what to conclude. Do they take their consumers seriously? Or do they take their consumers seriously only when absolutely essential or else choose to theses issues fall by the way-side as long as they can?

Our guess is definitely the latter!

Rakesh Kandari, shared his story against Tata Docomo with us as a comment. But somehow, his concerns resonated with several others and we figured, this story that needs to be told, loud and clear–not just for Rakesh but for several others who are similarly harassed.

Here is Rakesh’s story in his own word.

Consumer Story

I have been using docomo post paid since last two months & finding a lot of problems with docomo. Please find below my earlier communication regarding the problem in bill.
My tariff plan is as below.
1) Rs.899/ month rental unlimited plan & 1500 SMS @ 49 pack & 6 GB (6291456 kilobytes) data usage of internet pack.

2) My total usage of internet was 5978561 Kilobyte for the previous month but inspite of having GPRS tariff plan of 6 GB, I have been charging for this due to technical fault of docomo. They are charging total bill of Rs 6946/-.What to do? either commit a suicide or take a note to docomo & entire tata tele group. Now I am afraid of using internet & calls. My msgs are within limit & GPRS too. I don’t know where is fault.3 times I have complained about the same but no one is bother to process it further. My surname in the bill, is wrong & inspite of complaining for the same as well , no one is bother to make it correct. even at the time of submission of documents name was correct, it is back office people mistake who wrongly typed my name. my name is only RAKESH KANDARI.

3) Unnecessary services like call me tunes, caller tune, dive in, must buy or others automatically docomo mentioned in the bill. I don’t know why again docomo on the edge, I am hating its service now, I didn’t activated such silly services, please deactivate such services & correct the bill.
3) I got total 18 pages of e-bill & found mistake on them, on page no-2, sms local tata number shown 16 & sms local others are 101 but there is no records for the same in entire bill.
4) On page-2- *444# subscription mentioned in the bill which is wrongly put & extra burden on customer. For the same Rs.33/- have been charging in the bill. Why are you doing such cheap thing?
5) On page 2-Tata docomo dive in VAS mentioned in the bill & charged for the same is Rs. 30/- mentioned, I didn’t activate this service, why are you mentioning such thing. Please don’t find the shortest way to levy the money on customer.
6) total internet data 2G usage shown 5978561 kilobytes & my tariff is of 6 GB means (6291456 kilobytes), for the same they are charging. Now they made total bill of Rs 6946.They are fooling us. Now my outgoing calls have been blocked. More than 5 days have been passed but no reply from their end. no customer retention & no traceability, I will write a mail to “Ratan Tata” as well.
Docomo customer care always gives standard reply on contacting them and they don’t prefer to help customer. Other service provider like Airtel, IDEA are  giving good services. it was my mistake to have Docomo’s number. Docomo people don’t find other way to earn money, why are they charging, I don’t want any kind of additional service from their end. this is my 3rd complaint against problem. Its very sad. I will go to consumer forum. If they cant give good customer service then they can leave the job and go somewhere else. I am loosing my patience because of them, their customer support exec. do not know anything; always stand with the standard reply. Please have some good CSR.
Don’t give us a chance to raise our problem; Docomo are opposite to their punch line keep it simple.

Tadka Take 2

We hardly think Ratan Tata would reply to Rakesh’s mail. But then again, who can blame Tata when the people he hires for responding choose not to respond. Wrongful billing in itself is a grave deficiency of services and when coupled with unresponsive customer care services, it is an issue beyond redemption.

One can’t hep but wonder why huge brands like Tata can’t get such simple things right. Processing a bill correctly is hardly rocket science, nothing that is complicated enough to lead a major mess up, unless of course, it is deliberate design to cheat.

But there too, we can give them a benefit of doubt, human error and all. But once the mess is brought to their notice, shouldn’t it be their utmost duty to clear it up as soon as possible. Why is resolution of such simple issues, this troublesome? Is it because these brands like Tata consider their consumers dispensable?

Consumer happiness is crucial for any Brand, even if it is as huge as Tata and it is high time that these brands begin taking their duty towards their consumers seriously.

Till then, nothing is going to be simple for the consumers, Tata Docomo tagline notwithstanding.

Picture Credit : cellbharat.com

Warning: Sony Xperia Ahead! Defective Handset And Harrowing Consumer Care-True Consumer Story.

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Complaint against Sony Xperia defective handset network troubles

Complaint against Sony Xperia defective handset network troubles

Tadka Take

Unsympathetic customer services are the staple of this blog. I shudder at the thought–what would we do if we Brands across the country suddenly decided to start treating their consumers well!

Our selfish sadism aside, the frequency of instances of problematic customer care services is enough to drive anyone to outright paranoia. We really do have a hard time retaining our sanity!

A handset with network problems is a nothing short of a nightmare. And the harassment is beyond description when an unresponsive customer care compounds these troubles.

Here is Anshul’s story in his own words.

Consumer Story

This is regarding my phone Sony Xperia Sola which I had purchased on 6/6/2012 IMEI no. 352264051782338 which started giving network problem and hence I submitted my phone at Sony Service Centre Shadipur Delhi on 17th July 2012.

I was told that system wasn’t working so I was given an acknowledgement slip on A4 size paper with the stamp of the centre and was told the phone will be swapped within 10-15 days. After 10 days I called the customer care and I was shocked to know that according to their system my phone was submitted to them on 21 July (I had to suffer because of the callous behavior of the service centre). It is a shameful act as per the reputation of the brand SONY.

I did not get any call from the service centre at all regarding any information of my phone so I called the customer care again on 3rd august and I came to know that my phone was ready and that it has been there for 2-3 and they did not bother to call me. Not to forget I did not have any job sheet and the only thing which I had was a piece of A4 paper. When I asked them why I was not called they told me that my phone was not reachable which is hard to believe (reference no. 93421256 ).

I got my phone on Saturday i.e. 4 August which was replaced with new IMEI no 3522644057097736, the phone was tampered as the black sticker above the motherboard area was not properly fitted. The phone again started given the same problem with additional problem of wifi not working. Again I raised a complaint on 5th August 2012 ref no 93424365.

I had now submitted my phone again on 7th August to the service station and I was told the same thing that it will take 15 days to replace the phone and if I want my phone at earliest I should contact the customer care. As suggested by them I called the customer care on 9th August and I was denied a call transfer to the supervisor. The reference number for this is 93451222 and the person who attended the call was Dinesh (who was very rude) and said it’sthe policy and that nothing could be done and if you want to complaint regarding this I am free to do so.

This is not the end of the story as I got a red phone after replacement on 17/18 August instead of a black phone with scratches on it which I refused to accept and then I had a conference call with Mr. Danish, repair head Delhi, who through her associate mailed me that my phone will be replaced again with extended warranty till the time my phone was at service center.

scratched replaced phone given to me on 17.8.2012

scratched replaced phone given to me on 17.8.2012

I received my phone again on 25/08/2012 and it was shocking that this phone was still giving me the same problem and even after four replacements plus additional problem persisted and hence on 28/08/2012 I called them again and was shocked when i was on call with Assistant Manager who bluntly told that she cannot do anything and that I will have to go to the service center again.

This callous behavior is not acceptable that even after four replacements I am back to square one and I still have a defective phone with me which I haven’t resubmitted yet. I had to seek help from akosha.com who helped me contact the Sony people and on 4th September I got a call from the SERVICE REGIONAL HEAD of Delhi, Mr. Danish who told me that i have to submit my phone to the service centre(svc).As per the call on Tuesday(4.9.2012) Mr. Danish told me it’s a software related issue and will be resolved by going to the svc(the problem right now is same as it was with my new handset and on 17/7/2012 too they updated software and it didn’t work).

Still I had hopes and went to the svc on Thursday and it was closed and then I called Mr. Pradeep (Service centre head) on number 7827558388 and he told me he is in Faridabad and there was no one to open the svc and hence it is closed (just one member team for svc STRANGE!!!! they just closed the shop because there head was not there). Mr. Pradeep told me on phone that since the svc was closed he will send someone to pick my phone from my place and will get it done. On Saturday 8.9.2012.

I called him he said he will be sending someone but till 19:00 no one came and when I called him again he said no one was there and so he couldn’t come and didn’t even had the courtesy to call me to tell this and I told him to transfer my call which he refused.

I have taken almost every step which I could take, written several emails to them and also had made numerous call to the customer care but since my exams are approaching now I could not devote my time in going to the service centre again and again (which I was doing since 17/07/2012). I will be approaching the consumer forum as soon as possible but right now my concern is that I have a phone worth 18500 which is not working and they are not fixing it and not even replying to me.

Tadka Take 2

Multiple calls, rude representatives and harrowing routine is something most of our readers are pretty familiar with. But persisting issues in various hues despite multiple replacements and repairs is kind of extreme, that too for a Brand of the stature of Sony and a handset that costs somewhere around 20 grands.

Anshul’s story is a glimpse of the ugly end of the consumer-brand spectrum in the country. Unfortunately, from where we are looking, this seems to be the most prominent end. When reputed brands indulge in such callousness, it indeed signals ultimate consumer despair. But then, on second thought, it is the prominent brands that are most guilty of perpetrating such practices.

As far as Anshul’s ire is concerned, Sony, will you please pay heed!

 

 

Warning: Railway Meals Ahead! Food On Board Indian Trains-Delectable Or Cringeworthy-Tadka Debates!!!

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Tadka Debates-Meal Onboard Indian Railways

Tadka Debates-Meal Onboard Indian Railways

Railway ka khana is a personal peeve!

And it is not just about the frequent instances of cockroaches, flies, half the rodent population and their gory remains in the food..

It is also not about the stale chapatis, the smelly daal or the acrid dahi that is not so rarely served on board!

It is just about the food–even when it is otherwise fine, I have always found something inherently disturbing about the plate that is put up.

And don’t get me wrong. The sample plate I am talking about is not the one that is served as ‘dinner’ by pantries in long distance trains on order. I am talking about their supposedly better off counterparts, served in trains like Shatabdi.

I have somehow failed to see the difference.

The gooey mass that Railways serve as daal; the stretchy stuff they call paneer and obnoxious rolls that they call chapattis– this is somehow THE standard meal, train and money you shelled out for it notwithstanding.

The only perceivable difference between Shatabdi  and the other “lesser mortal” trains is the presence of that quintessential watery stuff served as “soup” and of course the mandatory “chai-pani” which by any measure is the only attraction and saving grace in the entire fare.

I did not mean to fill this up with my hate story for Railway food. I really didn’t.

What bothered me were the pages and pages of Railbandhu,(which for the uninitiated is the unexpectedly flashy on-board magazine for Railways, which by far is the  classiest of its endeavors ever undertaken) were filled with praise for Railway food. Forget the onboard meal, it even eulogized the oil dripping station staple “aloo-puri” (eeh…acidity anyone?)

Hygiene and such lesser concerns be damned, even if the taste were to be the only criteria, I still don’t understand how that stuff Railways call food be appreciated, let alone loved!

But, seems that there may be disagreement on this point and not just coming from Railbandhu but several living, breathing individuals. It seems  that there is no dearth of people who actually like that food and look forward to it as a highlight of their train journey.

I figured that there was actually no better platform then Tadka to figure what consensus on this issue looks like!

What bugs me may not bug you and that is what Tadka is all about.

So, tell us what do you think of Railway Ka Khana? 

Delectable meal or Torture Plate? Take your pick and share your views in the comment box below.

Who knows we may finally rest a national debate!

3 Reasons Why Every Lay Investors Should Invest In Mutual Funds

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3 Reasons Why Every Lay Investors Should Invest In Mutual Funds

3 Reasons Why Every Lay Investors Should Invest In Mutual Funds

Investment is a tricky business. Most of the aam janta, till a couple of years ago gladly stayed away from anything that had anything to do with bulls and bears unless they were nicely caged and chained live specimens. A huge section of the masses, for the longest period of time equated stock markets with scams ala Harshad Mehta and considered it wise to stay away.

However, with a booming Indian economy that celebrated the advent of 21st century, markets became more and more open and accessible, quickly and effectively moving beyond the traditional perceptions.

This change has been extremely positive, not just in terms of macro benefits for the economy but also micro benefits for the individual investors. Amongst these numerous positives, diversification of investment tools is one of the most important benefits that accrued to the common investors.

Mutual funds are one of the many investment tools that are available for the investors that can be used to harness the market benefits with varying degree of risks. (See our analysis of another investment tool, ULIP To ULIP Or Not To ULIP)

Mutual funds, by design, have a lot of benefits for the common/lay/first time investors. Based on our interaction with Akosha regulars including consumers, agents and related finance veterans, we culled out the most straightforward reasons from basic investment wisdom. We deliberately avoided complex reasoning and stuck to the basics of why any lay investor should consider mutual funds as an investment option.

Easy to understand, easy to allocate— Mutual funds can be broadly divided into equity, debt and balanced funds. For any first time investor, if they are aware of these three categories and how they operate, allocation of investment as per their long term financial goals is fairly simple. 

For starters, equity funds are high risk, high return funds that invest directly in stocks and hence gain or lose directly from market fluctuations. Debt funds on the contrary are low risk, low return funds that primarily invest in debt instruments like government bonds, fixed deposits and approved private deposits. Balanced funds allocate resources to both stocks and bonds, striking a balance between risk and gains.

Risk Appetite Based Allocation To Maximum Benefit—In simpler terms, mutual funds allow investors to allocate their resources to various funds based on the extent of risk they are willing to take or capable of taking. A simple thumb rule—if you want to stay invested for a long term (anywhere between 5-10 years), equity funds are your best bet because despite being high risk funds, equity funds are known yield rich returns to investors who remain invested in them for long enough. For people who can’t afford that long a span (mostly retired individuals in later years of their lives), debt fund is the way to go. Safer than their equity counterparts, they usually give a guaranteed return. Fixed deposits in banks serve similar purpose and there is usually no drastic difference between interest rates offered by debt funds and foxed deposits. However, market cycle does have a role to play and debt funds can be used as a way to diversify the portfolio and avoid concentration of money in fixed deposits. 

As an essential bottom line, mutual funds are NOT short term investments. If you don’t plan to remain invested for 3 years or more, or if you are prone to impatience, mutual funds are definitely not for you.

Systematic Investment, Disciplined Investment, Maximized Gains—Systematic Investment Plans (SIPs) are the best feature of mutual funds. For the uninitiated, SIPs allow investors to distribute their investment into periodic (usually monthly) installments that are, in most cases, auto-deducted from the investor’s account. This is very easy and manageable mode of investments, where investors don’t need to spare bulk of their savings. Besides, maintaining investment discipline, SIPs have a technical benefit in maximizing the gains and neutralizing the market fluctuations over a period of time. Simply put, when the market is low, your SIP amount shall fetch you a larger number of units as compared to when the market is on a high and the same amount shall fetch lesser number of units (because unit value or NAV fluctuates with the market), thus effectively neutralizing the fall. The pre-requisite, however is the same—you have to remain invested for a long term to secure the benefits.

There are plenty of other reasons why mutual funds are a preferred mode of investment. But as we mentioned, we have stuck to Grandma’s piece of wisdom for the lay investors. With experience, investors gain more knowledge about various instruments and market dynamics but these pointers are sufficient to get any investor started.

 

 

Idea Cellular, Are You Listening? Of Internet Data Usage And More–A Consumer Seeks Answers!

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Complaint Against Idea Cellular, Consumer Seeks Answer

Complaint Against Idea Cellular, Consumer Seeks Answer

Tadka Take

Internet connections in India are nightmares. And that is a serious understatement.

The issues are numerous, each graver then the last.

We already had referred to speed issues in a previous story Expecting 3.1 Mbps? You are in for a rude shock!

At promises that vary from 3.1 Mbps to 7.2 Mbps, most consumers are hardly fooled. When we get a connection, we KNOW that promised speed is not something that will be delivered and we will be stuck with an abysmal speed of 256 Kbps or a maximum of 512 Mbps (only if you are blessed with an exceptional luck,that is).

When it comes to mobile internet usage, the things get murkier. Between 2Gs and 3Gs, what most consumers are conclusively stuck with is less than optimum speed and absolutely no track of data usage. No wonder, most of us are caught by surprise whenever our data pack expires, wondering where and how we used it all up and even more importantly, why weren’t we intimated?

Most of the consumers have stoically accepted this reality and continue with their lives without as much as a whimper of complaint. What then hurts the most is that despite this exceptional cooperation from us consumers, who have completely unburdened the Brands of any expectations, they still end up bitterly disappointing us.

When Aditya wrote to us with some disturbing questions for Idea Cellular and its coveted internet services, it was as if he was not voicing his individual concerns but was a spokesperson of the entire harassed consumer community with respect to these services.

Here is what Aditya wrote to us.

Consumer Story

I would like to share my questions/objections about Idea cellular Ltd.

I want to point these out to TRAI also but not able to identify proper way for this.

While I figure out official way to convey these to official authorities, I request you to kindly publish these on your website also so it reaches maximum people.

I would like to raise objections about the service and practice being followed in Idea:

1.       This incidence happened with me during 6th September and 9th September 2012.

2.       I recharged with Rs. 300 (full talk time recharge for Maharashtra and goa region of idea) and Rs. 148 (GPRS recharge. 2GB day time + 2 gb nigh time data pack) on 6th September. On 9th September all my balance reduced to Rs. 0.

3.       I suspect it is because the 2GB free day time data has been consumed by me and then I got charged as per 10ps/10kb.

4.       I would like to know why there is no mechanism to warn customers when they are about to cross the free data limit and are about to shift to 10ps/10kb plan.

5.       Few of my friends and even I used to get the pop screen message mentioning my session details and remaining data usage from my data pack every time I disconnect my internet connection.

But now I don’t get any such sms/pop up screen messages.

Why this customer friendly feature has been stopped?

In case if it is technical glitch and temporarily unavailable, why it’s not been fixed on priority basis and why a backup solution not been provided to customers?

6.       When I have recharged for Rs. 148/- which includes 2GB day time and 2GB night time data usage pack, and when my day time usage is consumed,

i.         Shouldn’t I be informed about the same immediately during my running internet session instead of secretly switching to expensive normal 10ps/10kb plan?

ii.       Shouldn’t I be provided an option to utilize the night time data pack?

7.       When I call customer care seeking clarification and they are unable to provide me details because its not updated yet in system or their complete system is down,

i.          Shouldn’t my complaint be still at least registered by them?

Currently, in such scenario, they don’t register any complaints stating reason of system is down and they don’t keep any record of my call or my intentions to call them.

ii.       Shouldn`t they call me back whenever they are ready with my details or ready with a working system?

Currently they ask customer to call about the action taken back even though it was their inability to provide solution in first call by user.

8.       Since Idea sends lots and lots unwanted spam message everyday to every customer, why cant idea send informative messages to customers to educate and inform about IVR short codes, to check talk time balance by themselves, to check data balance by themselves so customer can track balance and proceed with usage accordingly?

 Tadka Take 2

Data usage pop-ups is one of the best and most convenient features that Idea provides. It is strange that the Idea chose to do away with or simply be careless with the most consumer friendly feature of its product. Is it callousness? Or they don’t take their consumers seriously enough?

Either way, this just goes on to show how  easy it is for the consumers to lose money to the Brands.

The data usage is a grey area for most companies and checking remaining talk time or balance is a perpetual trouble with most providers. One cannot help but wonder if it is a deliberate design to cheat consumers?

Internet is increasingly becoming a necessity for most section of the urban populace and it is high time that the concerned authorities take note of the consumer resources that go down the drain availing sub-standard internet services in India with absolutely no transparency or accountability of any sort. The consumers also need to stop shoving these issues under the carpet and voice their concerns as loudly as possible just as Aditya has done in this case.

Meanwhile, Idea Cellular, do you have any answers?

(Picture Credit : Topnews.in)

iPhone 5 Effect! Unraveling Apple–The Brand That Every Brand Should Aspire To Be!

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iPhone 5 Effect! Unraveling Apple--The Brand That Every Brand Aspires To Be!

iPhone 5 Effect! Unraveling Apple--The Brand That Every Brand Aspires To Be!

Those rare times when you feel alienated in your own office!

Thank You iPhone 5! Me and like minded technologically challenged buddies across the country (bless your souls wherever you are soul sisters) curse you forever for this brutality!

But then I figured that there actually are no soul sisters around to do me the favors.

Everyone and their grandmothers right now are totally, completely, wholeheartedly trapped in the iPhone 5 bubble.

For most, it doesn’t matter if they ever owned an iPhone or not or if they really ever will own one. Heck! even people who can’t operate a smartphone to save their lives are making it a point to discuss this ‘grand’ event.

The techno geeks (like the ones in my office) are busy dissecting the technical specifications to the minutest detail with words like features, OS, “nano SIM” (‘nano’!?), converters and a couple of other incomprehensible mumbo-jumbo liberally thrown in.

For those who don’t care for the technology (or can’t), still choose to go ga-ga over how slick and smart and light and  ”thin” is the iPhone 5, fascinatingly judging all of the above from a mere picture or some stray video. Of course, all of the above is true, certified by a couple of thousand posts and reports strewn all over the cyber world. But, I choose to reserve this sort of distance fueled infatuation for good looking guys on my telly screen; NOT for a little black box launched in some faraway land, the “classy” factor notwithstanding.

Don’t get me wrong! I absolutely admire Apple and everything it does.

If this makes you happy, it by default includes iPhone 5.

Its just that my reasons for admiration are slightly different.

I admire Apple for the kind of Brand loyalty it inspires, for the kind of love it has sustained, for the kind of obsession it has fueled over the years without fail.

I admire Apple for being the Brand every Brand should aspire to be.

In a fickle world of rapidly changing consumer loyalties, if a Brand continues to elicit confessions of true love from across the world, every single time it steps into the market– it must be doing something very very right!

Apple symbolizes the technological glory of the modern world. Every product it launches, encapsulates the ultimate human aspiration in terms of innovation and luxury. Of course, innovation is the root of it all and Apple continues to ride on the fact of being one of the first innovators in the market.

But, the fact that it has sustained itself, more or less unblemished, despite the competition, merits  adulation which it rightly receives.

And this is not about the products–or quality. Definitely not.

As someone pointed out on Twitter, even if Apple sucks, we would still love it to bits!

iPhone 5 opened up to mixed reviews. Refraining from delving into the technical debate storm raging all over, all we want to say is that competition is getting there and Apple is playing the catch up game , which in itself says a lot about a Brand that had thrived on innovation and first-mover advantage.

