HLB Swipe For Cash

This is taken from a previous post I had written in Nov 2008, which may still be applicable to some credit card nowadays.

If you have a Hong Leong Bank credit card like me, you'd be notified of the "Swipe for Cash" promotion.

These are the wordings for the promo you see everywhere, and on their website:

• RM1 Cash Back with every RM50 swipe
• Swipe anywhere, anytime on any purchase
• Plus extra cash back: 5% at Tesco, 1% at Parkson
  
• RM1 million cash back to be given away
  

Their hidden terms and conditions (small print) are not mailed to you. You'd have to search for it online on their website, and quite hidden too. Here is the link after much clicking and searching.

Below are the T&C number and my comments in the bullet point.

5. Qualifying swipe is defined as a minimum retail spend of RM50 in a single receipt.

• You have to swipe a minimum of RM50. If you swipe RM1000, you still get only RM1 cash back.

6. Cash back is awarded for each block of 5x qualifying swipes, capped at a maximum of 20x qualifying swipes per month.

• This means you only get RM5 when you swiped for 5-9 times, RM10 for 10-14 swipes, and so on. You do not get any cash back if you swiped only 4 times.
• You swipe more than 20 times (>RM1000) but you only get max of RM20 cash back.

7. Split transactions shall be strictly disqualified. Cardmembers with multiple transactions of more than one (1) time on the same day, at the same card acceptance channel/ terminal/ merchant shall be disqualified.

• So you thought "hmm... today i am buying a total of RM160 from Giant, so I should split the goods to blocks of RM50 and perform three transactions". You're wrong. They will disqualify your swipe for the cash back reward.

12. To participate, Cardmembers are required to register with HLB via SMS once within the Campaign Period to 36600 and type HLE16-digit Credit Card No.

• Each SMS you sent is charged normal SMS rates, but each SMS confirmation you receive is charged RM0.30! Even if you SMS-ed the wrong code or cc number, you are still charged RM0.30!! Happened to me when I sent HLB instead of HLE!! Why the heck do they choose HLE as the code when their bank is called HLB!!

3. Both Principal and Supplementary Cardmembers are entitled to participate on an independent basis and any attempt to combine or merge their transactions will be disqualified.

• You have to SMS, and your supp card holder also has to SMS! What cheats! For HSBC Padini promo, we only need to send one SMS for both cardmembers.
  

22. The cash back shall be credited into the Participant’s credit card account for which the credit card account shall be the card used by the Participant for SMS registration within ten (10) weeks after the end of each calendar month and shall be reflected in the Participant’s credit card statement, itemized under "Swipe For Cash (Oct08)".

• Wow, they pay us back only 2-3 months after we swiped! What kiam siap ppl. HSBC gives us the Padini vouchers so quickly.

27. It is Cardmembers’ responsibility to notify HLB Card Centre in writing no later than 31 March 2009 for non-receipt of cash back. Failing which, the Cardmembers are deemed to have had received and accepted the cash back from HLB and all unclaimed cash back after 31 March 2009 will be forfeited.

• wah... if we forget after 3 months (so long) and didn't inform you, u mar quiet quiet keep our money?
  

29. The Participant shall personally bear and be responsible for ALL incidental costs relating to accepting the cash back including but not limited to any applicable taxes, insurance payments, registration fees, processing fees, handling fees and all other personal expenses whenever applicable.

• I donno wat these incidental costs mean, but I don't like it when they say I have to personally bear it.

This one is the shocker:

16. No Reward Points will be issued for ALL retail spend from the month of successful SMS registration by the Participants until Campaign Period ends.

• WTH! If you wanna reward ppl for cash back, and take away the reward points, you're like telling us "you work for us, and we will treat you to makan KFC/McD everyday, but we won't pay your gaji instead".

No wonder they can run this promotion for 4 months! -_-"

I only see this useful when you purchase RM50 per swipe and not more. Or you use for petrol only (cos no reward points are given anyway).

HLB Payment Relief Service (PRS)

I am using a Hong Leong Bank credit card, and here's what I got in the mail last week.



Sorry for the poor quality photo, as it is from my low quality phone camera.
Here's what it says:

At Hong Leong Bank, we value your support and loyalty. Having your best interest at heart is important to us, hence we would like to extend to you a brand new service. Introducing Hong Leong Bank Credit Card Payment Relief Service.

What is Payment Relief Service?
- Payment Relief Service allows you to defer your credit card payment for 1 month*.

How Can I Enjoy This Service?
It's so easy, no forms and no calls required. Just defer your payment for the month shown below and the bank will do the rest.


Benefits

• Spend on something urgent
  
• Flexibility on cash-flow
• No penalty for non-repayment

Sounds good eh? I don't need to pay for 1 month, interest-free! BUT, for HLB, there's always a catch. After reading the Terms and Conditions carefully, item 9 states:

"A nominal fee of RM5 will be charged and posted to Cardmember's Account in the event the Cardmember accepted the PRS."

Haha... what a fake! Maybe they want to catch people off-guard and earn the RM5.

Okay, this service is only useful if a Cardmember owes HLB a huge sum for that month, so huge that the interest imposed, if by not paying, exceeds the RM5 fee. That's the only use for this service.

Another sucky misleading service/product by HLB!

Etiqa Takaful: Mesra

I was approached by some Etiqa agents after withdrawing money from an ATM machine. They set up a counter at the Maybank branch, opened til 11pm. There were at least 4 agents stationed there.

First, they try to attract your attention by asking you if you have a Fixed Deposit account. Then they tell you the rate is only 2% now (July 2009). Why not save in our Etiqa Takaful product where you will get 5.5% - 8% per annum? Sounds good eh?

This will be told to you: "You only have to save a minimum of RM100 per month. You will even be covered with a life and disability insurance under the Takaful scheme. This plan's maturity is 30 years, but you can stop and withdraw your money any time."

Your money will be channelled into two accounts: Tabung Tabarru (which invests in halal products and companies) and your savings account. 80% of the profits from both accounts will be added into your savings account each year, whereas the remaining 20% is given to Etiqa under the Islamic profit-sharing concept (mudrabaha).

Some agents are trained to tell you that this is not an insurance or investment policy, and this is a pure SAVINGS plan / contract.


This is what they usually hide:

• Part of your savings is donated to the Tabung Tabarru. 1st Year: 100%, 2nd Year: 90%, 3rd Year: 50%, 4th Year and onwards: 25%. The rest goes into your savings account, which you may withdraw from at any time. So, if you decided to stop saving/cancel within the first year, you won't get anything back.
• As a huge portion of your savings is donated to the Tabung, you're left with a maximum of 75% in your savings account. Even if you get 5.5%-8% profit, it will not be much considering the minimum 25% 'used for the insurance'.
• As an Etiqa agent pointed out in a LowYat forum thread, it will take roughly 12 years before your 'investment'/savings break even! This is awfully a long time.
• Overall, for 30 years, the annualized returns is approximately 3% only. It is so much better to invest elsewhere.

So, as a savings plan, this product really SUX! 3% for 30 years, no way. Even the FD rate will increase in the near future. But you may see it differently if you were to view it as a life insurance product.

Welcome Post

This blog aims to educate the readers as not to get cheated and scammed by the illegal companies and more importantly, the legal financial institutions in Malaysia.

It is also to voice my grouses at the bad services and products I've come to known or tried before, which are aplenty in this country.

Please do spread the knowledge around, so that your friends and relatives do not get tricked into buying something or signing up for something which was explained out of context.