But, Apple evokes emotions, the single most important factor behind every sustainable success. As a great man proclaimed in the Indian Telly world–jab dil pe lagegi, tabhi baat banegi!

There is something about Apple that tugs hearts across the world and that is an achievement, really hard to replicate.

For all the innovations, experiments and wonders that rivals come up with, the world still stirs, debates and waits with bated breath for Apple’s launch of iPhone 5.

Till the time, another launch of another product forces my elderly aunt in an obscure, interior part of this country to inquire about it, I will safely say that Brand Apple remains untouched, market dynamics be damned!

Note To Brands: This is how it is done!

(Picture Credit : theverge.com)

Appalling! Today Group’s Bagittoday Refunds Payment For Fake Diamonds Only Upon Issue Of Arrest Warrants!

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Complaint against Bagittoday and Today Group, Consumer Gets Refund For Fake Diamonds

Complaint against Bagittoday and Today Group, Consumer Gets Refund For Fake Diamonds

Tadka Take

Appalling stories of cheating brands are fairly common in our world. What is rare is a fascinating story of a consumer who fights for his rights and sees the end of it, without giving up at any point.

Anything which involves courts, judiciary or related rigmarole is a strict no-no for most people in this country.  And consumer forums, by virtue (or vice) of belonging to this family seem to have inherited this untouchability. This despite the fact that consumer forums by far are the most friendly courts in the country with probably the simplest procedures.

As the general hangup continues to haunt the consumer world in the country, it is heartening to come across consumers who were willing to look beyond the perceived hassles and actually take up an issue is the forum with a successful outcome.

Mr. Navindu Singla, was one such consumer, who with a little help from Akosha, ended up securing his due and his rights.

Consumer Story

Mr Singla has been a regular subscriber of India Today for the longest period of time. Loyalty richly rewarded, he received a call from a Today group executive, stating that he was their “premium” customer and has become eligible for an offer under hich Rs. 30,000 worth of diamonds were being given out for half their price, that is, 15000, through its entity Bagittoday.

An offer too good to refuse, and also relying on the reputation that Today group and consequently, Bagittoday enjoys, Mr. Singla, immediately made an online payment for the same. The diamonds arrived along with some free gifts that were approximately worth Rs. 3000 or so.

However, when he got the diamonds checked, much to his horror and dismay, he found that the diamonds were actually fake, with a worth of not more than Rs. 500.

Appalled at being cheated, he immediately called up the Bagittoday’s customer care, demanding a refund as per their policy. As expected, he was greeted with a very rude response, saying that he can’t buy or refund the stuff at will.

In Mr. Singla’s own words, he wasn’t really flustered by the monetary loss. But what really bothered him was rudeness and nonchalance with which the staff of a reputed group like Today behaved with its customers.

This was the point where he came across Akosha. Akosha sent out a letter to the group to no response.

A complaint then filed with the consumer forum. Despite repeated notices, the Group chose to ignore the proceedings and did not make an appearance. An ex-parte order was then passed, ordering the Group to refund the entire amount.

Ironically despite the order, the neither Bagittoday nor Today Group responded. It was at this point, a really and justifiably annoyed Singla, in consultation with Akosha, sought the execution of the order and got non-bailable warrants issued against the CEO of the group.

This extreme step finally evoked a response and the company’s lawyer got in touch with Mr. Singla, which was promptly followed up by payment in full. The flustered Today Group did not even bother  to take their stuff back before refunding  the amount, leaving a relieved Singla with both money and goods (not that diamonds were worth anything but there were also some other gifts, which at least had some value).

Tadka Take 2

There are a couple of remarkable highlights in this story. The first one being the universal fact of reputed Brands cheating/harassing/tormenting their consumers–as an acceptable routine, with a discomforting nonchalance. When someone like Today Group resorts to consumer harassment, it is disturbing at more levels than one.

But then again, going by the number of complaints that flood our elder siblings at Akosha against Bagittoday, it doesn’t really look like Today Group takes its reputation too seriously.

The second and the more important point here was unruffled mistreatment and mis-behaviour by company personnel. Last we checked, customer care reps by job description are supposed to be polite.

But then, may be we reside in different worlds.

And it is this rudeness which irks most consumers (as Mr. Singla also pointed out) more than the actual loss or act of cheating.

Now, only if companies realized how effective polite customer care could be in cutting down their litigation costs.

Highlights aside, the moral of this story is fairly simple–Consumer forums do work, if approached right and with conviction. There is help out there, only if the consumers were willing to step up and claim their rights.

Stop shoving the issues under the carpet just to avoid some inconvenience. Raise your issues because unless you do that, there is no hope of them getting resolved as they deserve to be.

Bombay Times, Were You Just Vibrating? Its Volkswagen, Folks!

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Bombay Times, Were You Just Vibrating? Its Volkswagen, Folks!

Bombay Times, Were You Just Vibrating? Its Volkswagen, Folks!

This is one of those rare times when I really miss being in Bombay..erm…Mumbai!

Most of those times are NOT because of a newspaper ( notwithstanding the fact that more often than not news in Mumbai seems to be spelt out as g-o-s-s-i-p!..and boy! who doesn’t love a juicy bite!).

But Bombay Times did it…with generous amount of help from a certain classy automobile brand that challenges my cognitive ability by spelling itself with a V and be pronounced with an F.

On a side-note, the F and related words are somehow very relevant to this story.

Oh no, I am not being diplomatic nor do I have any intention of withholding Volkswagen’s name for any reason. We are a way too sadistic when it comes to Brands and when a Brand goes into intellectual self-destruct, every fiber of this platform literally erupts in joy!

I just thought some drama was completely warranted before the introduction of a Brand that seems a little too fascinated with it.

Drama! Of course. What else would justify a vibrating piece stuck to the back of my newspaper ostensibly advertising an automobile!

What! Pray, what exactly was the intent?

What exactly does Volkswagen stand for that can only be conveyed by a vibrating thing?

Seems like most part of the intelligentsia and not so intelligentsia are asking the same question.

Maybe they took ‘tentalizing’ a bit too literally and…um…physically!?

If the intent was to convey the thrill, a scared squeak and a newspaper flung a couple of miles away was hardly the way to go.

If pleasure was the intent (yes…the mention of this specific emotion is deliberate, very very deliberate)…I can’t imagine the kind of advertising team that actually put their head together to come out with this!

Were they high on Sunny Leone’s recent ad outings?

Bombay Times, I have been a big fan. I have always adored your gut, spice, sense and of course, your USP–sensuality. But this time, you have actually surpassed yourself. For once I don’t know whether to admire your guts or be mortified by the thresholds you cross for the sake of sensationalism.

Kudos! You set standards and scandals with equal ease.

But in the end, the “innovative” team has the last laugh. The cyber world is flooded with response that ranges from of ROFL to indignation to pure horror. If the ultimate objective of every advertisement is to evoke a response, this one was an earth-shattering success.

Don’t believe me? Check out the Delhi twitter trends.

Bombay Times is trending in Delhi!

(Picture credit : free-hdwallpapers.com)

 

3 Things That Can Go Wrong With Online Shopping And How To Avoid Them!

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3 Things That Can Go Wrong With Online Shopping And How To Avoid Them!

3 Things That Can Go Wrong With Online Shopping And How To Avoid Them!

E-commerce is the latest catchword in Indian consumers’ world. Online shopping is a phenomenon that is fast catching up with the masses. And why not? It is fast, convenient and most importantly, cheap. With heavy discounts, attractive schemes and offers, online shopping is evidently the best bet for the rapidly emerging net savvy generation of Indian consumers.

We have nothing against online shopping as a concept. As a matter of fact, we love it. In an ideal world, it is by far the most consumer friendly system that has emerged in the recent times. Unfortunately, “ideal world” here is the operative phrase, completely inapplicable to the part of the world that we live in.

Undoubtedly, we as a country have evolved and it is only because of this remarkable progress that we have witnessed the emergence of e-commerce in India. However, we are still evolving and in this transient state, not all systems in the country are sufficiently equipped to ensure a smooth consumer experience when it comes to online shopping. Our legal system does not have enough safeguards or systems in place to address issues like identity theft, unfair credit charges and other such problems which are essential ancillary issues that are associated with online shopping. We had highlighted a score of such issues in a previous guest post Ebay-An Online Grey Market.

In such prevailing circumstances, caution is a consumer’s best safeguard. While we understand that it is not practically viable solution to completely do away with online transactions, it is always advisable to the consumers to exercise additional caution with online transactions.

Based on the numerous complaints that land on Akosha’s desk every week, we have listed below a couple of most common and/or outrageous issues that are faced by consumers with respect to online shopping.

What You See Is Not What You Get — My mother inevitably refuses to buy stuff for me in my absence. “Try before you Buy” is an age old piece of shopping common sense that has been completely done away with by the online shopping phenomenon. And unfortunately, it is not always for the best. The delivered product being different from the one displayed on the website is the one of the most common complaints that we get when it comes to online shopping. The issues range from substantial variation in physical appearance to delivery of product that is of a different size then ordered. In one of the extreme instances, a complainant who approached us had ordered a Nikon Coolpix but the portal delivered him a Nikon L23, a completely different product. A lot of complaints also involve delivery of defective/broken products.

The consumers at large can take heart in the fact that this happens with consumers across the globe and is a necessary evil that may or may not befall on you depending on how lucky (or unlucky) you are. What an average consumer can do is to exercise utmost caution, buy only from portals that generally have a good reputation (user reviews though not always fair, still give you a good idea of the general reputation) and read the policies of the portal carefully before ordering.

 Unfair Refund And Replacement Policies — Unfair as it may sound, most online shopping portals tend to charge the consumers even for the issues that arise solely on their end. The charge is not direct but the consumers are supposed to bear the cost of shipping the defective product back if they want a refund or replacement. It is almost like a double whammy for a consumer already harassed by wrong delivery of products. In cases of refund, quite a lot of portals have an unreasonably long duration in which they process the refund, if at all. As a harassed consumer rightly pointed out, in the times of online money transfer , where a consumer can pay the portal in a couple of minutes, the portal needing 7-21 days to refund that very amount is beyond any logical justification. 

As we mentioned before, delivery of wrong/defective product is an inevitable fallout of a concept that has done away with physical trial or testing products before finally buying them, a lot of trouble can be avoided if you study the refund/replacement policy of the shopping portal in question carefully before deciding to buy anything from the m. Avoid portals that have too complicated or long winding refund procedure. Also, take note of the fact of who is responsible for paying the shipping cost when the product is returned. While this may not be viable at all times, as far as possible try and choose a portal that does not impose the shipping charges of returning a product on the consumer. The consumers should also pay close attention to the time span required by the portal to not only deliver your order but also process the refund/replacement if such an instance arises.

Promotional Scheme Alert! — Promotional schemes and attractive discounts are one of the biggest attractions of online shopping. And undoubtedly, more often than not, the best deals are available online. But consumers need to be vary of schemes that seem too good to be true. As happened with one of the consumers who filed his complaint with Akosha. A prominent online shooping portal offered him diamonds worth Rs.30,000 for half their price. Too good to be true but the consumer fell for it. When the diamonds arrived, the consumer figured that they were not even worth Rs.1000. 

The consumer in question eventually succeeded in getting a refund and compensation through a consumer forum. But not all of us are that lucky or persistent. It is best for an average consumer to let a dream scheme be just that—a dream scheme.

 

It is not our intent to scare the consumers away from online shopping. As we mentioned before, we love it as a concept. But what we do intend to highlight through this list is the number of issues that are inherent in the system which may surface anytime to haunt the consumers. All that consumers are required to do is to exercise a little more caution than an average shopper, read and understand the relevant policies and do a background check for the portal’s reputation before taking the plunge.

Most importantly, as far as possible, opt for cash on delivery. That is one sure shot way of retaining control and ensuring that your grievances, whether about a late delivery or wrong one, are redressed. This way, even if the grievance is not redressed, the financial hassle is conveniently avoided.

(Picture Credit: techgadgets.in)

Warning-Customer Care Horrors Ahead! How Aircel Store Treats Its “Valued” Consumers-A True Story.

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complaint against Aircel, customer care horror story

complaint against Aircel, customer care horror story

Important: We are running this story for one simple reason–we have faced this and we are sure you would have too if you have ever tried to approach any customer care store in India. This story simply highlights the importance of consumer awareness, is a positive reinforcement of the consumer power and the fact that one aware and really really angry consumer can uproot a brand, only if he bothers to stand up for his rights.

Tadka Take

Ashish Tulsian’s tale was a story waiting to be told. Well, he did a pretty good job himself, creating enough furor over every controversy’s favorite gestating ground–twitter.

We still thought it was a story where devil was in the detail (or not depending on the side of spectrum you are looking at it) and since Consumer Tadka has made a hobby out of courting the devil when it comes to brands, this was just the fodder for us.

So as I said before, the story was waiting to be told. Only that the wait went a bit overboard. In my defense, I was trying to figure the best way to narrate this extremely interesting story  (which is a mild way of confessing my chronic procrastination.)

The trigger which eventually prompted this story to be finally put up was my own experience at the local customer care center of Idea. The sickening sarcastic smiles, the condescending manner, the cool disregard–everything about the customer care staff in this so called head office reminded me of the Ashish’s experience. I did not have a particularly unsavory experience in the store, mostly because I did not stay there long enough. But even my short stop over at the store was troublesome enough to trigger a separate story (which I will definitely put up…erm… next time when my procrastination lets up!)

(The real trigger of course  and as always was a “gentle” reminder from the powers that be. But I am feigning partial amnesia for that part and shall stick to my story as far as the trigger is concerned!)

Trigger tales aside, talking to Ashish was a singularly engaging experience not just because his story was extremely entertaining but also because it is consumers like him that hold hope for the consumers as a whole. Consumers like him who really, truly and literally fight for their rights (in Ashish’s case, remarkably without losing the sense of humor) and actually make brands realize the power a single consumer can wield, if he wants to (I am really tempted to quote the great Nana Patekar here…but shall pass in the interest of the sanity and standard of this platform.)

Below is an abridged version of the story Ashish narrated to me.

Consumer Story

Ashish had gone to this Aircel store, looking for an iPhone and to inquire about their 4S scheme. Upon reaching the store, he realized that there were at least 2-3 customer care counters in the store but only one of them was actually manned by a customer care representative who was already busy. There were at least 7-8 customers who were waiting in line. Ashish asked the guard as to how the store managed the customers, was there any token system to maintain the order (which is a usual practice) etc. The response was pretty rude and he was told to wait for 10-15 minutes. Ashish was willing to wait for 15 minutes but wanted to know what was the system they followed, where were the rest of the representatives and why were other counters empty? A rude telling off was all he got as response.

Ashish had already begun to lose his temper when a not very visible door of the backroom opened and he noticed 4-5 of the store employees having tea there. He called out to them, asking one of them to come out and attend the waiting customers. The door was banged shut in response, adding to the already soaring temper of Ashish who was left “feeling like fool”.

An angry Ashish turned to the only available employee, seeking explanation for this kind of rude and inconsiderate behavior of the store staff, to be greeted with even worse behavior from the man. The brusque behavior of the employee continued driving Ashish to the verge of as he puts it  ”maar-peet” . On cue, the door of the back room opened again and much to Ashish’s shock, there were not 4 but 8 people snacking in there while their customers waited to be attended outside.  Surprisingly, none of the other employees bothered to stop the rude talk  by their colleague, clearly enjoying the show.

Ashish urged the other waiting consumers to speak up. The matter started gathering heat. The man of the moment quickly realized this and reacted by huffing out of the store, but not before throwing his badge away and saying that he was “off duty”. The smile was unwavering all this while as was the condescending attitude–a common denominator for all the employees of that store. Surprisingly, none of the store staff bothered to actually figure what was wrong and were busy asking Ashish, “aap chilla kyun rahe ho?”

The man of the moment was saved by a whisker because the next employee who misbehaved with Ashish (he told him shut up–the costliest shut-up he would ever utter in his entire life!) was rewarded with free publicity he could have easily done without–a picture on twitter.

complaint against aircel

complaint against aircel

The manager appeared on cue and on being asked where was he till now, very wisely replied that he was “listening” to the ruckus. Ashish demanded his card and was promptly refused.

The follow up to this tale turned out be even more interesting. After his tweets, Ashish got a call from our man of the moment, Akhil Joshi who was still  relentless in his pursuit of setting standards of misbehavior. So Mr. Joshi who, in Ashish’s words, was still interesting told him that he has been asked by his seniors to apologize.

Toh kar“,  said Ashish.

The response was epic. “Aap kahoge toh kar lenge, par waise lagta to nahi hai ki karna chahiye!” (I will apologize if you will say so but I don’t think I should.)

Ashish tweeted again and the response was a sugar coated call from the customer care head who was willing to offer everything from apology to iPhone without even realizing that Ashish was not a “valuable Aircel customer” as he claimed. In Ashish’s words, “valuable hoon ya nahi ye toh pata nahi, par Aircel customer to bilkul nahin hoon“.

Ashish predictably declined the iPhone offers which came pouring in with every apology call he got and demanded action. He was assured that erring employees have been removed but Ashish wanted to be kept in loop for every so called action.

Tadka Take 2

The outcome notwithstanding, what really irked Ashish was the cool disregard with which the store employees behaved, their demeanor screaming of their assurance that nothing will happen no matter how huge a ruckus is created.

Ashish’s experience is a mere reflection of the dismal customer care situation in India. What happened with Ashish routinely happens with more consumers than we would be comfortable counting. The only difference was the fact that Ashish raised his voice and in turn got his due, most of us don’t bother.

The most striking feature in this entire incident as Ashish noted was the fact that everyone in Aircel was extremely sorry, without actually knowing what they are being sorry for!

Everyone in Aircel was extremely sorry, without bothering to check the number they are calling at, without bothering to actually check ‘minor’ facts like whether or not Ashish was an Aircel consumer or not!

Everyone in Aircel was extremely sorry, except that one person who should have been actually sorry (who actually believed and said that there was no need for apology)!

And this probably summarizes the cause and effect of all issues pertaining to customer care in India.

Warning-Tangential Tutorials Ahead!—Ek Tha Tiger Lessons In Consumer Satisfaction

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Warning-Tangential Tutorials Ahead! Ek Tha Tiger Lessons In Consumer Satisfaction

Warning-Tangential Tutorials Ahead! Ek Tha Tiger Lessons In Consumer Satisfaction

What can a bollywood ‘no-brainer’ teach the ever vigilant, ‘way too well informed’ brands?

Apparently a lot, especially if the no-brainer belongs to Salman Khan.

I have always believed that movie audience is a discernible set of consumers—and by the looks of the power they wield over the success of the end product, by far the most empowered ones too!

Not that this theory found much support or else Consumer Tadka would have had a regular review section, for once offering a legitimate justification for my unrelenting movie/TV frenzy!

But it was not to be and my gleeful suggestion was promptly struck down, in the process, doing absolutely nothing to wean either my conviction or frenzy.

Armed with my conviction and my mother, I landed up at a show of Ek Tha Tiger in the local multiplex. A little late in the day but at least I made it and oh boy! what power boosters it had for my theory.

If this were a review site, I would have been one week too late for talking about this Salman Khan , as always predicted blockbuster. But this is not and when it comes to handing down lessons to brands in any context, Consumer Tadka believes time is definitely not of essence. And to quote (though completely out of context) the ominous but well meaning boards on the winding roads of a hills station I last visited, its better late than never.

Ek Tha Tiger, from the first frame itself had some valuable lessons for the brands in the country—and so I took it upon myself list a out a couple of precious tips that ever so generous Salman Khan offers, albeit unknowingly.

Now only if the brands were willing to listen!

Goodwill Matters, Consumer Loyalty Matters And Whether You Admit It Or Not, Every Satisfied Consumer Translates Into at least 3 If Not 10 More Consumers— Looking at my mother who gushed the moment Salman Khan made his lavish appearance on-screen would have led anyone to believe that she had been a die-hard Salman Khan fan since forever. But, that is hardly the case. Her love for Salman Khan is a pretty recent phenomenon but the consequences have been momentous. Every Salman Khan release is now a pious occasion, to be given due allegiance by every willing/unwilling family member, dutifully being dragged with her to the first show she can manage to watch.

This a capital realization that somehow fails to dawn on most brands in India or else customer care would have been a completely different story. A happy consumer is an asset every brand needs not just because it saves the hassle and ensures loyalty, but also because it means inevitable and obvious word of mouth publicity. And in a country like India where inter-personal relations are extremely dominant and people believe in seeking peer opinion on even the  Hawaii chappal they wear, this factor becomes even more crucial.

Deliver What You Promise And You Can Do Without The Gimmicks—In a country where  it was once believed that only sex and SRK sell, Sallu Mian went ahead and sold his product without either. To top it, he did it without any intellectual hassle of unnecessary frills like a good intelligent (!?) script!

Not venturing into the Khan wars, the simple lesson that lies here is that delivering what is promised is the crux of a successful brand. Salman Khan doesn’t promise intelligence. He doesn’t promise cryfests. He doesn’t promise stimulating content. All he promises is masala and delivers big-time. Junta is happy!

Ek That Tiger is the case in point. It was never packaged as a stimulating spy movie nor was it promised as a bolly-version of Tom Cruise magnum-opus. It was a Salman Khan fest—mindless action, slick locations and some dialogues (‘-isms’ as we call them) worth repeating and tada! the sure shot success formula was ready.

For all those who went looking for a sizzling chemistry, Sallu Mian managed it with a few benign hugs—the message being loud and clear, for more go check out the flicks with porn chicks. But junta doesn’t complain—a very clear validation of the theory of reasonable consumer expectations. Consumers behave reasonably, in fact, way more than reasonably if brands are true to their core promises.

If only the brands understood that I (or for that matter any consumer) wouldn’t care if I get an expensive set free or not, so long as my telecom services worked smoothly, were fair, did not overcharge and resolved my issues promptly as and when they arose.

Unfortunately, most brands tend to bank on frills to attract consumers, completely ignoring the fact that consumer happiness is directly proportional to the core delivery of the brand and not associate gimmicks. To put it differently, gimmicks may trigger infatuation but a sustained love affair is ensured only if the core promises are kept (which by the way is the most important relationship advice that can be given to anyone—now only if this were a relationship blog)!

Consumer Is The King And Classless. Cater To The Masses And Pay Due Respect—It is an utter delight to sit in a multiplex, the presumed haunt of the sophisticated lot and be treated with whistles and cat-calls. For me, this completes a movie experience.

If I were not an eve or if eve-teasing were not this big a concern, I would have never ever watched a movie but from the stalls of a single screen theater, the heart of the reactions that really and truly matter.

Forgive the pun. It was just to register my extreme discomfort with the frivolous terminology bestowed on as serious a concern as molestation.

Back to the point, Salman Khan unabashedly caters to the masses. So much so, that he brings out the masses that have conveniently hidden themselves behind false veil of acquired class. He is the one who can ring a multiplex with whistles—a feat which is actually not easy in a society that thrives on it pseudo class consciousness. His movies don’t distinguish between multiplexes and single screens. Nor does he disrespect the section of the society that constitutes the majority in the country. He offers them the best—best budgets, best locales, lavish films and at the same time caters to their sensibilities. In other words, his movies pay due respect to the masses and do I need to add that they are richly rewarded would be a gross understatement.

This is a point of realization that is extremely crucial for every brand in a country like India where more than half the population is still grappling for basic necessities. True that every brand has a target group but a conscious effort to be more masses-friendly will broaden the target base and eventually benefit the brands in the long term. I certainly do not suggest that brands should give up their niche. But, it hardly takes too much effort to be more friendly and approachable for the masses, especially considering the fact that in India, a large section of consumers for most brands that do not exclusively belong to the luxury section will be the ones who may not exactly be the niche crowd. Increasing approachability will only strengthen a brand at the grass-root level—a formula for sure shot long term success in India.

Sallu Mian may not be India’s answer to Steve Jobs nor does Ek Tha Tiger has the potential to be the next case-study for management students at IIM. But, not everything was born in a management institute. Salman Khan’s success is borne out of common sense or rather application of it. The points elucidated above wouldn’t be too hard to comprehend or for that matter apply, only if brands bothered to look closely enough. The bottom-line is whether the brands like it or not, in a competitive market, what ultimately separates an average success from a stupendous one is just one underlying factor—consumer happiness.

Don’t believe me—check out the trajectory of the rise and rise of Salman Khan!

(Poster Credit: tanqueed.com)

4 Things You Must Know About Your Banking Transactions!

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4 Things You Must Know About Your Banking Transactions!

4 Things You Must Know About Your Banking Transactions!

Banking transactions have undergone a massive transformation in last couple of years. Gone are the days when people had to stand in queues in front of the teller for hours for even minor transactions. Gone are the days when customer care in banks meant one lonely counter, manned by a harassed employee flooded with issues that took days, weeks or even months to be resolved.  Most of the transactions are now just a click away and customer care services by banks are available 24X7, manned by fairly capable representatives who can offer immediate solutions/advice to consumers.

The capability of customer care services may actually be a point of debate. But a fair comparison with the situation that existed before the technology revolution actually took over definitely merits appreciation for the new and improved version of the banking facilities in all their forms.

However, like with everything else in this country, this improvement too comes in with a rider. The rider that warrants the consumers to keep themselves abreast of the developments and their corresponding rights.

In our endless quest of seeking out the quirkiest, strangest issues of the consumer world, we landed on the following crucial things that a consumer must keep in mind while dealing with their banks. Most of these points are fairly straightforward but ignorance of these simple things can at several instances rile up consumers in disproportionately complicated troubles.

  • Always Insist On Personalized Cheque Books- Or you may find yourself in such unsavory situations that are beyond explanation in normal circumstances. A couple of days ago, an Akosha regular narrated to us an incident that suddenly made us realize the extreme importance of personalized cheque books. This particular individual had realized that the cheques he had sent out were being regularly cashed without a single penny being deducted from his account. A closer enquiry revealed that the amount was being deducted from some other unsuspecting consumer’s account in whose name the cheque book was originally issued but was handed over to this individual mistake. A capital mistake which can be easily avoided if the cheque book carries the name of the account holder. While most of the banks these days do issue personalized cheque books, there still may be instances where your cheque book is not personalized. Be very careful and vigilant. Return such a cheque book immediately and insist on a personalized one.
  • Deduction Of Fine For Non- Maintenance Of Minimum Balance From An Account Holder’s Account Is Not Allowed Without Due Information Of This Term To The Account Holder-How many times have you bothered to check what is the minimum balance requirement of your account? Or more importantly, how many times have your bank actually and specifically told you about this term? Next time-pay attention. Because if your bank has not specifically told you about this term, they cannot automatically deduct the amount from your account. Banks cannot debit fines for non-maintenance of minimum balance from an account holder’s account without informing the account holder about this term. As a logical extension of this condition, no amount can be debited from an account holder’s account at the bank’s discretion without hearing the account holder. It is the responsibility and obligation of the bank to ensure that proper hearing opportunity is given to the account holder.
  • Don’t Just Read The Fine Print, Be Vigilante About It- This is probably the most common advice that is given and yet the most ignored one. In the context of banking transactions, this advice becomes extremely relevant when consumers involve themselves in transactions like taking home loans.  In all such cases, just reading the fine print is not enough—what is important is being extremely vigilant about the terms and be very careful lest the terms are violated. One of the most common complaints that we receive against the banks includes revision of interest rate without prior intimation, even though all standard contracts in this regard usually provide for a mandatory intimation to the consumer whenever there is a revision of the interest rate. If such an instance arises, notify the nodal officer of the concerned bank immediately and if the issue is not resolved, take up the matter before the Banking Ombudsman.
  • Have A Grievance, Get Them Redressed The Right Way- Redressal of complaints concerning banking transactions is a fairly confusing area for most consumers. In the event any such grievance arises, the consumers should immediately take it up with the concerned branch manager. Alternatively, or if the issue is not redressed at the branch level, the matter should be taken up with the Nodal Officers of the concerned bank who are exclusively designated to address consumer complaints. The Banking Ombudsman can be approached if the bank rejects the complaint or does not respond to it within two months of filing the complaint with the bank. The complaint can be taken up before the Ombudsman only if written representation was made to the bank and either the bank had rejected the complaint or no reply was received from the bank within 60 days of receipt of complaint or in case of unsatisfactory reply received from the bank.The Banking Ombudsman should be approached within one year of the bank rejecting or not responding to the complaint. The award passed by the Ombudsman is binding on banks but not on the consumer. It is only the bank against which such an award can be enforced, not the consumer.

We have attempted to list out and address a couple of issues that are a common cause of grievance and/or confusion for the consumers when it comes to banking transactions. Banking sector is one of the fastest evolving sectors in the country trying to sync itself with the rapidly evolving technology. While on one hand this has made banking transactions way more consumer-friendly, it also comes with its own set of issues and complications. In order to avoid hassles and ensure optimum benefit from these evolved systems, consumers need to keep themselves abreast of the changes. Consumers should make it a habit to read the documents and their bank’s websites carefully. Timely redressal of issues is the best way to avoid unnecessary hassles and this can be ensured if the consumers are careful about their rights and concerns.

4 Things You Must Know About Your ATM Card!

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4 Things You Must Know About Your ATM Card

4 Things You Must Know About Your ATM Card

ATM Cards or debit cards are by far one of the most convenient options that have been introduced to encourage cashless transactions. It is convenient, easy to maintain and an almost a direct replacement of cash. Unlike credit cards, which by design cannot and do not operate as cash, ATM cards are precisely designed for the purpose.

ATM cards or debit cards can do all that cash can do and much more. They are a perfect combination of cash and credit cards, imbibing only the positives of both. With debit cards being accepted in almost all sorts of online transactions, they can do what a credit card does minus the credit card’s drawback .They are limited like cash, acting as a good stop-cork for any unwanted expenditure that necessarily seeps in with the flexibility of credit cards. But unlike cash, they are easy to handle and way more convenient.

The benefits of ATM cards are countless making them one of the most preferred modes of transaction for the common man. However, Murphy’s Law is true for every sphere of life and debit cards are no exceptions. And with the kind of record that banking industry in India has when it comes to consumer issues, anything that can go wrong with debit cards will and does go wrong, leaving a set of extremely bothered consumers in its wake.

As always, we sifted through the complaints that landed on our desks and dug out the issues that were most striking and uncommon when it came to debit cards.

  • No SMS Alert For Transactions—We had never thought this could be this relevant concern till one of our complainants drew our attention to its implications and the regulations which deem this compulsory. RBI has actually issues express regulations that mandate that customers get SMS alerts for all transactions done through their debit or credit cards from June 30, 2011. These regulations are aimed at checking fraudulent transactions and encouraging usage of cards by customers. According to these guidelines by the Reserve Bank of India all lenders are instructed to provide SMS alerts for all card (credit as well as debit card) transactions irrespective of amount latest by June 30. This clearly implies that you must get an sms alert for every single transaction and if your bank fails to do so, you should immediately inform the bank and demand that alerts should be sent under all circumstances. This may hardly seem relevant in normal circumstances especially for debit card usage. But the procedure is in place for a reason and one should not ignore the instances of its non-compliances till some disaster strikes. As was in case of this consumer who had lost thousand of rupees by the time he realized that he had actually lost his card just because his bank did not send sms alert for the transactions his stolen card was being used for. While this seems an extreme case, it is a pretty probable one too and nobody should leave such issues to chance. Always remember that your bank has a regulatory obligation to send you those alerts and if it does not, you should take it to task.
  • Secure Online Transactions—The amount of money that is lost by consumers in fraudulent online transactions is humongous. This despite the fact that this is one of the areas where banks have always been uncharacteristically cautious. Not only express instructions/ warnings are issued to the consumers about not disclosing their pin number and other details on any website on a regular basis, most banks have also brought in the concept of 3D pins to ensure further check on fraudulent transactions. The consumers should themselves be extra cautious during online transactions. Make sure your 3D pin is generated as soon as you procure your card and keep it a secret. Furthermore, while making online payment through debit/credit card, ensure the transaction is secure. Look for https instead of http in the website’s name. The additional‘s’ stands for secure.
  • Lost ATM Card, Lost Money—What happens when you lose your ATM card? Apart from the partial heart attack of course. Well, you get your card blocked immediately obviously.  But then, if you still lose your money? Don’t be shocked. That is very much a possibility as had happened with one of the consumers whose complaint landed with us. In all such circumstances, where a consumer loses money via his lost ATM card despite informing the bank, the bank is held liable for the loss and is bound to compensate the consumer. In all such circumstances, inform the relevant authorities in the bank and if the issue is still not redressed, take up the matter immediately before the Banking Ombudsman.  Also, in case any such loss or theft, immediately file an FIR with police to establish the time of theft/loss. Also an added advice, if you ever manage to recover a lost/stoen ATM card, never ever use it again. Cut it diagonally and throw it away. Get a new one issues from your bank for a minor fee.
  • Money Lost In Transit– One of the most common occurrences during online transactions via debit cards or net banking services is losing money in transit. This happens when money gets deducted from your account but never actually reaches the seller’s account due to technical hiccups. In all such circumstances, such money is credited bank into your account within 5 working days of such failed transactions and if this does not happen, you should immediately take up the matter with your bank. Also, as an added precaution, if one transaction fails and the money is stuck, try and avoid attempting another transaction immediately. Most probably, the transaction will fail again and you will end with twice the money stuck in the system.

ATM cards are cashless and yet they are cash, the carriers of your hard earned money. Just as the responsibility of your cash lies with you, your ATM card and whatever happens to it is ultimately your responsibility. Be cautious, be vigilante and most importantly be aware of all the regulations and rights that are associated with debit cards. Ultimately for any consumer, information is the most potent defense and most deadly weapon.

Warning! Expecting 3.1 Mbps? You Are In For A Rude Shock! Customer Care Horror Story Of A Tata Photon Plus Consumer.

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Complaint against Tata Photon Plus-The Customer Care Menace

Complaint against Tata Photon Plus-The Customer Care Menace

Important: As always, we are running this story because we have figured that internet services and related issues are one of the most common problems that are more often than not left unaddressed. This exceptional consumer’s tale tells us how a little persistence can go a long way in securing justice and at the same time brings forth the horrid condition of customer care in India. Despite all his persistence, what Hari could secure was only partial justice and that summarizes the whole truth of the consumer concerns in India.

Tadka Take

There are some stories that absolutely need no tadka at all. Eye wateringly spicy is what defines the tale of this very persistent and assertive consumer. When Hari Charan approached us with his story through Facebook, we were already grappling with what we call the Aircel iPhone story (Read Warning: iPhone For 10,000! It May Not Be As Attractive It Seems!) aftermath. We were flooded with telecom ‘horror’ stories from every corner of the country (we still are and trying to figure the best way to showcase these stories without getting repetitive). But Hari’s story was unique for the sole reason of its astounding assertiveness and eventual though partial success.

Disclaimer: Much as you would like to believe otherwise, this is not a shameless placement for our elder siblings at Akosha. We swear their prominent appearance in this story is more of a co-incindence then deliberate design (the highlighting not so much…but then since when we claimed absolute sainthood!).

After all we can’t help it if they are involved with most exceptional consumer success stories!

Consumer Story

This is the story of How Tata Indicom screwed up a simple case of “we-regret-and-refund” into what could have been a major case for litigation.

I had an issue. They dragged it for 7 months before owning up. I threatened to sue them. They apologised and offered to waive off all charges and clean the slate.

Before we go ahead and read the entire fiasco – here are some “FACTS”.
The proposed 3.1 Mbps speed is only an indication of Spurt Speed – i.e. the system “might” jump upto 3.1 Mbps depending on the connection (and that includes a lot of fine-print conditions)
I was “guaranteed” a minimum 256kbps using the Photon Plus Device.
Their service in my area was really bad. (A fact that I came to know quite late)
As compensation – I wanted 10,000 bucks + waiving off all the outstanding charges + cancellation + 6 months of Internet from a rival organization as atonement for shitty customer service.
What I got – Waiver on all outstanding charges + Cancellation + Apologies.

(1) Long Long ago ( No ! Its not a dream, more like a nightmare)  I bought a  Tata Photon Plus connection in Chennai – Tambaram Sanatorium to be more exact. First week of October to be precise.
(2) The first month I experienced very poor connectivity. I did not measure the speed, hoping it was because I was accessing it in Peak periods.
(3) For a week in mid November – I tested the unit – in the afternoon – I got the same poor speed. This time I took screenshots. Not one of them exceeded 20 Kbps. Posted are some screenshots below.
(4) I first raised an issue on 26th November. My ticket number was 288043425. I was told that  the ticket would be resolved within 72 hours i.e by 29th November 2011, evening 6 P.M. This call I made around 4:33 PM to a lady called Swathi (Customer Care) who started by telling me that the issue was perhaps with my computer and and that I should restart my computer, clear my cookies and cache and perhaps even change my browser and use Internet Explorer, but later she did take my ticket.
(6) On 29th November, around 12 Noon, “I” called up the Tata Indicom customer care – actually telling them – that they should not close this issue without resolving it and that their SLA ended in 6 hours and they better have some good news.
(7) I was then redirected to a guy called Balakrishnan who promised to update me on the status by 29th November, evening – which of course never happened. They did close the issue though.
(8) I kept quiet – for about 2 weeks after which I decided to raise another ticket – 293270983. The “automated” email said that the issue would be resolved by 10-Jan-2012. It was in this call that these guys gave so much “gas” that they were working on “building a tower” (Adra sakka !) in the area and that it would take upto January 1st week to see some results.I said to myself , “Fine. Let’s see what happens.”
(9) You wanna know what happened ? This ticket was closed ! (Yayyy for Tata Indicom !) but only this time, the issue was not resolved. Yes ! They simply closed the ticket – without even informing me ! :) Say hello the customer savvy Tata Photon Team !
(10) Then I spoke to this lady called Jyothi – who asked me to mail customercare.tn@tatatel.co.in
(11) So, I wrote a looooong mail. It was a long mail by any standards. The text of which is reproduced below. Any self respecting company that employs individuals who attend to their customers with some empathy would know how to respond. But Tata Indicom, Of course not ! What do you think they are ? They are private agency that runs like a government office. So you know what I got ? A Template Response ! :)
The text of which is also reproduced below. (Second Yayyy for Tata Indicom !)
(12) I raised the issue again – via email – I got another Template response.
(13) However all this while, their Billing department worked absolutely efficiently, not failing to send me the bills promptly before the 7th of every month.
(14) Not only did they not send the Bills promptly – but whenever there was an outstanding for more than a month – they promptly called me – from their Hyderabad Office !! How’s that for promptness of service ? (Third Yayyy for Tata Indicom !)
(15) After Jyothi, It was my turn to talk to Neeraja, Shruti, Poornima, Shweta … Yup – All customer care executives – with no one having a clue about my open issue or my past issues. All that they wanted to do was to close the ticket so that the SLA is not breached.
(16) In the meanwhile, I had also raised multiple issues – 293270983, 302238311. All of which were closed, inspite of me literally “begging” the customer service person to resolve the issue before closing it. And you guessed it right ! They closed it anyway !
(17) I even had a visit from one of their technicians – HariDoss – who did the following -
Took Screenshots of the SpeedTests and sent it to his supervisor.
Restarted my system multiple times after clearing cache, installing and uninstalling Chrome and Firefox.
He installed an antenna like structure on the roof of my house, gave it a wire to my room and plugged my device into a socket from the wire. All this in the faint hope of resolving the issue. However, nothing worked.
(18) I mailed their nodal officer (Chennai) multiple times with my issue – Again Template Response !
(19) As a last resort – I raised the issue with Akosha – a third party agency – who take up issues on our behalf with the big guys in these organizations.
(20) Akosha tried hard twice – but there was no response from Tata Indicom team. Hence Akosha advised me to send a letter to Tata Indicom’s Customer Service Desk – Mumbai. They were nice enough to draft the letter for me, however it was too nice for all the running around I had done.
(21) The scathing letter that I wrote to their National Service Head – Mr. Jogesh Nayar – would have put any lawyer/head of department to shame. The text of the letter is provided below.
(22) Akosha even provided me with the receipt to indicate that the letter had been delivered. More than a week passed and still no response.
(23) I tried all sorts of techniques to get their attention – Twitter, Facebook, Emails – nothing could move them. They stood solid like a rock ! (Fourth Yayyy for Tata Indicom !)
(24) I went to their website where there was a provision to raise complaints – and I raised a Complaint again !! – Ref – M7727466
(25) Again I got a mail from one of their guys – Again another Template !! (Fifth Yayyy for Tata Docomo ! Looks like they never think beyond the Box..errr… Template)
(26) Then suddenly like a bolt from blue, I got a call from a Chennai based Collection guy – Don’t remember the name, who was more interested on why I was not paying up the money. He convinced me that he would resolve the issue and surprise of surprises ! – He never called again ! (How’s that for promptness ? Sixth Big #Win for Tata Indicom)
(27) Finally, I got to the point where there was nothing left but to send Tata Photon Plus a litigation notice, and just as when I was about to go ahead on this – Akosha advised me to wait for a couple of days.
(28) A guy called Arjun called me from the “technical department”. He went on harping about the issue was resolved in January itself (hunh ?) and that my connection was “barred” now because of non-payment of my April dues. I could do nothing but smirk. This was adding fuel to fire. I had to cut him off politely – because he was talking out of context. (I’ve stopped counting the Yayyy’s now)
(29) Finally yesterday – June 12, 2012 – Nearly 8 months after I raised my first issue and about 6 weeks after that letter that I sent to Mr. Jogesh Nayar, I got a call from Yuvraj working as an Assistant Manager with Tata Indicom’s Chennai Corporate Service Desk. He was empathetic towards my situation. Apologised profusely. Highlighted the issue at hand and worked towards getting a solution. He explained that the issue “still” cannot be solved (sigh !) and that I had to make a choice.
(30) The decision that I took was that the connection was to be disconnected immediately and that I will not pay any of the outstanding dues and bills and cancellation charges and lottu-losukku. He agreed and also mentioned that he would be the point of contact until this issue is resolved from my end and that I could call him anytime with respect to this particular complaint.
(31) He also mentioned that he was acting on behalf of his manager – who had sent him as an email – the concern that I had raised with their National Service Head. So the Akosha trick worked !
(32) He also accepted that this was a major loss-of-face and escalation and that he deeply regretted the fact that things had come this far.
(33) Today, I again received a call from him, confirming this issue + the subsequent reversals had been taken care of. A lady named Swapna (guessing her to be a Senior Corporate Manager) followed up on me with details of how things could have been handled and that they were sorry for having treated this so shabbily. They also said that they are taking up my feedback “strongly” so that immediate action could be taken.

Tadka Take 2

Brands not delivering what is promised is bad enough but a complete absence of any accountability or redressal is in mildest of terms plain, shameless cheating!

Hari had a couple of other interesting points, especially a very instructive and interesting list of suggestions for the brands which we will put up separately in a different post.

The crux of this story is simple–customer help is non-existent in India. Despite the fact that consumers are THE most important factor in any such industry, the companies continue to blissfully ignore systems that can make consumer grievance redressal at their level convenient and useful to any degree. One would be forgiven to believe that such system is a deliberate design to discourage consumers from pursuing their grievances. If that is the case, we are glad to have people like Hari around who are willing to endure and give it back to the brands in the same coin!

We are humbled — by Hari’s spirit to fight and Photon’s spirit to cheat!

(Photo Credit: Crazeal)

Do you have a similar story to share? Write to us at editor@akosha.com and Tadka will make sure you are heard!

4 Fantastic Things That Can Go Wrong With Your Credit Card (And You)!

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4 Fantastic Things That Can Go Wrong With Your Credit Card (And You)!

4 Fantastic Things That Can Go Wrong With Your Credit Card (And You)!

Remember Aladdin’s fabled genie? The one which fulfilled every wish of his master at the snap of a finger.  Or Nelson’s genie (this for the people who as grew up in the 90’s with a heady dose of cheesy translated versions of American Sitcoms)-the pretty lady in pink who was as desirable as the wishes she granted.

Credit cards always remind me of these genies. Fulfilling every wish like a dream. The only catch–instead of popping out of an old lamp, these pop out of banks and of course, the wishes they grant come with a price.

The concept per se is exciting, the inevitable side-effect of unwanted splurging notwithstanding. If utilized with basic sense and intelligence, these cards can be an excellent way to spread out our expenditures in a fashion that is convenient to our personal economics. Besides, these cards are extremely handy in emergency situations which may surpass immediate availability of liquid cash.

From downright luxury to absolute emergency, these cards are useful in more ways than one. And we like to believe that this was the primary motivation behind their design.

We can write pages praising the utility and value of credit cards in modern life. But any number of pages as ode to these cards cannot outdo the complaints that land up on our desk every week dealing with issues concerning credit cards.

Most of us are pretty much aware of the broad concerns. However, given the far reach of these cards, we thought it would be worthwhile for us to flag at least a couple of issues that are commonly faced by credit card holders, though not so obvious when it comes to common knowledge.

  • Reported in default list at CIBIL for card holders who actually never used/were issued a card in the first place- Imagine if one fine day, the authorities land up at your doorstep, charge you with a crime you never committed or even heard of and throw you in jail. That just begins to summarize what a consumer feels when he ends up in the CIBIL default list without any fault. One would think the best way to avoid any such trouble of ending up in a defaulter list is not get a card issued at all. But you would be surprised by the number of complaints that land up on our desks where the consumer either never got the card issues or never used and still ended up in the list of defaulters at CIBIL. The consumer in most such cases comes to know about his “defaulter” status only when he applies for a loan. The shock is palpable and the so called “defaulter” is clueless about the default, let alone the ways to redress the situation. How on earth this mix up happens is something we are still trying to figure. Mix of names for two consumers holding cards is to an extent understandable. But, what about the consumers who never ever got the cards issued in the first place? The only plausible explanation-the records are maintained in those rusty old files which were a common sight in 60’s movies and they end up being nibbled by house-rats. The concerned officials just guess the name of the holder from the nibbled records! We really wish we had a concrete solution to this fantastic issue but the only way ahead that we suggest is first approach the concerned authorities and if they don’t rectify their fault, drag them to the Banking Ombudsman with all your might.

 

  • Charging wrong bills- Another spin to above issue is when such amount is included in credit card charges which the consumer never actually spent. For instance, one of such complaint concerned a consumer whose account was debited with an amount for a telephone bill he never really owned! This may happen even for the non-credit card holders but for obvious reasons, credit card holders are more vulnerable of the lot. In all such cases, a formal complaint with the bank and approaching Banking Ombudsman if the issue is not redressed is the best course of action.

 

  • Non issuance of NOC (No objection certificates) even after the outstanding dues are settled-We would have thought that issuing an NOC (No objection certificate) is hardly a point of trouble. After all once everything is settled, how much does it take to issue one small official document saying this one is clear? And yet, for some inexplicable reason, consumers continue to face trouble when it comes to getting an NOC issued. For us, it is just a case of habitual red tapism that is so ingrained in every system in the country that it just refuses to die.

 

  • Recovery Agents Menace-Harassing recovery agents is one of the most widely discussed issues when it comes to credit cards. And despite the fact that consumer forums across country have been crying hoarse about the illegality of this awful practice (See the latest Delhi Consumer Forum decision Complaint Against ICICI BAnk Recovery Agents), it just continues to flourish. Recovery agents cannot, we repeat CANNOT harass you in any fashion and this includes verbal abuse, threats-physical or otherwise and even telephonic harassment. If they do, none of the consumers should take it lying down. Our legal system already has been condemning and taking action against this practice but it needs to know when this happens to be able to extend help. No legal measures can be successful unless there is awareness at the grass-root level and the individuals concerned are willing to stand for their rights. So even if there is slightest whiff of harassment, take up the matter before the consumer forum and raise a storm if you have to. Whether or not you are a defaulter is irrelevant. This is concerned with basic dignity of every individual and every consumer and nothing, whatsoever, can justify unwarranted harassment.

The list above has one important conclusion-if you are credit card holder, you should be friends with at least the Banking Ombudsman!

On a more serious note, the issues listed above are merely illustrative and are confined to the concerns which are either fantastic enough to be ignored as one off incident or recurrent enough to raise a concern or serious enough to be flagged for every concerned consumer. The issues that credit cards entail are way too vast to be covered in one single article and we will keep touching upon the issues in our subsequent pieces. However, the important take away from this list is the fact that no consumer should tolerate something he thinks is wrong just because he may be the only one troubled. The most fantastic of consumer issues sometimes are the most common ones and all one needs is to stand up and look around. What is crucial, as we have been reiterating since forever, is awareness and vigilance. For a world where consumer rights are respected as they should be, every consumer must have an awareness of his rights, vigilance to know when they are breached and courage to stand up for them when required.

 

 

 

 

 

 

Warning: Mac Users Alert! Think Before You Take That MacBook For Repair, You May Be in For Trouble! (True Story Of Harassed Consumer).

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Tadka Take

Important: Magali Vaz had a dream run with her MacBook Pro, but that only until the time she finally needed a repair. That was when the dream started turning into a horrifying nightmare. We decided to run this story primarily because it highlights some fundamental issues that are there with service for Apple products in India. While we realize that this is a one off incident and has more to do with the service provider than the brand itself, we still couldn’t get over the fact that an authorized provider can be a source of trouble for any consumer, however random the incident may be. And as far as the accountability of the brand is concerned, there is a reason why these service providers are called “authorized”!

Apple!

Did I hear a collective sigh?

Lets try again…Mac!

There!…I can see a whole bunch going weak in the knees!

Ok. That was exaggerated. But not as much as you would like to believe.

Apple and Mac are two words that spell much more than luxury in this new evolved techno-freakish country. They symbolize class in a way which is distinctly urban and distinctly, for the want of a better word “cool”.

But when something is wrong with that Apple? Yes, that Apple which has redefined technological aspirations. That Apple which has a whole chunk of crazy junta going all orgasmic by its mere sight!

When something is wrong at that Apple’s front, ears are bound to perk up. Given the huge amount of money that consumers spend on their Apple products, it is imperative for us to highlight any shortcoming on Apple’s front–as a word of caution for everyone harboring the great Apple dream.

Magali Vaz had a dream run with her Macbook Pro, but that only until the time she finally needed a repair and that is when the dream started turning into a horrifying nightmare. Below is Magali’s story in her own words:

Consumer Story

I’ve had such a horrible experience getting my Macbook Pro serviced at Maple Digital Technology (Apple Authorized Service Provider) in Mumbai, that I had to share this here in hopes that it will help anyone else in Mumbai who needs an Apple product fixed to make the right choice.

 I’ve had my Macbook Pro since April 2009. It has worked like a charm since then & I couldn’t have been happier with making the switch.

Sometime last month (June) in the middle of working my mac randomly died. It turned back on but the battery indicator now had an x mark on it, if you clicked it, the message ‘battery not available’ would come up. It worked only with the power cable & would die immediately if the power cable was unplugged. I figured that the battery had died, after two years two months of using it as much as I do (a lot) I wasn’t to concerned. A new one was on the cards so I figured that I could safely use this one at home with the power cable only & maybe get the battery replaced later (I wasn’t under warranty or a care plan). 

At this time that battery behaved quite erratic. Sometimes when I switched it on the battery would show & behave normally, at other times it would go back to the x mark & say battery not available.

After a week of this, the problem became a lot worse. Even with the power cable connected, the mac would just spontaneously switch off. This started to get a lot more frequent, to the point where it would shut off within a few seconds after starting (still at the apple screen) & later it would just not start, even with the power cable plugged it. This seriously worried me, because most of my stuff was not backed up (silly me!) & so I knew I had to get it fixed ASAP. 

Here in India we do not have Apple stores, just Apple Premium Resellers (imagine / iStore / maple) & they are Apple Authorized Service Providers too. The imagine website was quite annoying, I filled a service request form on the iStore website (they promised they’d contact me within 48 hours but never did) & finally decided to take my mac to maple because it was relatively convenient.

I took it to the center on 27th June & explained the problem (the clerks at the counter were friendly but didn’t seem too proficient). My mac was listed as ‘battery needs to be checked’ & I was informed that I was going to be charged Rs 1700 (about US $30 due to the week Rupee & all). Fair enough.

The next morning I got a call from their technician, Bhaskar saying they had diagnosed that my battery was dead & I would need to have it replaced. At this point I wondered how fixing the battery would fix the mac switching off all the time but who am I to argue with a trained technician at an Apple Authorized Service Provider, right? 

Their policy entails that you have to pay for the battery, then only they place at order at Apple & the battery arrives within three working days (oh & their non-working days are Saturday, Sunday & Monday) The new battery would cost Rs 9600 (approximately US $171). Went in that very day & paid for the diagnosis + battery. I got the mac back the following Tuesday or Wednesday (3rd or 4th July). When they asked me to check it at the store, the battery still wasn’t working but they assured me it needed to be charged fully.

Within one day I was having the exact same issues as before. I was very disgusted by the whole thing but didn’t really have the time to take it back right away. On the 7th my dad came home with my new mac so I tasked myself with backing up everything from my old mac, amid multiple shutdowns. At this time I tested my old mac with the new power cable to rule out something being wrong with that, but it was the same. I got an email survey from Apple to rate the quality of service received, & I of course said that even though they communicated well, the service was completely ineffective.

The next day itself I started to get calls from Maple apologizing for the inconvenience but asking me to bring it in. Finally took it in on 17th. Got a call on the 20th asking for my password, they hadn’t even touched it for 3 days. 

And finally yesterday I got the verdict (from Bhaskar, again) “We checked & your battery is fine. It’s your motherboard that’s spoilt. And a replacement costs Rs 35,700″ (US $637).

I am not crazy to replace the motherboard for that much money on a mac that’s already old. The big problem I have is with their useless engineer who first diagnosed it as a battery problem. And I’m not trained in this kind of thing but it’s obvious to me that the battery was not at fault. If they had diagnosed it properly the first time I would have cut my losses but now I spent Rs 9600 (US $171) to get the battery replaced & took so many trips to their store to replace a battery that I will never get to use unless I pay a ridiculous sum to replace the motherboard too. 

I wanted to write about this before but couldn’t really type through all the anger. I know my rights, have all the receipts & will look to take Maple consumer court after I get back from Delhi.

I still maintain that Apple products are kickass but the service for those products in India is so dismal. Apple India, if you’re reading this, please step your game up!

I shudder to thing of the time when I’ll need some kind of service for my current mac. All I know is that if you live in Mumbai & own an Apple product that needs servicing, DO NOT TAKE IT TO MAPLE. They are in the business of robbing people, nothing else.

Tadka Take 2

Most of the consumers who share their experience with us are the ones who want to warn other fellow consumers of possible troubles with brands and/or their service centers and stores. And even if this is an isolated incident, we just couldn’t shake the nagging feeling off that if it has happened with one consumer, it can happen with more…and in all probability has happened with more. Brands like Apple that enjoy almost a hallowed status need to be extra careful when it comes to their consumers…after all with pedestal, comes responsibility (yes…i made that up…but you got my point!)

Our only concern…is Apple listening?

Do you have a similar story to share? Write to us at editor@akosha.com and we will make sure you are heard!

Warning: iPhone for 10,000! Beware-It May Not Be As Attractive As It Seems! (A True Consumer Experience)

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complaint against Aircel iPhone for 10000 a scam to harass consumers

complaint against Aircel iPhone for 10000 a scam to harass consumers

Important: We are running this story to forewarn all the consumers who just like us got all excited about iPhone priced at Rs. 10,000. It is actually pretty unprecedented. But this attractive scheme can possibly entail a bout of very shoddy service and harassment. The catch here is that Aircel locks you for a 6 month post-paid scheme and so if anything goes wrong there, there is probably no mode of redressing your grievances given their non-responsiveness (given the experience of at least one of our reader-consumers)

Tadka Take

A complaint against Aircel or for that matter any other telecom company makes me cringe. A completely unwanted reminder of the troubled times I have spent with my phones and sims and 3G cards and net cards and calling cards and receiving cards and cards that shall not be named.(The plurals are totally intended.) Sob! Sigh!

Now you know why I do what I do.

My sorry tale of telecom troubles aside, a country that rejoiced when it was finally empowered with the hallowed 3G soon realized that with power (or network or spectrums) comes responsibility which apparently can’t be spelt by the telecom companies in India (they spent that time in learning how to spell a scam). The end result is a disgruntled bunch of really very annoyed consumers who want to switch to landlines in the earnest. True they don’t move but they let you talk–which is apparently what a phone was actually supposed to do!

Below is an email that a consumer wrote to Aircel after a horrifying experience with their touted 3GS scheme.

She is yet to hear from Aircel.

Consumer’s Email

Dear Sir,

I write with reference to certain grievances in relation to my new Aircel subscription (iPhone 3GS with 6 month post-paid plan for Rs. 12,999).

On July 22, 2012, I made enquiries at the Aircel store in South Extension, New Delhi, to ascertain the procedure for applying for an iPhone 3GS with a 6 month post-paid plan for Rs. 3,000. I was informed that there was no availability of iPhone 3GS on that day, and further, I was given to understand that I would be called as soon as stock of iPhone 3GS became available and I would be able to purchase it on the same day as I received the call. In fact, I was also told that I should aim to reach the store within half an hour of receiving the call in order to purchase the phone, since there was great demand for the phone and it was being sold on a first come first serve basis. However, I never received a call or any further information.

Over the next few days, I called up the Aircel Store in South Extension on a number of occasions but the line was either busy, off or there was no response. I also called the Aircel toll free number, where I was made to wait for an executive to attend to me interminably, and eventually I did not receive any response. I finally got through to a sales executive on July 25, and was informed that there has been a change in the procedure and I would first require to fill a form, submit my address proof and identity proof along with a photo, subsequent to which Aircel would verify my address, immediately after which I would receive a call from Aircel to confirm that I could purchase the phone from the store.

On July 26, I visited the Aircel Store in South Extension and filled out the form and submitted the requisite documents. I was provided with an Aircel SIM card and its corresponding phone number. I was informed that my address would now be verified by an Aircel personnel, subsequent to which my Aircel SIM card would be activated, and I could then purchase the phone from the Aircel Store.

I told the Aircel sales executive attending to me that since I am working, I am not likely to be at home during the Aircel timings for verification (10 am to 6 pm) on weekdays and requested that the verification be done on either Saturday or Sunday. She said she would try her best to make sure it happened on Saturday, July 28. However, no representative came to my residence on July 28 and as usual, all calls to the Aircel Store in South Extension and the Aircel toll free number to follow up on this went un-answered. On July 29, I finally got through to the.      store and was assured that my verification would definitely take place on July 29. However, nobody came to my residence for address verification and all subsequent calls to the store went unanswered.

Finally, on July 30 at around 6.15 pm, an Aircel representative came to my residence for address verification. I was asked a series of questions, including those pertaining to my employment and how long I have been working. I was unable to understand why details of my employment were necessary or relevant for applying for a phone connection; however I provided Aircel’s representative with all the information sought.

On July 31, I received a phone call from another Aircel representative, who subjected me to the same line of questioning as that of the Aircel representative who had visited my residence on July 30. I was additionally asked some further questions, such as whether I live in rented or owned premises. I would like to point out that I had already provided documentary proof of residence to Aircel at the time of submitting my form, and frankly, this level of repeated interrogation by Aircel was quite baffling to me.

After this, I did not hear from Aircel. I tried calling the Aircel Store in South Extension at least 20 times on August 1, but to no avail.

On August 2 at about 11 a.m., I finally got through to the Aircel Store in South Extension on the phone. I sought information about the status of my application, and asked if I could now come and collect my phone.

I was told that my verification process had been ‘Negative’ as per the internal report generated by Aircel. This was extremely surprising, given that an Aircel representative had physically verified my presence at the address provided by me.

The Aircel representative informed me on the phone that the reason my verification process was  there was an outstanding amount of about Rs. 750 on the phone number assigned to me. I was also asked if I knew one Mr. Ishan Mehta against whose name the aforesaid outstanding was due. I said I did not know any Ishan Mehta, and since my verification had already taken place at my residence, it could only have had a ‘positive’ result, and this was clearly an error at Aircel’s end. The Aircel representative stated that my verification process could not have been positive as the records showed that Mr. Mehta’s dues were outstanding on my Aircel number. I was assured by the representative on the phone that he would check this issue internally and give me a call within an hour. However, I have not received a call from Aircel till date.

The following grave concerns emerge from my experience with Aircel detailed above:

1. Aircel’s system of consumer redressal is non-existent. There is not one aspect of my experience with Aircel that was satisfactory, as is clear from what I have stated above. This, coupled with a total lack of professionalism, ensures that no customer will repose any faith in Aircel’s products and services. I note from the Aircel website that there is purportedly a system for ‘Customer Grievance’ redressal in place, including an “Appellate Authority”. This is, frankly, laughable, considering that Aircel cannot even guarantee their call centre or store executives to respond to calls, let alone provide any assistance to a customer.

2. I was informed that my verification process had been returned with a ‘Negative’ note because one Mr. Ishan Mehta had an outstanding due on the SIM number provided to me. I have the following problems with this:

(i) The process of address verification is limited to a customer satisfying Aircel that (s)/he resides at the address provided by him/her. Presumably, once a customer does so, the process of verification must necessarily be concluded as ‘positive’. In my case, I submitted documentary proof of residence, met an Aircel represntative at my residence confirming that I lived there, and also answered seemingly irrelevant further questions on the phone as part of this verification process. 

However, I was informed that my verification process was ‘negative’ on account of the outstanding dues of a third party on the phone number assigned to me. I fail to understand why my verification process was prejudiced by factors completely outside my control, and which have absolutely no bearing on my proving to Aircel that I reside at the address I claim to reside at (which, it may be reiterated, I successfully proved). This verification process is limited to a verification of the customer’s address alone, and it is not understood how any extraneous factors can bear any nexus to it.

(ii) The SIM card and corresponding phone number had been provided to me by Aircel. So it is not understood on what basis Aircel can ask me to justify a previous due on the number, the assignment of which to me I had little control over. This was absolutely audacious, inexplicable, inexcusable and utterly illogical.

If Aircel has been unable to recover dues on a certain number, this is Aircel’s concern alone. In fact, if Aircel was running its operations with any modicum of competence, it would not assign a SIM card on which it is still trying to recover outstanding dues to a new customer.

But to ask a customer if they know another customer who has an outstanding debt to Aircel,  impliedly alleging that such debt is the new customer’s responsibility (since it has a bearing on the new customer’s application) is absolutely appalling and lacks even the most basic degree of professionalism.

3. Aircel’s verification process entailed asking a series of seemingly unnecessary questions. The level of enquiry did not seem proportionate to the product/service being provided. I have been a user of both pre-paid and post-paid services from Airtel and Vodafone in the past, and I have never been subjected to this degree of interrogation, and yet been provided far more superior services from these operators. And in return for this inordinately elaborate process of verification, I was not even provided the promised product/services by Aircel!

In fact, given the shoddy manner in which this company is run, I have no faith that I may be getting an un-used, non-defective first hand iPhone 3GS! If Aircel is recycling phone numbers on which Aircel still has outstanding dues – and subjecting a customer to questions about whether they personally know another customer, who defaulted on a contract which the new customer is obviously not privy to, displaying a shocking lack of professionalism, professional courtesy and common sense – then there is no guarantee that the iPhone 3GS instruments that are being sold are also being recycled! Of course, I have no way of ascertaining this for sure but given the horrifying experience I have had, I would rather not take a chance with a service provider like Aircel.

Therefore, I call upon you to please cancel my application. I have not been provided a reference number for the application, but presumably it can be tracked through the SIM card number provided to me, viz. +91971641****. In case you wish to collect the (hitherto un-activated) SIM card from me, you may do so after providing me with 72 hours’ advance notice.

Yours sincerely,
Parul

Tadka Take 2

I personally love the common sense bit. But since when have we started expecting companies in India to possess this rare faculty. What I really wish is to have more and more aggrieved consumers stuffing the lack of this common sense down every company’s throat they come across.

I didn’t mean to be violent but the extent to which these companies take their consumers for granted is suffocating!

What is interesting about this story is the downright stupidity of asking your new consumer whether they know the old consumer and holding the new consumer liable for the debt of  the old consumer! I really don’t have a comment befitting this corporate buffoonery. And what exactly was the logic behind the interrogation? Sure there must be ways of ensuring security without turning the process into a consumer harassment circus.

To be fair to the company, we are yet to hear from Aircel and when we do, we shall update the story. But, even if an issue is eventually redressed, it does not really take away from the fact that it arose in the first place. True consumer welfare is not in redressal, certainly not after a full fledged harassment cycle is completed. The welfare lies in a situation where the issue does not arise in the first place-a fact companies in India rarely give due credit to.

Update: Aircel did finally respond to Parul and following is the account what exactly transpired during the calls in Parul’s own words.

I received 2 calls from Aircel today. The first caller told me there is a handset ready for me and I can buy it, almost as though nothing had happened. I then made a reference to my e-mail and then he apologized, and requested that Aircel be given another chance. I said I have no faith in their service and in view of the way things progressed with my application, I didn’t wish to enter into a 6 month contract with Aircel and suffer.

I then received another call from another Aircel representative who apologized for Aircel’s mistakes and requested that I buy their handset. I told them I was supposed to get a call back a week ago but didn’t and since the only reason they were suddenly being responsive was because I had written a strong e-mail to them. So I couldn’t repose any faith in their service and risk entering into a 6 month contract with them. She had the audacity to say that they did tell me a week ago that my verification had been negative! I said that was their mistake and couldn’t believe they still couldn’t acknowledge that. She then apologized for “the goof up” and asked me to buy their phone. But I said I don’t want to go down that road with Aircel.

Thanks for all your help! I think it’s important to make other customers aware of their ridiculous level of service so others don’t suffer the way I did.

The path of redressal never runs smooth and this entire fiasco ended precisely as we had expected it to-with no real solution to consumer’s problem. This is not to say that redressal never really happens as we experienced plenty of cases where companies have successfully resolved the issues. But the onus for such utopia lies only and only with the brands.

Do you have a similar story to share? Write to us at editor@akosha.com and we will make sure you are heard!

5 Shocking Misselling Tactics Of Insurance Agents That Everybody Ought To Know About!

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5 Shocking Misselling Tactics Of Insurance Agents That Everybody Ought To Know About

5 Shocking Misselling Tactics Of Insurance Agents That Everybody Ought To Know About

A scary looking man grins at the camera, benignly shaking his head with utmost sincerity. An animated devil like creature, although way less scary than his grinning human counterpart, disappears with a poof behind the grinning face. One of the prominent insurance companies in the country flashes its logo with an attractive jingle and some tagline about honesty.

Once I get past my mortification at the aesthetics (or lack of it) of this advertisement, I realize that this ad may well have been an unintended satire on the perceived ugliness (literal and figurative) of all the insurance agents in the country combined. The underlying message is well meaning-that the agents of ‘X’ company are honest. But, the ad is also representative of a very disturbing reality of the insurance industry-the unruffled acceptance of dishonest, misselling tactics. So much so that a particular company deemed it fit to project the absence of these tactics as its USP.

I may not have gone so far. Every week, hundreds of misselling and dishonest insurance agents’ related complaints land on our desks at Akosha. The sheer number and magnitude of these complaints in itself is a proof of the extent to which this racket is flourishing in the country.

IRDA or the insurance regulator has been constantly trying to curb these practices with all sorts of measures and regulations and is all set to come up with revised guidelines for life insurance industry. The efforts have met with reasonable success. And yet, an industry that thrives on innovation in ways to cheat continues to do what it does the best-cheat.

Misguiding about terms and conditions of a policy, unrealistic prediction of returns are the sort of tactics that most of us are aware of of-whether or not that awareness saves us from being cheated is a different story. So, leveraging on our benefit of being exposed to the widest variety of insurance related complaints possible, we decided to compile 5 such unique misselling tactics employed by insurance agents that shocked and impressed us, although in a perverse manner:

1.       Fraudsters claiming to be IRDA representatives- When a consumer called Mishrilal first came to us with a complaint about fraudulent calls from people claiming to be IRDA representatives, we could hardly estimate the extent of this ongoing scam. These so called IRDA representatives claim that some ‘bonus’ has accumulated with respect to their policies and which is being allegedly polished off by their agents. All they are required to do is deposit some amount with these ‘representatives’ and they will ensure that the bonus is transferred to the policy holder. What happens after the amount is given is anybody’s guess.  Authorities having realized the gravity of the scam have been trying to warn the consumers against such fraudsters. We understand that this is hardly a matter involving the agents directly but what really stumps us is the accuracy of the information that these so called representatives usually have with respect to the policy holdings of their victims, an obvious indication of insider involvement. A simple way to address this issue is always checking the credentials and insisting on identity proof of whichever individual the consumer is dealing with.

2.       Selling Policies Without Consumer Consent- Another spin to the very same IRDA representative fraud is when these so called representatives take the money from the policy holders and then instead of vanishing with the money, very ‘honestly’ invest it in buying another policy for the consumer, albeit without his consent. These agents then conveniently vanish, leaving a hassled consumer in their wake, with his hard earned money stuck in a policy he never actually intended to buy. In most circumstances, it is next to impossible to get such policies cancelled. This fraud redefines misspelling by agents, dragging it into the territory of pure fraud.

3.       Selling The Wrong Policy- Ok. So you were very clear what plan you wanted and with what company. Everything was in order. But what if your agent, without your consent goes ahead and invests your money in a completely different plan? Horrifying thought, especially when huge sum of money is involved. This is what precisely happened with a consumer we came across while doing a story on ULIP( For pros and cons of Unit Linked Plans or ULIP, read this story To ULIP Or Not To ULIP). Amit Jamwal never intended to buy a ULIP. All he wanted was a simple term plan. But his agent, nevertheless, went ahead and invested his money in a ULIP. To make situation worst, disappeared without giving him proper documents. Jamwal is now stuck with a policy he never wanted, with hefty charges and two premiums paid. “I hate all agents”, he says before slamming the phone down. Understandable emotions. We empathize, barring the fact that the poor kid who was talking to him was a harmless budding lawyer-journalist. He neither was nor intends to be an agent-ever!

4.       Skirting The Free Look Period- For the uninitiated, free look period is a 15 day period starting from the date of issue of your policy within which you can opt out of the policy without any charges and with full refund (barring cuts for medical tests, stamp duty charges etc.) if you are not in agreement with the terms and conditions of the policy. This period is stipulated by IRDA during which the holder can cancel the policy or switch to another. However, agents have been increasingly coming up with ways to ensure that the policy holders are not able to use this period for what it is intended. The most common way to get past this period is non-delivery of policy documents within the free-look period, denying the holder an opportunity to examine his policy and its terms and conditions. Our only advice in all such circumstances is vigilance- cancel your policy the moment your agent even remotely tries to stall or unnecessarily delay the delivery of documents during the free-look period.

5.       Selling Policies That Are Not Needed Or That Are Not In Accordance With The Financial Goals/Condition Of The Holder- This is probably the most complicated aspect of misselling and usually happens with individuals who are relatively new to the field of investment. The result is a policy holder who is stuck with a life insurance policy that protects him only till the age of 35 years and consumes 15% of his salary as premium. To address this issue, IRDA has proposed that the company should assess the needs of the holder in detail before issuing him a policy and have for this purpose, have a detailed form that covers all aspects like income, goals and risk appetite of the holder.

As we had stated earlier and as is evident from the proposals, IRDA is constantly trying to curb this menace of misselling at a macro lever. However, no such attempts can be entirely successful without awareness and vigilance at the micro level. Consumers opting for insurance must abide by a certain thumb rules like-check for credentials, identity proof of the agents, always take second opinions, never rely on one agent completely and most importantly, be very paranoid, almost clinically-in this case, that is the only thing that can save you.

 

 

 

Skoda Troubles! Is This The Quality To Be Obsessed With? (True Consumer Story)

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Complaint Againt Skoda-True Tale Of A Harassed Consumer

Complaint Againt Skoda-True Tale Of A Harassed Consumer

Tadka Take

A complaint against Skoda Automobiles triggered a sharp realization for us. The realization of the all pervasisve metaphor that is called the car.

Automobiles  almost manifest the world of consumer issues, ranging from bada dil to bada bill. In short, a car is as much a middle class dream for mango people as much as it is the ultimate luxury statement. Hence, the consumer complaints too reflect this paradox. When we featured the story of a harrowed Nano consumer (Read: True Story Of A Harassed Nano Consumer), we had confined our perspective to issues that are triggered when car is bought out of necessity. But a consumer is a consumer, and harassment seems to be his fate as was evident by the story of this consumer who went through harassment while buying a luxury segment car. We also chose to feature this story about a complaint against Skoda to highlight the fact that in a world where lots of money can guarantee everything, spending lots of money hardly guarantees a protection against consumer harassment. Affluence, in other words, is no defense in the harsh world of consumers.

Below is the story of the consumer in his own words.

Consumer Story

Hi, I am Savio. My fiance, Ms. Divya purchased a Skoda Fabia (Colour: Red, Vehicle Num: MH01 BF 0632) from Autobahn Prabhadevi. Our pre sales experience was not of the highest class. We went in for an EMI facility and a number of documents required for the loan were asked later. We considered this a part of the strenuous process of getting through a loan (though it was the responsibility of the Executive Mr. Ali to have asked for all of these documents before hand). We were also recipients of short selling, when Mr. Ali during our test drive categorically stated that the Fabia model that we were purchasing had a Dead pedal. This was very important for Divya’s driving experience considering that she drove a Hyundai Santro for the last 12 years with a Dead pedal. In fact, one of the reasons why we chose the FABIA over the POLO and BRIO was the existence of a Dead pedal.

We received our car on the 4th of May 2012. Post driving it for a day, we realized it did NOT have a dead pedal. On querying Mr. Ali, he accepted that it was his mistake and that the Fabia does not come with a Dead pedal. When I inquired with Mr Ali’s boss (Mr Amit), I was told that he would inquire with the workshop and get back. It’s been 40 days; nothing has been done about it. Two weeks into driving the car, we noticed that there were sharp alignment issues. The car was leaning towards the left automatically. We visited the workshop (the car wasn’t even 15 days old) at Sewree. The representative at the workshop informed us as that as we had driven above 950 km, we would have pay charges. I rebutted with an outright ‘NO’. He then spoke to Mr. Amit and only then did he inform us that he would do it for free. Once the alignment was done we noticed that the back seat power windows weren’t working. We fixed that too at the Sewree workshop.

It shocked me that a NEW car was given to us with such major defects. Within 3 days, the alignment of the car was back to being a problem. This time it was even worse than the previous time. We decided that enough was enough. I called up Mr. Amit who said he would arrange for a pick up. But I had seen how the Sewree test drivers drove cars and I did not want any of these jerks to touch our car. So we decided that we would go to the KURLA workshop (apparently the most advanced) on Saturday (8th June 2012). We BOOKED an appointment. Directions to the workshop given to us by Ms. Maria were vague. We were asked to take a left after HP petrol pump. There are 5 HP Petrol pumps within 2 mins of distance. After calling her up thrice she finally gave us a tangible landmark and we found the workshop.

We reached the workshop and found (to our absolute amazement) that there was NO appointment in our name. This got us even more agitated. Only after applying constant verbal pressure, were we asked to wait till an attendee (Mr. Valentine) would take a look at our car. The quality inspector than took a test drive with us. Again to our absolute shock, he refused to acknowledge the alignment issue and in fact went to the extent of defending the defect saying ‘After 30mtrs left side alignment is normal’. Divya forced him to stop the car right there and then drove it herself to exemplify the issue. Only then did he accept the error.

We were then asked to wait while Mr Valentine did a recce of our car. While we waited in the customer lounge, we were stunned to meet another Skoda Fabia owner who had bought his car 4 days before from the same Autobahn at Prabhadevi (Mr. Abhay was his sales rep). He had purchased the top end version and faced multiple problems from power windows not working to inferior plastic parts. Frankly, we were too shell shocked to speak. We were made to wait for more than 3 hours while our car was being ‘repaired’. Only after a trial of almost 4 hours was our Fabia given back to us.

We’ve now driven it for 3 more days and once again the problem has cropped up. The car leans and shifts dangerously to the left and could cause loss of property, damage and worse loss of life. We went in for a Skoda because we thought that being a German company it knew what Quality was. Their Ad punch line ‘Obsessed with Quality’ also says that. But alas, I must admit we have made a mistake. We had decided that once Divya bought the Fabia, within a week I would book my Yeti and I also wanted to gift a Rapid to my future Mother in law. Thankfully, I haven’t done anything of that sorts. It shocks me that the response to our problems is poor and unsatisfactory. We have been given a DEFECTIVE car. There is no 2 ways about it.

On Saturday (16th June 12) I called up Mr. Amit and told him to take back the car or give us our hard earned money back. We frankly do not have the gumption to run to every workshop in Mumbai. There are much better car companies out there who know how to treat their customers with respect. Divya’s 11 year Santro never had an issue even after SUBMERGING fully in the tragic Jul 2006 Mumbai floods. I have written this letter to you to keep you aware of the facts. I hope you do something about it. Because I am not going to let go off this so easily. You need to just Google ‘Skoda Fabia problems India’ to know the multitude of issues people face. I wish I did that before I bought the car. Alas, I trusted in SKODA. 

Tadka Take 2

A very articulate narration of an experience that is not as uncommon as many of us would like to believe. Judging by the sheer number of complaints, buying an automobile is hardly the dream task it ought to be. Companies like Skoda which dominate the luxury section owe that much more responsibility to their consumers by virtue of a mere cost-benefit analysis.Maharashtra Consumer Forums across country have always taken a harsh stance against such complaints and we urge all consumers who are similarly troubled to not take things lying down and approach either forums like Akosha or escalate their complaints to consumer courts for redressal.

Companies like Skoda need to take cognizance of such issues and address them with pressing urgency because despite the availability of redressal mechanism, the interest of consumer welfare always lies in a situation where grievance does not arise in the first place. Until that happens, consumers like Savio will continue to pay price for their ability to pay a price!

Jugaad Reports- You Don’t Get A Medium, You Will Get A Large!

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Consumer Jugaad You Don' t Get Medium Only Large

Consumer Jugaad You Don' t Get Medium Only Large

We landed on the idea of a tip line when we realized the sheer diversity in the issues faced by the consumers on a day to day basis coupled with the fact that in some circumstances, the consumers themselves are not only the best and the only source of real facts but in several cases, the best ones to give tips and tricks and advice to the ones similarly fated.

But  why call it Jugaad?

Well, to be honest it sounds catchy and we are yet to meet an Indian whose ear don’t prick at the sound of the word Jugaad!

So our first tip was news nugget from a consumer called Anshul. A very significant observation, considering the fact that we are country obsessed with anything called FOOD. Below is Anshul’s tip in own words:

This is regarding the culture of small medium large food/drinks portion being served in fast food restaurants. I have noticed that many  times when you ask for a drink, the person asummes it that u will have a large drink and charge u for it without asking and when u tell him u want a small or medium they’ll most probably say that its just 5 rs difference. I don’t care about the money but it is the attitude that bothers me. It is their duty to ask us what we want and give us excatly that. I have seen a new trend at a few multiplexes where they do have small medium large drinks written on their menus..bt every time you ask dem for a small or medium they will say they dont have small glasses…just large. very disturbing!

Very disturbing indeed!

And this is also why we call this tip line Jugaad! Not all that happens in the consumer world is straightjacket and sometimes the issues that arise are a result of prevalent market practices that do not really and strictly fall with the legal domain. It is issues like this that irk us the most because these are ones that often go ignored.

The practice Anshul refers to is prevalent malpractice, often justified in the garb of great “salesmanship”!

What is utterly problematic here is that the sale is not a result of bonafide or well meaning convincing but a sort underhand bullying.

It is almost like when the local chaiwala says “Kya saab, 5 rupaiye ke liye rote hai”. What he is in effect doing is appealing to our ego couched in the threat of possible defamation in the eyes of people around you!

The exact same tactic, nicely wrapped in hi-fi angrezi, with sprinkles of pseudo sophistication and TADA!… the recipe of perfect upmarket salesmanship is ready!

As we mentioned above, this isn’t really a legal issue nor big enough to be tackled at a larger scale. It is the kind of thing that can only be tackled at the grassroot level.

Consumers should firmly STOP giving in to this kind of bullying, make it very clear that they will take ONLY what they had asked or else walk away and yes…don’t make it a plain threat. If you are bugged enough and of course care for your rights, DO WALK AWAY! (On a less civilized note and for those, who can take minor embarrassments with a pinch of salt, create a ruckus, the biggest fuss that you can manage…it serves the purpose-most of the times and that is personal experience)

It may not mean much here and there, and by the looks of it consumer will end up losing his food/drink. But sometimes, asserting one’s right is extremely important, even if in principal.(and if the assertion is loud enough and aggressive enough, it may even serve the immediate purpose :) )

And if enough number of us take this one step enough number of times, who knows, we may someday end up making that big difference!

 

 

 

 

Twist In The Plot! PVR To Pay Rs. 10,000 For Last Minute Change Of Movie.

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Imagine booking a ticket for a Karan Johar magnum opus and be treated with Ram Gopal Verma Ki Aag!

Shudders!

I do not intend to offend RGV lovers or Karan Johar haters. Of course, booking a movie ticket to watch a Benegal classic and being treated with heavily embellished Johar cryfest can be equally tormenting.

Bollywood is distracting. But, we will get back to the point.

So the nightmarish scenarios described above are not tools for masochistic pleasure, ode to RGV notwithstanding.

Note to self: Always remember, this is a family platform.

Diversions aside, the above scenario did come true for an aggrieved consumer in Delhi who booked a ticket for the movie Bas Ek Pal but upon reaching the cinema hall, was informed that the there has been a last minute replacement of the movie and Bas Ek Pal was not playing at the scheduled time. The consumer forum promptly filed a complaint in the consumer forum, which slightly less promptly (remember when Bas Ek Pal was released..umm..well remember, it was released), ordered PVR to par Rs. 10,000 as compensation to the aggrieved consumer for the inconvenience and disappointment suffered by her.

Interesting choice of words. Can’t imagine the extent of disappointment one would suffer if forced to spend one evening without one’s favorite movie.

But sarcasm aside, a consumer is a consumer and any brand which makes a promise is bound to deliver. It cannot cause inconvenience to its consumers on any account and get away. An important outcome of a such a verdict is also the recognition of the fact that people who watch movies in a theater are as much a consumer as any other industry-a fact which brands like PVR need to realize promptly and well.

PVR To Pay Rs. 10000 For Last Minute Movie Change (IBNLive)

Pic credits – Creative Genes

Did You Know About These 6 Things Your Builder Can’t Do But Still Does?

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6 Things Your Builder Shouldn't Be Doing But Still Does

6 Things Your Builder Shouldn't Be Doing But Still Does

Sifting through the numerous real estate related complaints that land on our desks every day is an instructive, enlightening and horrifying experience-all at once.

Instructive and enlightening because these complaints are a living, breathing manual on how to harass consumer; extremely handy should any of us decide to shift into the real estate business.

Horrifying because of the damning realization that this just the tip of the iceberg; a mere trailer of what consumers go through across country when dealing with builders and real estate developers. The ground reality of real estate sector in India, from a consumer perspective is harsh. And that is a gross understatement.

Pending a bill seeking to regulate the real estate sector to infuse some sanity in this opaque, unregulated, unaccountable sector-we decided to dig around some more on the prevailing scenario. The result was this list (which is neither comprehensive nor exclusive, given the rapid rate at which builders innovate when it comes to harassing their consumers) of some of the things that your builders should not be doing but are still doing just because no one has asked them to stop or dragged them to the consumer court!

1.       Charging for the parking/open space-When one of our readers, Chetan Dhowan, wrote in to us complaining that his builder is asking for a ridiculous price for every parking space, we decided to dig into the issue. What our research revealed was not surprising in the least-the practice was indeed illegal. What was surprising was the fact that this practice has been struck down by the Supreme Court itself in a 2010 verdict where it was clearly held that any open spaces usable as parking cannot be sold separately as they are common areas. Ironically, despite the verdict, as Chetan’s experience clearly shows, this practice has not subsided at all, with harrowed consumers across the country forced to pay exorbitantly for what is rightfully theirs! For a detailed analysis of this point, see Don’t Pay for the Parking Space, It is Illegal!

2.       Delay in Handing Over The Possession- One of the most commonly reported issues, with innumerable consumer forum verdicts against it–delay in handing over the possession of the houses continues to be the proverbial thorn in real estate consumers’ lives. The wait for the  consumer can sometimes be as long as 10 Years, and even then it takes a harsh consumer forum verdict to ensure the handover. Is it allowed? Of course not. As we said earlier, consumer forums across country have been relentlessly taking a stance against such delays, the most recent one being a verdict by a Mumbai Consumer forum Consumer Forum Penalises Builder for Delay in Handover of Flats. But the vicious cycle refuses to break, being repeated by some other builder, in some other place.

3.       Delay in completion of the project and resulting fiscal setback borne by the consumer- What is worst in case of the delay by builders in completion of a housing project is the inevitable, resulting fiscal setback which is ultimately borne by the consumer. The builder-buyer agreements have penalty clauses but they are not mandatory. The fiscal implications of delay have not gone unnoticed and Maharashtra State Commission in a landmark verdict clearly noted the insufficiency of the 9% interest rate that the builder was liable to pay on the refunded amount and the fact that the consumer in question has invested their lifetimes’ savings when they invested in flat and at the existing rates, it would be impossible for them buy a flat, even with the refunded amount. The result is often exorbitant compensations and interest rates granted by consumer forums in cases that come before them. But has it changed things? That is a cruel rhetoric.

4.       The wide chasm between the promised and the delivered- It isn’t very un-common place to find consumers cribbing about the layout and designs being different from what was promised or shown in the catalogue. What is worst is when the this habit of denying the promised extends to denial of basic amenities, leaving a bunch of frustrated consumers in its wake- with houses that leak, doors that creak and windows that rattle. Is it allowed? Do we even need to answer this? And of course you can drag your builder to the consumer court- trust us, it is really worth the effort.

5.       Bounced Refund Cheques- This is the kind of innovation we had been talking about. One of the complaints that landed on our desks was from a consumer whose builder obliged and refunded the entire amount with interest when the project was delayed. The catch-the refund was in the form of a cheque that eventually bounced. What made us do a double take on this complaint was the fact that this builder’s act was so wrong at so many levels, not just legally but also professionally. It just made us wonder how easy it was for these builders to get away with harassing consumers. So much for an honest builder!

6.       Denial of basic amenities- Denying electricity and water supply is a fairly regular practice for the builders. The consumers are forced to pull strings, pay money and resort to all sorts of tactics to ensure they get two things that are an absolute must and their primary right for survival in modern times. The builders get away with it, mostly- till someone gets a consumer court into picture and then, all hell breaks loose.  As was seen in the case where Thane Consumer Forum sentenced a builder to two years of imprisonment along with fine for denying a building water and electricity supply. For details, see Consumer Forum Convicts Builder For Denying Water And Electricity Supply.

As we had mentioned earlier, the horrifying reality of the real-estate sector from a consumer perspective is far too gory to be summarized in a list—any list. And there is some good reason behind the analysts and industry-watchers across country crying hoarse about the need for a Real estate Regulator to be brought into place. A bill is pending and from what we gather, has some promising provisions like hefty penalty in case of default, establishment of a State level regulator and compulsory registration for builders with the Regulator.

Our only question is when? And till then, what?

We really hope that this bill turns into a legislation soon, giving the real-estate consumers at least some hope of redemption. Consumer courts have been filling this gap for too long now and while they are effective, they really cannot replace a system of regulation that ensures that grievances do not arise in the first place.

Till then, and probably even after that, awareness is the key. The entire objective behind this list was to enhance awareness and let the consumers know what is wrong and that consumer forums are indeed of help in several cases. What is essential is knowledge of what is certainly not allowed and this is a weapon which every consumer must possess!

Sale! Sale! Sale! Decoding The Tax Maze Behind That Discount On Your Shirt.

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Twitter Query On Sale And Taxes

Twitter Query On Sale And Taxes

Twitter Query Extra Taxes On Sale Price Allowed

Twitter Query Extra Taxes On Sale Price Allowed

Sale! That is one word that always catches our eye. More so if you belong to that proud section of the population called ‘girls’. There goes our allegiance to the cliche–yes of course, that cliche which demands that we always make a reference to squealing girls whenever the word ‘sale’ is uttered.

Much as the feminist in me pleads to open a debate on how wrong that cliche is, I will steer clear of the issue and concentrate on the query at hand. (Which by the way is an extremely logical question that comes from a girl-who evidently thinks  not squeals when she sees a ‘sale’ sign. See-there I made my point!)

So one of our readers, asked us that when they say sale and then taxes extra, is it allowed?

The question, honestly, made us do a double take. The number of times we had gone to a sale and still never noticed this!

A primary research indicated that there are no clear answers to the question. So with a little help from our legal expert, Himani Subramanian, we got down to decoding this tax maze.

Under the Consumer Goods (Mandatory Printing of Cost of Production and Maximum Retail Price) Act, 2006, the consumer cannot be charged over the maximum price printed on the goods by the manufacturer. These guidelines are as follows:

1. Consumer goods mean all goods and items brought in the market for sale and are meant for the use and consumption of the consumers;

2. Cost of production means cost incurred directly or indirectly by the manufacturer in the production of goods;

3.Printing means printing of the cost of production and retail price at a visible place on the product in Hindi and English and the local language of the place it is sold; and

4. Maximum retail price means such price at which the product shall be sold in retail and such price shall include all taxes levied on the product.

The VAT is calculated over and above the Sell Price.

So the calculation is:

Sell Price + VAT = MRP
Rs. 95/- Rs. 5/- Rs. 100/-

VAT is governed by the State VAT legislation (VAT Acts of the particular State). The percentage of VAT varies from State to State within India.

In other words, MRP includes all taxes including VAT and no retailer can charge a consumer over and above MRP. Below MRP, however, is permissible and fairly common.

We will look at two scenarios

  1. Where flat percentage of discount is offered on the MRP.
  2. Where the cost of goods is reduced to particular amount, that is, the sell price is discounted.

In the first scenario the taxes including the VAT forms part of the MRP and discount is offered on the total MRP. The consumers must note that the ‘Sale’ here should specify that the discount is on MRP. If this is the case, then no extra taxes can be charged and if the retailer does so, he will be liable under the Consumer Protection Act.

For example: If 40% discount on MRP of Rs. 100/- is offered, then the total cost of the item will be Rs. 60/-. No extra taxes can be charged.

 We would also like to add that this is not a normal practice and rarely (never!?) do brands offer a discount/sale on MRP.

 The second more likely and common scenario is when the discount or sale is offered on the cost of goods which does not include the taxes and consequently, taxes are added on the discounted price.

A possibility here is that of the dealer misrepresenting the MRP as sell price in the advertisement and then charging taxes over and above the price.

For example: There is a sale going at Arrow where the cost of shirts/T Shirts is reduced from Rs. 799/- to Rs. 499/- and additional VAT is charged on Rs. 499/-. The dealer can argue that Rs. 499/- is the sell price and hence VAT is applicable.

If the dealer has misrepresented the discount by making false advertisement, he can be held liable under the Consumer Protection Act, 1986 in addition to relief under the Central Excise Act or the State VAT legislation.

The practice of sale or discount is an industry/market practice and does not really have a legal background and/or regulations.

The only precaution that we can suggest for the consumers here is to ask the right questions and carefully understand the terms of the discount being offered. The consumer has to be sure that the price list does not mention the condition ‘separate taxes applicable’ and if it does, (which is usually the case), take care that the price being discounted is the sell price not the MRP. 

Bitten Bigtime! This Is What Happens When Apple’s Case Is Heard By An Obsessive Apple Fan.

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Apple, Macbook Pro, Mac, samsung

Disclaimer: We are not disparaging the judge or questioning his motives, or for that matter saying that he was biased. We can’t. It is quite the contrary as you will realize as you read the following story. The headline just looked catchy, thats all!

This is not really a consumer issue, or may be it is-we are not sure. But somehow, in a world that is split between Apple Users and Losers, any headline that says Apple, screams for attention as its birthright. What else could we do but to oblige?

There is a saying which states that too much of anything is bad. Seems to be true in this case where extreme love of a UK Judge for Apple led him to state that Samsung tablets do not have the “same understated and extreme simplicity which is possessed by Apple. They are not as cool. The overall impression produced is different.”

This judicial fandom, however, did not augur well for Apple. Unlike in most cases, where fans are source of delight for the brands, here this particular fan cost Apple dearly. The fan-judge in question has ordered Apple to put up a statement on its website saying that Samsung has not infringed upon iPad’s design and also publish similar statement in newspapers and magazines in Britain in order to negate the bad impression created against Samsung.

This effectively means that Apple has been directed to advertise Samsung on its own website.  Apple is yet to comment on the developments.

So much for the loyalty of fans!

Apple Website To Declare Samsung Didn’t Copy I Pad.  (Times of India)

Did You Hear About A Courier Service That Refused To Deliver? (Consumer Story)

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A Courier Service That Refused To Deliver

A Courier Service That Refused To Deliver

Tadka Take

Ok. We admit we snoop around on FB wall of our elder siblings at Akosha a lot. To be honest, we almost stalk it. But it is not our fault, they somehow seem to have an unfair share of masala when it comes to consumer issues. And what is a  Tadka, without the right masala?

Ignore the unabashed stretching of the metaphor. And I am feeling hungry!

Back to the point minus the food related references. So, we were snooping around on Akosha’s facebook page and came across a very interesting complaint against Blue Dart, posted by a harassed consumer.

What is the primary objective of any courier company? From whatever we understand, it is to securely deliver the couriered stuff within an agreed time span at the right address.

Address and time are the two important factors, the only factors (except safety of the objects)  that are relevant to any courier service. What, then, does one make out of a courier company that refuses to deliver the couriered objects at the right address, that too repeatedly?

Below is the complaint, reproduced verbatim in the words of the aggrieved consumer

Consumer Story

Hi, 
To team Akosha
..
I have been shopping online since 2010 and every time any of the ecommerce site fulfills my order and ship it through Blue Dart courier service, they don’t deliver it at my address instead every time call me up to their distributions center (15 kms from my address).
As this issue was reoccurring procedure I contacted their top officials through mail and they instead of accepting their fault say that my pin (zip code) was wrong all the time, to prove my point I also sent them my Government of India issued voter id card clearly stating my address and pin code. this issue is again not stopping at all, they are continuing to do the same.
Please help!

Regards,

To be fair to the brand, we don’t have their side of story yet and this may be a case of once in a rare while when such a thing has happened. But what really bothered us was- first that there was a deficiency in the core service offered by the brand and second that the issue has gone unaddressed for so long. At this juncture, we not deny that there may be some fault on the part of the consumer too. However, being a company and a brand that specializes in delivering goods, it is the duty of the brand to ensure that consumer is not inconvenienced in any circumstances and if such a situation arises, due to whichever side’s fault (whether the brand or the consumer), it should be addressed and rectified at the very first instance. Being a courier company, refusing to deliver the goods at the specified address more than once, jeopardizes their very objective in the business.

Our elder siblings will take over the issue and will try their best to get it resolved . We shall keep you posted on that. But, for us at Tadka, this was yet another imaginative facet of the myriad issues that are faced by Indian consumers every single day!

Do you have a consumer story that can make us laugh, cry, tear our hair out? If yes, then we as always can’t wait to hear from you. Do write to us with your stories, opinions or experiences at editor@akosha.com.

 

Bugged By Excessive TV Advertisements? You Are Not Alone, Telecom Regulator Is Equally Irritated!

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Bugged By TV Advertisements, TRAI Wants To Help

Bugged By TV Advertisements, TRAI Wants To Help

How many times have you spent more time watching the advertisements than watching your favourite show? How many times have you repeated this cycle-Surf, Back, Damn! Still Not Started.

Of course you are not alone. Out of the numerous waking hours that all of us spend watching television, more than one-fourth of it is wasted on ads and that is a very conservative estimate. We understand the ‘need’ for the commercials, the money games behind it and we do gladly put up with them. Until they start testing our patience, that is.

We don’t mind the ads, heck, we even enjoy some of them. But if an hour long program is interspersed with 40 minute commercials, we are so not okay with it.

Guess, TRAI (Telecom Regulatory Authority of India) too was troubled…umm, well someone within TRAI was. And they decided to put an end to the menace. The regulations imposed by TRAI amongst several other restrictions, specified that time gap between any two advertisements breaks should not be less than 15 minutes for a TV program and 30 minutes for a movie.

Broadcasters were obviously not too happy and approached the appellate body TDSAT questioning the very authority of TRAI to issue such regulations, which according to them is only empowered to make recommendations. To cut a very long story short, the regulations have been suspended till August 30 while TRAI has promised to look into the broad matter.

We couch potatoes bless TRAI’s soul for taking note of our grievance. Now, we sincerely hope that TRAI does not soften this once and give us a smooth TV viewing experience. The chances of this happening, however, do not seem too bright. So till the time the final verdict comes in

Milte Hain Break Ke Baad!

TRAI Softens Stand On TV Ad Diktat (Business Today)

Crashed! The Heartbreaking Tale Of Lost Data And Crashing Hard-Drives (Consumer Story)

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Heartbreaking tale of crashing hard-drives

Heartbreaking tale of crashing hard-drives

Tadka Take

Technology is a boon. Hell yeah! Ask a couple of us who had been struggling with this godforsaken technology thing for what seems like ages. The ones who belong to this creed are professedly technologically handicapped and hopelessly stuck in a world which refuses to budge an inch without the required technological commands and jargons.

My motherboard seriously hurts!

And imagine, horror of horrors, when that enigmatic things called laptop crashes! It is almost like our entire world comes crashing down. It was as if just now we had figured how that damn thing functioned and before we could even celebrate, it crashed.

Of course, that is an exaggeration. But only a teeny weeny one. I am still figuring how n number of things in the scary cyber space work and I am still not sure if motherboard would be the right synonym for brains in the human world.

No wonder, following consumer’s story got me all emotional. So many us can relate to the horror of a crashing hard-drive, that too when we were no really at fault.

Consumer Speak

I had a simple problem of my Laptop display not functioning. I had called Just Dial Kolkata for name of Service provider from which i got no of- Combine-I.  On 11th May they have collected the laptop from my residence since I am working and said that the same will be returned to me within 3-4 days post detection of error. I had clearly mentioned to the customer care representative-Miss Priyanka that my data in the laptop should remain intact and no damage should happen to the confidential data. I was assured that the data would be intact. .I was told that there is some problem in the graphics card in the motherboard. As layman I am not suppose to know technical terms and issues that my laptop is facing.

After few days I was called by Ms Priyanka and told that there are some further issues and they would take another 2-3 days to repair the same. I agreed to the same. Hearing no news from them my mother had called them up and we had told them that they cannot be delaying delivery of laptop in this manner and to deliver the same as already 10 days have already gone and if there was any further delay, I shall not be making any payment to them because of such harassment. To my surprise on 22nd I was told by Priyanka that delivery boy is in Howrah and would not be able to deliver it on Tuesday. They had already tested my patience and I was compelled to use harsh language. However nothing affected them and delivery did not happen on 23rd May also. On 24th May, morning the lady very casually called me to tell me that the laptop would be delivered by 12.30 and all my data is lost as my hard-disk has crashed.

 I was shocked and asked her why backup was not taken in spite of me repeatedly telling them that I had very important data. My point as a layman and customer is that why I was not informed before that my hard disk crashed and all my financial data was lost. Did my hard-disk crash on 24th morning itself? No. It had happened earlier as I was casually told at the time of delivery. This is a limit to lack of service to a customer. They could have warned me earlier that I may lose the data. When I wanted to talk to the Proprietor of the company I was not provided any number. Finally, I called up Just Dial and posted a complaint with them. They helped me talk to proprietor Saha who clearly went on denying that there has been any service deficiency on their part. Why should customers be harassed like this by service providers? Don’t they have any turn around time for delivery of electronics or they can just take their own sweet time. I have still paid them the entire money demanded by them (Rs 3000) for providing me such disastrous service. Necessary action should be taken against such service providers who have no care for their customers and are just interested in getting their service fees by any means. I am thankful to Just dial Kolkata who have acknowledged my complaint and helped me in at least contacting the proprietor. Today out of sheer frustration and disappointment I am putting this story in this forum hoping that such negligence and lapse in service should not be faced by any other customer.

The details are sketchy and to be fair to the unnamed brand of the laptop, the consumer in question most probably did not approach an authorised service center. And there is where the moral of this story lies-never, NEVER, approach an unauthorized service center with your laptop or any such device. As seen in this case, there really is no accountability and no redressal whatsoever.

The take away-Beware of the random service providers. Especially if you don’t understand the jargon!

All Ye Consumers! We know you have many stories to tell and we can’t wait to hear from you. Do write to us with your stories, opinions and experiences at editor@akosha.com.

Locking Away Consumer Happiness: The (Nano) Secret Of Khushiyon Ki Chabhi (Consumer Story)

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Consumer Harrowing Experience With TATA Nano

Consumer Harrowing Experience With TATA Nano

Tadka Take

When we launched Consumer Tadka, it was a somewhere out of the realization of the fact that every consumer complaint is actually a story waiting to be told- a story that goes beyond mere bashing of the brands in question, a story which spells out the harsh realities that an average consumer has to face on a day to day basis. And as more and more consumers write in with their stories, the affirmation of our perception is strengthened.

We as a country have been hurtling towards affluence at an unbelievable pace. However, as the great glitzy dream of new age India soars, the common man immortalized by R.K Laxman continues be as common as he always was, with his common aspirations and still common problems. One such common aspiration that continues to capture the imagination of large majority of the population in our country is owning a car. There are a numerous families across countries that wait for years before they can finally become the proud owners of their very own cars.

Imagine the angst of the consumer, when that car which arrives at his doorstep after years of anticipation becomes a source of constant trouble and harassment. Such stories are much more than stories those talk about consumer dissatisfaction. These stories are about dented dreams, brutally crushed just because a brand refused to care for its consumers.

Below is a similar tale of a consumer who had a bitter experience with his recently purchased Tata Nano. We reproduce his tale here in his words:

Consumer Speak

I had booked a Tata Nano CX (BS-2) with M/S ASL Motors, Jamshedpur on 8-October-2010 and received delivery of the same on 27-October-2010. The vehicle has been giving problem and been under breakdown several times since its delivery. The first problem was registered with M/S ASL Motors, Jamshedpur on 06-November-2010 when the vehicle did not startup. The problem was rectified and the vehicle was returned on 08-November-2010. The job particulars on the retail invoice stated: BATTERY REMOVE AND INSTALL. The second problem was registered with M/S ASL Motors, Jamshedpur on 24-November-2010 when the vehicle did not startup. The same was rectified and the vehicle was restored on 28-November-2010. The job particulars on the retail invoice stated: REPLACE COMBINATION SWITCH. The third problem was registered with M/S ASL Motors, Jamshedpur on 22-December-2010 when the vehicle did not startup. The problem was rectified and the vehicle was returned on 02-January-2011. The job particulars on the retail invoice stated: BATTERY REMOVE AND INSTALL. The fourth problem was registered with M/S ASL Motors, Jamshedpur on 06-January-2011 when the vehicle did not startup. The problem was rectified and the vehicle was returned on 14-January-2011. The job particulars on the retail invoice stated: R/R ALTERNATOR ASSY.

I am unable to deduce anything conclusive from the job particulars/remarks on the retail invoice for job cards regarding the problem. The problem just keeps on repeating itself and it has become a source of harassment. The vehicle is not starting up again since 15-June-2012 and I have not bothered to take it up with an authorized service center for past bad experience and lack of proper solution/guidance. In the past, I had inquired several times with M/S ASL Motors, Jamshedpur about the reason for such problem with a brand new vehicle and they had never given me a proper answer. It is surprising and frustrating to find such problem surfacing several times within less than four months of purchasing a new vehicle.

Furthermore, there have been other problems with the vehicle as stated below: – The fifth problem was registered with M/S S S AUTOMOTIVE, Jamshedpur on 16-December-2010 for starting problem. The problem was rectified and the vehicle was restored on 18-December-2010. The job particulars on the retail invoice stated: BATTERY CHECK OUTPUT AND CONDITION. The sixth problem was registered with M/S ASL Motors, Jamshedpur on 13-June-2011 for gear shift problem. The gear was stuck and would not move. The problem was rectified and the vehicle was restored on 13-June-2011. The job particulars on the retail invoice stated: GEAR SHIFT MECHANISM The tenth problem was registered with M/S ASL Motors, Jamshedpur on 27-April-2012 for torn accelerator cable. The problem was rectified and the vehicle was restored on 28-April-2012. The job particulars on the retail invoice stated: R/R ACCELERATOR CABLE.

Problems with such frequency in a new vehicle are unexpected and unacceptable. Either the product (vehicle) was defective from the beginning (right off the assembly line) or the personnel at the authorized service center(s) are not competent enough to solve the problem(s). In either case, it is I (the customer) who has to face the brunt. Due to my bad experiences I have been led to believe that Tata Motors’ quality assurance is misleading and questionable. They have not maintained acceptable standards in your product or the authorized support personnel or both.

Whether the problem was a result of an assembly line defect or incompetency of the service station personnel, the bottomline here is that it is completely unacceptable for a consumer to be running around the workstation for a brand-new vehicle. This tale makes us wonder if this consumer would have been better off if he had purchased a second hand functioning car, available at much cheaper rates.

As we said earlier, purchasing a vehicle in India is dream that should not be trampled over. It is a grievance that goes beyond a whim of a finicky consumer and least that Khushiyon Ki Chabhi can do, is to refrain from locking away the consumer happiness.

If you have a similar story or a consumer experience that you want to share, we would love to hear from you. Do write to us with your stories, opinions and experiences at editor@akosha.com. 

 

Abusing Lessons For Annoyed Brands-Online Consumer Forum Style!

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Abusing Lessons For Annoyed Brands

Abusing Lessons For Annoyed Brands

Early in the morning, one of the first few things that landed in my mailbox was a piece on how consumers were literally cussed out by an American company employees on an online consumer complaint forum. Now, while we have forever sworn to ourselves to concentrate on the serious Indian consumer issues, serious and Indian being the two operative words, we just couldn’t resist bringing this piece forth for its sheer innovation.

By way of a background, an American gas company’s employees were presumably upset at how high their brand was ranked on the complaint page of the forum. The forum, which interestingly calls itself Pissed Consumers, was then barraged by comments from  individuals logged in from the concerned gas company’s IP addresses. These individuals as the Pissed Consumer specified in the court documents, responded to complaints with “comments that mock belittle and abuse.”

What follows is a very, very instructive list of illustrations of the comments that were posted on the Forum. We, in the interest of decency and sobriety of our platform, are refraining from publishing the list. But those (read brands) who nevertheless are interested in taking some valuable lessons in venting out frustration on annoying consumers can refer to the story Amerigas Employees Allegedly Cussed Out Customers In Complaints Forum (Business Insider).

Seems like Pissed Consumers finally met a match in a way more Pissed Company.

Our take after reading this extremely entertaining list of illustrations-all creative abusing aside, nothing creates more impact than YOU ARE AN IDIOT (yes, in all caps!).

Our take 2- Note to elder siblings at Akosha-Beware of temperamental brands.Well– actually not really. Look out for temperamental brands. They are really very entertaining!

 

Warning: Public Reviews Ahead! The Endless Saga Of Companies Gaming Public Reviews.

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Just as the twitter world rages the debate on @Zomato credibilities, we couldn’t help but notice what a tweet-head had to say, “The only thing I value about Zomato are the menus of restaurants. Helps me plan my meal. For reviews, I rely on blogs.”

Ire on Public Reviews

Ire on Public Reviews

Interesting take on user reviews posted on Zomato and all such similar sites. As the twitter community glorifies and shoots down the credibility of these user reviews posted on Zomato, it was imperative for us to understand the anatomy of this phenomena called user reviews.

Understand we did, and we did not have to go too far for it. Our elder siblings at Akosha have all been too aware of this phenomenon and how!

For nth time, an Akosha representative sent out a mail to a client who was supposedly so impressed by a shopping website that he insisted on posting a ‘positive’ review of the site on Akosha’s complaints page. Oh yes-The complaints page. May be we were not clear enough, but folks it is a complaints page, and last we checked, a complaint meant a negative issue that needed sorting out-not a paragraph singing praises of a particular brand.

The obvious stupidity of this endeavor aside, what was more appalling was that these so called ‘complaint’ reviews about the same shopping website kept flooding Akosha, ostensibly from different users (see images below). Only that the language and style (or the lack of it), triggered a nagging doubt about the multiplicity of the sources of these reviews about that ‘awesome’ website.

 

Example 1 - A typical ecommerce company trying to game reviews

Example 1 - A typical ecommerce company trying to game reviews

Example 2- How A Typical E Commerce Company Games Public Reviews

Example 2- How A Typical E Commerce Company Games Public Reviews

This scam of sorts had us thinking, of all those reviews that we had ever read on the user review websites and we couldn’t help but wonder, “What if?”

The Problem With Public Reviews

The public review model in itself is a fairly difficult model in terms of objectivity and impartiality. While the model itself functions on the user biases, it can also be used by the brands/companies in question as a mode of promotion via third parties, masked as a user review, lending it the credibility of a user based platform while actually using it blatantly for promotion. In case of Zomato, we are at least aware of its role as a social media marketing agent of certain brands- what is worst is when the activities are covert. And even more disturbing when this platform is used for generating negative publicity for the competition.

We do not intend to pass a judgment on any of these websites nor is our intention to disparage any particular brand reviewed by them. What we intend to do is to simply highlight the ambiguity that is inherent in the user/public review model itself, social media marketing (as in case of Zomato) notwithstanding. It is undoubtedly a double edged sword, equally potent for both promotion and disparagement.

We treat our readers as discerning individuals, capable of making their own reasoned decisions.  All we have to say is next time if we stumble upon a user review, we are going to take it with a bagful of salt.

 

 

Guest Post: Ebay India – An Online Grey Market?

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E-commerce in India is expanding. Almost every product can be brought online. Ebay is one of India’s largest online marketplace (ebay.in) and has over thousands of sellers registered who sell both new and old products. But that is hardly the point. The point of concern arises because Ebay India is also probably the largest online grey marketplace. At the expense of sounding exaggerated, it can be well asserted that it is the online counterpart of Palika Bazaar or Gaffar Market in New Delhi. The only big difference being that when we buy stuff from Palika Bazar, we know that it is from a grey market and hence the consequences. But for an average consumer, the legitimacy of Ebay is hardly questionable and the grey market consequences are usually a bolt from the blue. And this is what makes Ebay deals a worst nightmare for consumers than a full blown grey market deal.

Can one buy anything online which is not available for sale in the country yet? Are the laws of India so weak that such practices cannot be stopped? Jai Anand unearths some hard facts and shocking truths.

Let’s go across and look at some of the listings which make the matter serious enough to notice

Samsung focus i917, Not launched in india

Samsung focus i917, Not launched in india

Look at the short description of the product

Ebay fraud, Samsung Short Description

Ebay fraud, Samsung Short Description

Now, look at the detailed description of the product

Ebay fraud, Samsung Long Description

Ebay fraud, Samsung Long Description

This seller ‘claims’ to be located in West Bengal and is selling imported Samsung focus i917 which has not yet been launched in India. The phone is imported, the short description of the phone mentions the phone to be ‘New: A brand-new, unused and undamaged item’ as highlighted in the image while the detailed description mentions that ‘Expect the phone to be in 9.9/10 condition’ as highlighted above. Moreover, the product has no return policy (which as reported elsewhere on Consumer Tadka is illegal, see Goods Once Sold Will Not Be Taken Back. Don’t Get Stuck, It’s Illegal) and carries a seller warranty. Note that warranty period has not been mentioned. This can have serious implications. A product carries a warranty but has no period of such warranty leaving consumers in a messy fix and absolutely no accountability on behalf of the seller. Why does Ebay allow listing of the products which has an (illegal) no return policy and no warranty?

What more? These products are in all probability smuggled at cheaper prices from abroad and then sold at prices lesser than the market price with concepts like ‘seller warranty’. For the uninitiated, ‘seller warranty’ means the seller assumes the responsibility of items which are not covered under manufacturer’s warranty either because they are smuggled from abroad or those items not available for sale in the region concerned. A manufacturer’s warranty is a valid warranty and is legally enforceable. A seller’s warranty can hardly match this because while manufacturers have a reputation to upkeep and a proper system in place, it may or may not be so with random sellers. The possibility and probability of enforcing a warranty which relies on random sellers, is in itself is a dicey idea. In effect, it is like a promise that every Palika Bazaar shopkeeper has mastered, “Any problem, bring it to us, it is our guarantee”. Think back on the number of times you had actually believed in the enforceability of this promise and you would know what I am talking about.

Delving in details of most of these products is like a dive in a can of worms. This particular product, for instance, carries operator’s logo, unlocked by a third party (not officially unlocked) and could be used as it is. Indian laws do not allow import of used phones in the country which clearly implies that this may also be a smuggled product. It says it is not in new condition because ‘it travels a long way in boxes’. Really?! In that case, every Nokia/Samsung/Blackberry phones should be damaged while they are officially imported to India!

USED/STOLEN PRODUCTS

Used phones are widely sold on Ebay and that too as a commercial activity. Is it legal? Well, that’s another dive in the worms.  If the sellers do not give invoice to people through whom they purchased the product originally, it certainly isn’t a legal activity. Imagine a situation where a user bought a phone through Ebay India from one seller. It turns out to be a stolen phone and the user is caught. Now though the user is not at fault, to prove the same in the court of law is a tedious, embarrassing and harassing process. Well, the situation is definitely exaggerated but certainly not impossible. There have been various instances where users have reported that some of the sellers listed on Ebay are selling stolen goods. Have those matters been duly investigated? I am not very sure but there has definitely been no evident, stringent actions taken to curb this practice.

Users who bought used phones from Ebay have reported various problems like broken screen, low battery, accessories not working and other damages to the phone. Though sellers take responsibility for their listing and information, yet in most cases return shipping cost is to be borne by the buyer – so, in effect, users pay for seller’s fault too. In numerous cases, sellers do not take responsibility and say that ‘This is what was mentioned in the listing’ and buyers end up losing their hard-earned money.

Here is another illustration. Following is the listing of the phone, seller ‘claims’ to be located in Mumbai and have huge no. of listings of used mobiles.

Used Phone Listing

Used Phone Listing

The seller only mentions ‘Nokia E6 Mobile in Excellent Condition with All Accessories’ and has not attached any original photo of the mobile, only a generic photo. Phrase ‘excellent condition’ is subjective; what may be excellent condition for the seller may not be the same for the customer. Hence, there is a need to show the original photos of the product while listings such products. Why doesn’t Ebay as a consumer friendly, legal online marketplace make policies to encourage and ensure that anyone selling a used product must attach an original picture of the product to give a fair degree of idea of at least the physical condition of the listed product? (Physical condition may be crucial for certain products like a mobile and a visual proof also discourages undesirable, lofty claims about the product which may eventually turn out to be false.)

FAKE/REPLICA PRODUCTS

The Ebay can of worms is seemingly endless. To multiply the concerns highlighted above, one can even get imitation of numerous products from Ebay ranging from mobiles to watches, any brand, Tag Heuer, Rolex, Rado, Vertu, Apple and others. The situation becomes even more problematic when there is a clear, deliberate intention of passing down a fake replica as the real deal.

Let’s look at some listings below

Ebay Fraud Replica 1

Ebay Fraud Replica 1

Ebay Fraud Replica 2

Ebay Fraud Replica 2

Ebay Fraud Replica 3

Ebay Fraud Replica 3

These three listings of Tag Heuer and Rado watch are priced between Rs.3000-6000 while the original watches costs over Rs.2 lacs. Nowhere do these listings mention that they are fake or replicas. Even if they do mention, it is illegal to sell replica of any product and the sellers/manufacturers of such replicas are liable to the companies concerned. Many of the consumers who are not aware that they are actually replicas (since it is not mentioned), end up buying the product and feel cheated when they realize that product received is a cheap replica. Moreover, for obvious reasons, these products do not have any return policy or warranty. One may argue that the consumers should be careful enough to notice something amiss if the prices of otherwise expensive products are slashed to this extent. But, the point is, can Ebay shrug its responsibility towards the consumers on the basis of their common sense? Why doesn’t Ebay take any steps to remove the listings of replica products? And why doesn’t it duly warn its consumers against this practice?

RETURN POLICY AND WARRANTY

Return policy and warranty of the product are two extremely important points that buyers must take into account and as a general rule should ensure that they check these policies before buying anything.

Following is the return policy and warranty of the Nokia E-6 listing (attached above)

Nokia E-6 Return policy

Nokia E-6 Return policy

Note that in return policy it says ‘Item must be returned within 7 days and refund will be given as exchange’. Besides the fact that the policy in itself violates the law which grants consumer the right to get their grievances addressed as they deem fit, the policy with all legal points aside is a huge inconvenience to any average consumer. Any consumer who is unhappy with the product or does not find the product in so called ‘excellent condition’ cannot get refund of his purchase (not by simple means at least) and he only has an option of ‘exchange’. This is highly unethical because despite seller not delivering the right product, the consumer still has no option. There are no serious repercussions for the seller and he can send out a similar product as ‘exchange’. With the exception of the bunch of consumers who are willing to take the longer route to justice through consumer forums, an average Ebay consumer is nothing but stuck with these draconian policies. How can Ebay allow such a policy to be put in place which is not only unethical but is also in violation of the law of the land?

The consumer woes don’t end here. Shipping cost for the return too has to be paid by the buyer/consumer and as mentioned earlier, it is like consumer paying for the seller’s fault. Even in circumstances where the seller has not sent the right product, return shipping cost still has to be borne by the buyer. Why doesn’t Ebay stop such practice? In case of a clear cut fault by the seller (not in the product itself), why should a buyer pay for shipping?

The product mentioned above carries a delivery warranty of 6 months.  Now in case there is some serious fault in the phone, shipping cost has to be borne by the buyer to send it to the seller, which typically costs Rs.200-250 and the seller may or may not honor the warranty and may charge the customer for the service of the phone as well. The worst scenario is when the seller through which the user has bought the phone is no longer registered on Ebay. It is crucial to note that the warranty clause at Ebay is only in the listing; the customer does not get any sort of warranty card to claim such warranty. Nowhere does Ebay clarify the course of action in such circumstances and does not specify who is to be held liable in such a scenario.

MASSIVE TAX EVASION

If one looks at the above paragraphs, I have put ‘claims’ in quotes. That’s because there is no verification at all if one wants to become a seller on Ebay. It’s as easy as registering via a mobile number in India for Indian residents or by providing credit card details for others. Ebay doesn’t care if one runs a company or not, what are the sources of the products being sold and moreover they don’t even ask for any valid/accountable proof of identity whatsoever.

One is not even asked for a CST number (required for every shop to sell goods outside state for the purpose of sales tax) before selling any of the items. At the first brush, this seems nothing but a conspiracy for massive tax evasion since anyone is allowed to sell anything at any rate with no accountability of sales tax or import duties. Ebay definitely has its excuses as there are ‘individuals’ who wish to sell second hand goods used by them so asking them a TIN/CST number would be useless. But a blanket exclusion is highly questionable and certainly not desirable.

Ebay requires the user to submit a proof of identity and address only if his Paisapay payment goes beyond Rs.50,000. So in effect one can sell anything without any proof of identity and address as far as payment does not cross Rs.50,000. And that is not all. Indian laws requires mandatory registration of VAT if a person sales cross Rs.5,00,000 annually and there are way many sellers at Ebay who cross this mark. But Ebay does not ask any of these sellers to provide any documents. A seller can transact by just using a savings account which can be changed anytime. There are sellers who use multiple savings accounts to transfer the money to avoid tax issues. How is that possible that Ebay India transfer payment of high value to the sellers for these unofficial products through online bank transfer (NEFT), where is the tax? Ebay needs to and must verify the seller’s VAT and CST numbers if his sales cross Rs.5, 00,000 annually.

Not all online market sites are resorting to covert means. There are websites like www.buynsellindia.com which ask for identity verification. But obviously who would like to go through such formalities if a big brand name like Ebay is supporting covert practices. Why would the sellers migrate? For all those buyers who get the Apple products in India, it’s heaven because believe it or not, there are sellers at Ebay who thrive on a reputation that they sell original smuggled goods and not fake smuggled goods. Notwithstanding that fake or not, the goods after all are smuggled!

REDRESSAL ISSUES

The trouble with Ebay doesn’t end here. There are more limitations at the customer care/redressal end. The sellers who have account related problems are not even given a contact number as to know why their account has been suspended. All they can do is write an email to the web help team who work from outside India but cannot contact the anyone at Ebay directly. They have to wait for their reply via email only. So in case a seller’s account has been suspended, it can take months before the issue gets across to the concerned persons. Consumer forums are full of problems with Ebay India which blocks the money of sellers and then asks them to reply through email. As expected, no interest is paid on the amount for the period it is blocked. There are hundreds of sellers whose payment has been blocked by Ebay for years and in some cases it ranges in lacs. Ebay India, it seems believes in breaking the law rather than following the it and ‘Jugaad’, evidently, is their preferred mode of operation.

Shortcuts have inevitable downsides and the shortcut called Ebay has one too many. While we can hope that the regulators take note of such irregularities and ensure that they are curbed, it is ultimately the duty of the consumers/users of websites like Ebay to be aware and cautious of all the possible downsides including the loss of revenue to the country and avoid patronizing such activities.

Update : The Consumer Tadka Effect-Following the publication of this piece by Consumer Tadka, Ebay has removed the listing of the three replica watches referred to in the article. We commend Jai for his efforts!

Jai Anand is a law student and is currently pursuing his III year at Jindal Global Law School. Author can be followed at twitter.com/jaianand01

All views are personal and Consumer Tadka does not take any responsibility of the views expressed here.

To ULIP Or Not To ULIP?

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Case 1: Mr. Ashish Pareek, an engineering grad, was lured by an agent from Max New York Life Insurance Company to buy a policy where he had to pay a premium of Rs. 20,000 for 3 years after which he was assured a return of Rs. 2-2.5 lakh. At the end of 3 years period, the promise of hefty return remained unfulfilled and his attempts to secure his returns were obstructed by surrender charges of around 25%. Five years down the line, despite payment of an additional premium of Rs. 20,000, the hefty returns continue to evade Pareek. The NAV of his policy has increased but the value of the principal amount paid by him depreciated from Rs. 80,000 to Rs. 56,000, courtesy multiple charges that entailed his policy.

Case 2: Mr. Swaran Jaggi, took a ULIP from Aviva Life Insurance with a yearly premium of Rs.54,000.  Over the years, as the market valuation of his fund deteriorated and he eventually stopped paying the premium upon advice from company advisors. He intended to withdraw once surrender charges were reduced but eventually received a sum of Rs 89,832/- (against his deposit of Rs. 1,62,000). For a policy that promised appreciation of 10-15% of the principal, Mr. Jaggi’s money depreciated by around 55%. Mr.Jaggi promises to chase the company to end of the world if that is what it takes to seek justice.

Organised Crimes”, is what Mr. Jaggi promptly labels the ULIP schemes. Too strong words, no doubt, but sufficient to express the angst of an average investor.

For the uninitiated, ULIP is an acronym for Unit Linked Insurance Plans. These plans, as many prominent insurance companies claim, give consumers a unique opportunity to invest while they enjoy the benefits of a life cover. A ULIP therefore, to quote from Kotak Life Insurance’s home page, “gives an individual the security of life insurance along with wealth creation opportunities. One can benefit from flexibility, liquidity, strategic savings, tax benefits and fund options that are inherent in a ULIP.” Kotak of course is referring to its own ULIP schemes, but the idea basically summarizes how industry in general perceives ULIP. ULIPs inevitably are, hence, marketed as the extremely consumer friendly insurance products that aim at giving consumers the best of both Worlds.

But do they? A large chunk of veteran investors begs to differ as do a couple of industry insiders. Deepak Shenoy, Financial Advisor and Chief Editor, Capital Mind is categorical in his dismissal. “Investment and insurance should not be mixed. Period”, says Deepak. A view strongly reiterated by Mr. S.N Mishra, retired IFS officer and an avid investor delving into shares and mutual funds for past 20 years. “Go for Term Plans”, quips Mishra, “it gives you life cover at minimal cost. ULIP have hidden costs beyond any average investor’s comprehension.”

“Go for Term Plans”, quips Mishra, “it gives you life cover at minimal cost. ULIP have hidden costs beyond any average investor’s comprehension.”

Unravelling The ULIP Mystery

It is hard to comprehend why ULIPs hold such a sway in the investment market despite the evident cost factor and complexity. Mr. Dwivedi, a Lucknow based agent, offers a perspective, “Forget term plans, with commissions on mutual funds slashed, agents were unwilling to market even mutual funds. ULIPs were lucrative, attractive at the first brush and suited the agents perfectly.”Agrees Deepak, “the idea is to confuse the consumers with complicated graphs and designs even though every such product is inherently designed to ultimately benefit the industry, not the investors”.

Comprehensive Guide to ULIP

Comprehensive Guide to ULIP

Not just the agents, a major factor that has worked in favor of ULIPs is a prevalent investor perspective. A simple term plan means that if one survives the period of the policy, the entire amount of premium invested is effectively lost. On the contrary, the attractive returns that are offered by any ULIP seem much more the money’s worth even if that means investing a greater chunk of money. Says Mishra, “for a first time investor, it is hard to comprehend the value of a term plan minus any returns on the money. A life cover is based on a contingency nobody wants to contemplate and hence, does not translate into tangible benefits. ULIP on the other hand offers a tangible and more immediate value for money with life cover an ancillary benefit as and hence, an obvious choice for an uneducated investor”. In the case studies cited above, the primary motivation for both the investors was the proposition of tangible returns in short span of time, an elemental error committed by a number of investors.

No wonder then that ULIPs have, until recently, been the top selling plans of life insurance companies, evident by the contribution they make to life insurance companies revenues. Moneycontrol.com reported in September 2010 that ULIPs had reaped in a growth of 45% in the financial year 2009-2010 when the net growth of the insurance industry hovered around 21%. Moneycontrol attributed this growth to the “mis-selling” strategies of the insurers.

Deepak Shenoy

Deepak Shenoy

The Complexity Trap

The calculation of returns is complicated and what most investors are unable to comprehend or calculate is that while the return sum may look substantial, it actually is a very meager percentage of the premium they have already paid. Illustrates Deepak, “In 1997, a yearly premium of Rs.200 was all that was required to insure a sum Rs. 1Lakh for 25 years in a through a term plan. But a large number of investors chose, instead, to pay hefty premium of around Rs. 5000 for an equivalent life cover but with money back benefits with such schemes returning a sum of around Rs 15000 every four years with a promised bonus at the end of the term. Very attractive in the first brush but what most investors couldn’t understand then was that the net return would be a meager 5% of at the total premium they would have paid in that span of time; significantly less than the percentage return if the money was invested in mutual funds or simply stashed away as fixed deposits in a bank.”

The situation worsens in case of market slumps because more often then not, the risk factor is not properly spelt out in case of ULIP. Coupled with the exorbitant charges, the losses suffered by individuals are humongous, Rues Jaggi, “I understand market risks. But, when a plan promises me 10-15% returns and then depreciates the principal by 55%, it is a massive mis-estimation of risk by the plan. It is a breach of confidence of an investor who relies on the plan to safeguard and multiply his money. They cannot shrug their responsibility on the grounds that they did not guarantee anything. The technicalities of complex fund documents cannot be and should not be allowed to become an excuse for stashing away my hard earned money” Mr. Jaggi like many other investors, blames the weak regulatory regime for the ULIP fiascos.

The Recent Guidelines And The Implications

This widespread concern has not gone unnoticed. Mis-selling strategies and high investor risk quotient in case of ULIP has long been on IRDA’s (Insurance Regulatory Development Authority) radar, eventually leading the regulator to come out with detailed guidelines with respect to ULIPs in 2010.

Technicalities aside, these guidelines aimed at making ULIP more investor friendly while capping the charges and expenses borne by the investors. These guidelines also increased the lock-in period to ensure that these products were not seen as tools to short term gains and also increased the minimum life cover to be provided by these plans, thus ensuring that the insurance aspect of these plans was substantial and not ornamental. This fresh, consumer friendly version of ULIP, expectedly ruffled the insurance industry, resulting in a complete reversal of trend post the implementation of the guidelines in 2010. With a cap on the charges and resultant reduction in the agents’ commission, the marketing of these schemes took a sharp hit as more and more agents were willing to steer their investors towards ‘traditional’ investment products.

The industry is evidently livid, blaming the regulator for their losses and fall in sales of ULIP. Laughs Deepak, “You can’t blame a law for inconveniencing the robbers. The regulator is there to protect the investors and you can’t hold it against IRDA that it is finally taking a note of its job.”

Laughs Deepak, “You can’t blame a law for inconveniencing the robbers. The regulator is there to protect the investors and you can’t hold it against IRDA that it is finally taking a note of its job.”

While enough has been said, written and reported on how these moves by the regulator are bound to push the industry on a back-foot and how an average investor is bound to benefit from the improved value proposition of ULIP schemes, an average investor still finds himself at loss when it comes to choosing investment products, more so with conflicting recommendations and reports from various sources. The new guidelines have definitely made the schemes more investor friendly. Ironically, ULIP lost its sheen in the very year when it should have garnered maximum investor attention in its new avatar. The trends clearly seem to be driven by marketing wisdom rather then regulatory reforms.

Is ULIP Really Worth It?

The new regulations might solve a part of the problem, protecting the unenlightened investors from unwittingly falling into a trap and ensuring that investor interests are protected when they invest in ULIP. But, does this make ULIP an investor-friendly product? Deepak has his doubts, “Even if the charges are capped, ULIP continues to be an extremely expensive option, not really recommendable.” Despite the fact that ULIP no longer have exorbitant charges, they are still the maximum that can be charged and there is always a possibility of securing similar benefits at a lesser cost. For instance, a well balanced combination of mutual funds and term plan can be a way of securing a diverse portfolio with compatible benefits. The investors must carefully examine their options and make a decision based on a meticulous cost-benefit analysis.

Diversity happens to be one of the most abused terms in the world of investment and one of most oft cited reasons for including ULIP in the overall portfolio. Deepak clears the air, “One has to understand that when we talk about diversity, we are talking in terms of asset classes and not vehicles. So, you can have only mutual funds in your portfolio but if they invest in different classes like equity, debt, real estate and so on, you have requisite diversity.”

Every investor must understand and comprehend the basic mode of operation of every available investment instrument, assess their financial goals and circumstances and choose wisely. Factors like liquidity become crucial if your investment is locked in. Lack of liquidity, according to Deepak, is a major concern with ULIP and one must be very careful before committing once finances in such schemes.

Caution Is The Key

With or without regulations, investor caution continues to be crucial and one has to invest as per individual financial goals. Says Mishra, “Awareness is the key. Had I blindly relied on my agent’s advice all these years, it is hard to estimate the money I would have lost.” While it is not possible for every lay investor to be market savvy, a basic degree of awareness is important.

The need to exercise caution multiplies in face of the possibility of agents not being completely honest about more than the nature of your plans. Amit Jamwal learned this lesson the hard way when despite asserting that he did not want a ULIP, the agent nevertheless invested his money in one and to make the situation worst, vanished without ever providing him with proper documents. Stuck with a plan with massive administration charges and two premiums already paid, dejected Jamwals rues, “I hate all agents. I am losing all hope that anything can ever be done about them.”

Jamwal’s experience is hardly an isolated case. Every month, Akosha receives multiple complaints with respect to insurance industry and a majority of them concern cheating agents. Our simple advice in all such cases is extreme caution, bordering paranoia. If you feel your agent is hiding something, take immediate precautions, insist on proper documents and do a proper research on the plan before even considering it for investment. What is worst than investing in a bad plan is investing in a plan you actually never intended to.

Beyond the agent brouhaha, the key is to realise that irrespective of how they have been marketed, ULIPs are meant for the investors who intend to remain invested long term. An average investor needs to make an educated choice, aligning the investment with their long term goals, instead of making investment solely with objective of securing quick fix short term gains which can be extremely hazardous especially in volatile markets. The regulator too has ensured long term investment in ULIP by increasing the lock in period. Beyond the mandatory investment period, the length of investment is a crucial factor and the bottom-line is, longer the period, better are the returns.

According to Deepak, “ULIPs should be avoided and the only class of investors for whom ULIP make some sense are people who completely financial discipline. However, people change and so circumstances. What is preferable now may not be preferable tomorrow and short sighted investments are hardly ever wise decisions.”

ULIP can be included in overall investment portfolio but it should be done only after a closer analysis of what these instruments actually entail.. “Ask questions”, says Dwivedi, “your agents/advisors are equipped with all the information. All you need to do is start asking the right questions.” Deepak summarises, “Don’t invest in products you don’t understand or with agents who don’t let you understand. If you don’t know exactly what your investment entails, then don’t invest at all.”

 

 

 

 

 

 

Ever been pissed off at a company? Here are 4 tips on what to do

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Ever gotten off a call with the customer care guys and felt like shooting yourself in the head? If you are anything like me, the word frustration hardly covers it. You go through a range of emotions – shock at how absurd the company’s policies are, disbelief at customer care guy’s excuses, feeling defeated when they don’t agree, feeling relieved when they do. It’s a nightmare in most cases – and getting your own money back or extra charges removed feels like a victory. Forget about the two hours of your life that you lost – those 120 mins are never going to come back.

So what can you do?

We wish we could tell you a magic mantra but there is none (unless you know a big fish at the company you have a problem with – and you are unlikely to know someone at every company you buy products from). So, brace up, here is what you can do the next time you have an issue with a company.

4 tips

1. Call and talk to them. Before you hit me for stating the obvious, you’d be surprised how many times customers don’t even call the company when they get a bad product or service. Calling works. Most businesses understand that they won’t do well if they sell a bad product or service – just that they are not able to manage the scale of their operations. If you are a good negotiator and a calm person, you might even get the problem resolved.

2. If talking doesn’t work, escalate it to higher authorities within the company. When you are on the phone with a company, try to keep escalating the call till you get to talk to someone who understands what’s going on. If this doesn’t work, tell them that you will be forced to go to the ombudsman or file a consumer complaint. Threats don’t work, so don’t waste your breath.

3. Raise the matter with an industry authority. Some industries like insurance, banking, telecom also have industry ombudsman – a person with informal authority to pass non-binding orders for companies operating in a specific industry. Sometimes they will even call you and the company representatives and try to find a middle ground.

4. File a consumer complaint – People have various reasons for filing a complaint, ranging from it being a matter of principle to protecting others from facing the same misery to an ego clash with a company representative, and lastly to obtain compensation. Generally speaking, judges hearing consumer complaint matters are generally very friendly towards consumers and are likely to decide in your favour unless you are being unreasonable. However, don’t expect a fortune by way of compensation – Indian forums are loath to award heavy penalties.

Conclusion

Customer service standards have fallen drastically with a lot of companies trying to achieve scale at the cost of their existing customers. If you are getting a raw deal, the law empowers you to seek justice – so don’t shy away from using the various options for redressal available to you.

 

File your consumer complaint here.

GRIEVANCE REDRESSAL MECHANISM IN RELATION TO AADHAAR CARDS

  1. Whether Aadhaar Cards are mandatory in nature?

Aadhaar cards are non-mandatory in nature. Any person can choose to apply for Aadhaar. Similarly, agencies providing benefits and services may choose to use Aadhaar in their systems and may require that their beneficiaries or customers provide their Aadhaar numbers for these services.

  1. Whether there is an in-built mechanism for answering Aadhaar Cards related queries and addressing grievances?

Concern and issues that residents or UIDAI eco system partner may have in terms of enrolment, authentication and identity frauds etc., are addressed by an in-built mechanism of UIDAI. The UIDAI has set up a Contact Centre that serves as a single point of contact for the organization.

The existing channels of communications are:

  • Voice – Helpline number: 1800 1801947

  • FAX – 080-2353 1947

  • Letter – P.O. Box number 1947, Bengaluru- 560 001

  • E-mail -help@uidai.gov.in.

 

  1. Whether there is an in-built mechanism to deal with issues like non-delivery of card to a resident, spelling mistakes and other demographic errors?

The Aadhaar number should reach the address provided during enrolment normally within 90 days of enrolment. If not, the resident will need to call/email the UIDAI Contact Centre with the enrolment number.

  1. Whether the Registrar/ EA of UIDAI share any role in resolution of grievances?

  • For redressal of grievances of a card holder, the Registrar puts in place a team that would serve to quickly address any matters requiring resolution that may pertain to the Registrar, but may be conveyed to the UIDAI Contact Centre.

  • Queries / grievances which need Registrar/enrolment agency involvement will be transferred to the Registrar appointed nodal officer through a web portal. The time taken for resolutions will be finalized jointly.

  1. What can the Resident do if there are spelling mistakes / other demographic error in his/her Aadhaar letter?

  • During enrolment, even when the data is entered, the resident can see the data entry and is expected to point out errors at this stage. Prior to finalization and printing of the Enrolment Acknowledgment, one more opportunity is presented to make corrections.

  • In the event that both opportunities are missed, the demographic correction may be carried out by visiting the enrolment center within 48 hours of time of enrolment carrying the relevant documents and enrolment slip

 

  1. What if a Resident misplaces his Aadhaar letter /forgets his Aadhaar no.?

The resident can contact the Contact Centre (through phone / letter / email) with the enrolment number and make a request for sending a second letter communicating the Aadhaar number.

In case the Aadhaar number has been used to avail a service or benefit, the resident can contact the agency that offers the same, to obtain the Aadhaar number.

 

  1. What are the reasons for rejection of application and what to do thereafter?

The application for Aadhaar can be rejected if

  • There is a data or process error, or

  • The biometric records match with any existing record

In the first instance, one can re-enroll for the Aadhaar Card.

In the next instance, the aggrieved person would have to register a complaint with the UIDAI. Field investigation will be done by UIDAI to verify the physical existence of both persons whose biometric details matched. If both cases are found genuine, then the person will be provided an Aadhaar.

  1. Whether there is any parallel/alternative forum wherein the customers may file complaints? Can the consumer approach consumer forum as well?

An Aadhaar Card holder cannot approach the Consumer Forum as he is not a consumer, as defined under the Consumer Protection Act, 1986. No fess or amount of any nature is charged while the enrollment process. Thus the jurisdiction of the Consumer Courts cannot be extended to Aadhaar Cards related issues.

Three remedies are available:

  • A public spirited individual or organization may file a PIL in the High Court.

  • An aggrieved person may file a writ petition in the High Court to ask the court to direct UIDAI and its enrollment agencies to perform their duties effectively.

  • A person may file a RTI application if he is denied the reasons as to why his Aadhaar application was rejected or the delivery of the same is unduly delayed.

- Maitrayee Bordoloi

Picture from here.

CYBER CRIME AND THE E-COMMERCE WORLD

With the Internet becoming available at the touch of a button and wannabe computer whiz kids dabbling in hacking for sport, cyber crime has seen an unprecedented upsurge. What makes it infinitely more dangerous than any other crime is the comparative lack of awareness and identification. How could you be expected to know that behind the innocent looking website lurks a compulsive hacker, or worse, consummate identity thief?

cyber-crime

In India, the law on commission of cyber crimes is highly restricted. The Information Technology Act, 2000 is the extent of all there is with respect to cyber law in India. Generally, cyber complaints may be filed for hacking, phishing, identity theft, child pornography, piracy, cyber stalking, credit card fraud and the like.

Cyber crime complaints, when taken in a more liberal sense, are commonly accepted to mean any crime committed with the use of or against a computer or a group of computers. And that, right there, is where the Information Technology Act, 2000, starts to look like a damsel in distress. With the initiation into the marvelous world of smart phones and tablets becoming a rite of passage of sorts for adolescents, restricting cyber crimes to only denote crimes committed with the help of computers is utter ignorance. Again, another one of the many the gaping lacunae the Information Technology Act, 2000 suffers from is that it makes a number of the offences, such as hacking, violation of privacy and tampering with computer source documents, bailable, which puts a big question mark upon its effectiveness.

Cyber Crime Complaints and the modus operandi of the Cyber Crime Cells

A complaint for the commission of a cyber crime may be filed with the in-charge of the cyber crime cells which is present in a number of cities. Even if such a cell is not present in your city, you may file a complaint with the nearest cyber crime cell, provided you brave the dilly-dallying over jurisdiction, which is the hallmark of the Indian Police.

To file a complaint regarding the commission of a cyber crime, it is absolutely imperative that you have certain documents like the server logs, the receipt (if any, and if there is none, that should probably have been your first clue) or any other communication that you may have received from the website, along with a list of the people you suspect may have been involved with the commission of the crime. Alternatively, you could also shoot the cell an email at their respective email addresses. Although the Information Technology Act, 2000 does not expressly provide for a set procedure for the filing of a cyber complaint, the websites of a majority of the cyber crime cells in the country have provisions for the registering of such e-FIR.

The registration of cyber complaint on the website of the cyber cells itself counts as an FIR. Therefore, it is not required that another one be lodged again. After the filing of an FIR for a cyber crime, the police are required to do the usual investigation (or the lack of it) and present the case before a Magistrate. However, one must regularly follow up with the police officer or the Station concerned so as to ensure that their complaint is actually taken seriously.

Consumer Protection Act, 1986: Knight in Shining Armour?

In case a consumer wishes to evade the apathy of the Indian Police, there is another way out. Enter Consumer Courts. Complaints for issues that are related to e-commerce may also be filed under the Consumer Protection Act, 1986. The procedure is obviously similar to that which would be followed in case of a regular Consumer Complaint before the District Courts.

The major edge that the Consumer Protection Act, 1986 has over the Information Technology Act, 2000 is that it deals with the economic loss suffered by the victim and compensates him/her accordingly. Also, one does not need a lawyer to defend oneself in front of the District Forum, which again makes the Consumer fora the weapon of choice for consumers against cyber crimes.

The proverbial can of worms that is E-Commerce

In an age where the Wikipedia is the ultimate authority for anything and everything, the demand for e-commerce portals and the resulting complaints for online fraud should hardly be a shock. According to Ankur Singla, CEO, Akosha, out of the 11980 complaints received by Akosha for e-commerce in the first quarter of 2013, almost 58 percent related to deficiency in delivery (such as delivery of damaged goods, delivery of a different product or non-delivery of goods, even after the payment has been made), 29 percent were for refund of money for non-satisfactory products, while the rest had different concerns.

The Internet is rife with companies looking to make quick money and the reluctance on the part of the customers to step outside the comfort of their homes for shopping (blame it on the sweltering mess of a weather that is the Indian summer) acts as encouragement to completely phony enterprises to set up their own versions of online shopping. Timtara, the brainchild of Arindam Bose, who was recently arrested on charges of Internet fraud of over twelve lakh rupees, is a perfect example. One would think that with the stringent requirements for starting a lawful e-commerce venture would act as a discouragement, but even so, cyber crime continues to increase at an astonishing rate.

The Consumer Protection Act, 1986, only covers that spectrum of cyber crimes, which result in economic losses to the Complainant or in cases where there is ‘deficiency in services’ or ‘defect in goods’ or ‘unfair trade practices’ have been employed by the trader/seller or where goods and services that are not genuine (spurious goods and services) are marketed as such. In the event that any of this is done with the help of a computer or a laptop, it would come under the definition of a cyber crime. More often than not, cases that fall within the ambit of the Consumer Courts involve some sort of pecuniary loss to the Complainant, which is required to be made good by the Opposite Party. The Courts do not concern themselves with the mode of commission of the crime, but only with the final outcome vis-a-vis the customer, therefore providing a more effective structure for consumer protection.

Shortcomings under the Consumer Protection Act, 1986

One of the few roadblocks the 1986 legislation suffers from, on the way to providing justice, is that the consumer generally is required to file the complaint where the company has its registered office or branch office or service centre or even marketing office. For many of the customers, such a procedure is not practically feasible if they live in separate states or even different cities. Though such a complaint may also be filed at the place where the ‘cause of action’ arises, in case of e-commerce transactions, it makes for a very difficult thing to justify in Court.

The Act is also defenseless against companies that have ceased to exist or that have been shut down, unless and until the whereabouts of their erstwhile owners may be found. If an online enterprise vanishes into thin air after the consumer has suffered his loss, the latter will be required to bear the loss so suffered. In such a case, he has no remedy but to take the matter up with the local police or the cyber crime cell.

Desperate times, stringent measures

In view of the recent scams that have taken place online, in the form of fake online retailers, travel companies, etc., it is high time that the government takes cognizance of the fact that cyber crime is here to stay and provide for efficient measures to curb the same. Where the perpetrators of crime are a step ahead of the law enforcement agencies, the consumer will always be at the receiving end. Judges or Court officials must be provided special training to deal with technology related matters, so as to better their understanding of the cases they deal with. Since traditional litigation is apparently insufficient to combat high tech crime, there is all the more need for bringing in newer approaches through Electronic Courts (E-Courts) and Online Dispute Resolution (ODR). These are already in vogue abroad and need to be incorporated into the Indian system to prevent E-Commerce experiences from turning into nightmares for the customer.

- Vasudha Misra, IInd Year, RMLNLU

Picture from here.

Will Local Body Tax have any repercussion on innocent consumer?

Mr. Rajesh Puranik landed at Mumbai airport from the States last week to shop extensively  or his impending wedding and was puzzled to read the slogan ‘No LBT, No OCtroi’ on the shutters of shut down shops. Mr. Puranik left the country today morning without completing the task at his hand. Why so? Why could not Rajesh shop?

1828590

The answer is very simple; all the shops in Mumbai have not opened for public for almost a week now.

One may again ask the same question; WHY?

The reason being the traders are protesting against the Local Body Tax (LBT) that will be charged to them. The Chief Minister has clearly stated that the agitation may continue but he is not willing to bend the rules with respect to LBT and all the traders are obliged to abide by the rules.

Why is LBT introduced?

Prior to LBT, Octroi Tax was levied on the traders. Octroi was a local tax collected by the State Government or the City Municipality on articles brought into a town for local use. Levy of Octroi was based on the value, weight, length and number of articles and the basis of levy would vary from State to State or even between different local bodies within a State.

In 1965, Bombay Muncipal Corporation (BMC) introduced Octroi Tax in Mumbai. It was a tax to be levied on specified articles at their time of entry into the limits of the Greater Bombay for consumption, use or sale.

Octroi Tax is an age old concept & it also leads to serious traffic problems at the entry points of city, so a need was felt to replace this act. Till March 2013, almost all the countries in the world abolished Octroi Tax except Euthopia & one Indian State Maharashtra.

Finally in April 2013, Maharashtra abolished the Octroi tax & replaced it with LBT.

What is LBT?

LBT is the tax which will be imposed by BMC on the entry of goods into a local area for consumption, use or sale therein.

It is a self assessment or account based method of paying local tax, where the traders declares their tax liability by submitting records. Unlike in the Octroi regime, trucks carrying goods will not be subjected to physical checking at check posts.

What is the difference between Octroi and LBT?

Octroi, abolished in almost all municipalities in state, is paid every time a consignment enters the city, at octroi check posts whereas LBT attempts to speed up the goods movement, stressing self-declaration of goods by traders who will maintain LBT accounts.

What formalities are required for LBT?

Traders whose annual turnaround is more than Rs. 3,00,000/- have to register themselves with the BMC. Traders have to compile list of all goods procured within the month, feed the matter into the software provided by the BMC to check their LBT liability. They have to make payment once every 40 days using online portals, cheques, demand draft or cash through a designated bank or counters of the civic bodies.

Who is liable to pay LBT?

Any trader with a turnover of purchases and sales more than or equal to Rs 5000/- will have to pay LBT. This will include almost every trader even local kiranawala or even local panwala.

Why are traders opposing LBT?

The LBT Officers can check any vehicle at any point in time; they can inspect traders premises and also verify records for past 5 years. The Officers have the right of attaching traders’ property too.

It is the contention of traders that when Value Added Tax (VAT) was introduced they were promised by the government that after VAT all other taxes like Octroi would be abolished. However two years back, the government decided to increase the VAT by 1-2% stating that the government needed it to cover the amount that was not being collected after Octroi was stopped. The traders’ fraternity hence feels deceived by the Government and also does not want to get involved in additional paperwork required under LBT.

Should a consumer be worried about LBT?

VAT is in place across the country, LBT will be like double-taxation. Prices of goods are affected by VAT as well as by state or municipality-level taxes. Also, complying with various rules on self-declaration, record maintenance, account books, etc. could be an added cost under the LBT regime, which will indirectly be shifted to customers.

Further increment in tax will increase the cost of consumers’ lifestyle too.

For example: There is difference in price of petrol and diesel in various cities, Mumbai prices is higher than Delhi prices because of Octroi. After the introduction of LBT almost all the commodities that the consumers buy in Mumbai will become costlier than any other city.

Picture from here

Identity Crisis! A Consumer’s True Tale Of Loss Due To A Bank’s Negligence.

Tadka Take

Did you know that RBI regulations require that every person withdrawing an amount greater than Rs. 50,000 via cheque must carry an identity proof?

More importantly, does your bank know this?

Before if it doesn’t know this or doesn’t comply with this regulation, you may be under a genuine risk of losing moeny to any fraud walking in with a cheque and withdrawing money from your account.

Don’t think this is possible? We too thought so, until Sanjeev Kumar came to Akosha with a story that truly scared us. Below is his story in his words.

Consumer Story

I got a cheque of Punjab National Bank numbered- 487459 worth Rs. 30,00,00/- issued by Anand Mohan Prasad. I deposited it on same day to a/c 1255000105101487 for which I got an acknowledgement . The cheque, however, got liquidated and the amount was paid to other person without my knowledge  and hence I lost all the money. Following all drama when I asked to bank for identity proof of the person who got my money, they refused to provide me the same. RBI’s circular for KYC/AML document – RBI/2011- 12/72 DBOD. AML. BC. No. 2 /14 .01.001/2011-12 July 1, 2011 clause 2.5 says that every customer withdrawing more than Rs. 50,000/- from cheque have to submit identity proof. In spite reminding the bank several times in written, they have refused to cooperate with me. It has been over one and a half month but I am yet to hear from either RBI or PNB.

Tadka Take 2

This consumer’s plight is extremely disturbing not only because the consumer lost a huge sum money on account of bank’s negligence but also because it reveals the casual attitude of the bank towards something as fundamental as an RBI guideline. Such an attitude exposes the issues in the system as a whole that make every consumer in this country vulnerable to such frauds. We really hope that the bank rectifies its ways and not only responds and addresses this consumer’s concerns but also takes stringent measures to avoid such instances in future.

 

Mac Troubles! A Consumer True Experience About Defective Macbook Horrors!

Tadka Take

Apple symbolizes an extremely coveted aspiration in today’s world. But when a consumer who acquires his dream Mac gadget and it comes with its own harassment plan of defects and issues. This is what exactly happened with Col. Ramdas Buche when he purchased his new Macbook Pro. Below is his story in his own words.

Consumer Story 

I wanted to purchase a high end and extremely efficient system which would give me long term immaculate service. Accordingly I went in for purchase of Macbook Pro 13″ from an agencycalled Algorithms in Nagpur. To my surprise in the first week of its purchase it went to service center because it could not load and run CD. Next week it was sent again because it could not read or write CD. As I went along, again help was sought because it could not pick up any of the peripheral Hardware like scanner, printer, data card etc. running otherwise smoothly with available machines with me. Past month was the climax of its hardware failure and the machine was to be sent to service center twice because it was not booting at all and also twice screen display had gone blank separately resulting in change of certain hardware components. You will agree with me that once an engine of brand new car is opened within first week of its purchase then it keeps going to Garage frequently. Similar thing seem to have happened in case of this purchase and I have now ran out of patience because after purchase of MacBook on 26 Apr 2012 till 26 Aug 2012 i.e. within the period of four months it has been to service center six times that too with ever increasing fresh defects each time relating to Hardware failure of serious nature. Thus one knows what future holds for this particular machine piece.  Frankly speaking , I had gone in for purchase of first rate product from best Agency because I sincerely wanted very efficient, reliable and hassle free service from the product on longterm basis and Apple being the indisputable world leader and Algorithms being the best agency who has carved niche for itself not only in Nagpur but whole of Vidarbha. However with ever increasing problems I had not been able to use this machine even for single day after purchase and I am also scared to carry it with me for my tours to other cities or abroad because of its abrupt failing tendencies. What would I do if this fails to open up or suddenly goes blank when I am away from Nagpur to to other city or abroad and who is going to fix it up for me. I will be also making scene of myself in crucial presentations or data display when it fails like it is behaving presently for very routine and basic functioning due to defective hardware and it would inadvertently point to my professional failure. As a result of its periodic packing up in above manner frequently and unreliable tendencies ,I am forced to depend on my old Desk top and laptop for all the possible mobile or static functions as hither-to-before after purchasing this Macbook. As I have said earlier APPLE is indisputably worlds best brand and I fully understand that an odd piece may go defective and in the present case it seems that I am the victim of such probability. 

Tadka Take 2

While Akosha’s team has been trying address Col. Buche’s issues as soon as possible, it is undeniable that he has undergone a lot of harassment. It is the duty of both brand as well as the authorized agency to ensure that such instances do not recur with other customers and even in the unavoidable cases where such issues do arise, they are addressed as soon and as efficiently as possible.

Dear Fraud! ICICI Bank Held Liable For Customer Losing Money In Fraudulent Transaction, To Pay 1.75L.

complaint against ICICI Bank, to pay 1.75 lakh to consumer who lost money due to fraud

complaint against ICICI Bank, to pay 1.75 lakh to consumer who lost money due to fraud

Imagine, one fine day, over 1 lakh are withdrawn from your account–without your knowledge or involvement.

We for one would have definitely had a mini heart attack.

But it happens, way more frequently than any of us would be comfortable to admit. And in most cases, the bank refuses liability, pinning the blame on the consumer and washing their hands off the issue completely.

A consumer forum is New Delhi, however, decided to depart from the norm and pinned the blame squarely on the bank, making them pay up not only the lost amount but also compensation for harassment.

A consumer, holding a salary account in ICICI Bank, received 5 SMS alerts in January 2009, each relating to withdrawal of Rs.25,000 from his salary account, totalling Rs. 1.25 lakh, within minutes. He  immediately contacted the bank, which, after conducting a probe, informed him that some fraudsters had removed the money from his account.

The complainant had alleged that the bank was negligent with regard to safety of customers’ confidential information, including password, and as a result he suffered financial loss. The bank obviously denied that it was negligent, and contended that the possibility of involvement of the consumer himself in the alleged fraud cannot be ruled out.

The forum however was less than sympathetic towards the bank considering the idea of the consumer himself sharing the information absurd and considered the possibility of involvement of the bank employees in the fraud was much more probable. The forum held that there was gross negligence and deficiency in service on the part of the bank which caused the heavy financial loss to the complainant and directed the bank to return him the amount along with compensation of Rs.50,000.

ICICI Bank to pay Rs.1.75 lakh for customer’s loss due to fraud (Livemint)