Hesham A Syed

January 4, 2009

Banking and Financial Frauds – Proposal to prevent !

Filed under: Economics & Finance,English Articles — Hesham A Syed @ 10:32 am
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Sharing a proposal  + Comments + opinion exchanged – hesham syed

Institution of Banking problems and frauds – A proposal to Share

Institution of Banking problems and frauds – A proposal to share with Friends – Please read it in sequence 1,2,3

Institution of Banking — A proposal made by Shuja Khan / My comments and further responses – please read in sequence. 1, 2 ,3

 

 

3.)  DEAR BROTHER HESHAM             WAA
 
MASHALLAH YOUR KIND ANALYSIS  IS SO PRECISE IN TERMS OF WORDS WRITTEN YET  COMPREHENSIVE AND ELABORATE IN MEANING.
 
WE DO WHAT WE CAN , ALLAH WILL DO WHAT WE CAN’T AND AS I TAKE IT , ALLAH ALLOWS US TO DO WHAT WE TRULY WANT TO DO.
 
SHUJA KHAN.
——————————————————————————————-

2) . Dear Shuja sb,

Aoa

Thank you for sharing your thoughts – appreciated.

 

What ever you have proposed is to bring a revolution in the banking circle and system – Yes, I agree we as Muslim are indebted and obliged to take steps in that direction but one of the biggest hurdle or inhibition which comes across is how do we connect and integrate the Islamic philosophy in to the conventional and present day banking internationally. I have had the opportunity also to go through and deal with even as a banker with many so called Islamic instruments developed  but it all boiled down to half hearted effort and intentions not being right —– All this change will only come when we will change internally and care more for our contributions and acheivements for the permanent life here after by establishing  socio-economic justice in this world which is one of the fundamental message of Islam – Welfare , Peace etc – all these things are associated to Socio-Ecomomic Justice. Unfortunately the Banking institutions have been adopting to policies and system negating the Welfare and Peace process and have created classes in the society making this world itself a Hell.

 

It is a subject , very simple to understand if one likes to understand and very complex if one refuses to understand and purposely wants to be connected to Taghoot ( Evil Darkness).

 

Please keep trying , knocking at each door – who knows this may change a few and might trigger change at micro or macro level – Allah Kareem.

 

Best wishes

Hesham Syed

1.) Shuja Khan Proposal :

 

Subject: BANKS AND CREDIT CARD SCAM

Atten :

1. THE GOVERNOR,                                                           THE PRIME MINISTER

    STATE BANK OF PAKISTAN                                           THE CHAIRMAN , CBR

2. MR. AZHAR HAMID                                                         THE CHIEF JUSTICE OF PAKISTAN.

THE BANKING MOHTASIB                                               THE CHIEF JUSTICE OF SIND.

assalamualaikum wrw

THE INSTITUTION OF BANKING

 

TODAY IT IS A REQUEST, TOMORROW IT WILL BE A DEMAND AND AN OUTRAGE DAY AFTER.

SO KINDLY READ IT CAREFULLY.

 

IN ORDER THAT THE SACRED AIM OF EQUITABLE DISTRIBUTION OF WEALTH IS MADE A MOVEMENT, TO START WITH THE BANKS AND OTHER FINANCIAL INSTITUTIONS MUST BE TRANSFORMED INTO INVESTMENTS AND FUNDS MANAGERS SO THAT THE RICH MAY HAVE ACCESS TO THE MONEY OF THE DEPOSITORS ONLY  AS EQUITY / SHARE MONEY AND NOT AS LOANS, EXCEPT IF SHORT TERM RANGING BETWEEN 30 TO 90 DAYS FOR MEETING EMERGENCIES / CONTINGENCIES OR OF PERSONAL NATURE TO ONLY INDIVIDUALS, IN ORDER TO LET THE WHOLE HUMANITY ENJOY THE FRUITS OF PROGRESS, PRODUCTIVITY AND PROSPERITY WHILE A GENERAL CONSENSUS IS PROMOTED FOR THE WELL  BEING OF OUR INDUSTRIAL AND COMMERCIAL ENTITIES.

ALL BANKS AND OTHER FINANCIAL INSTITUTIONS MUST ,BY LAW, BE OWNED AND MANAGED BY SMALL INVESTORS , ALLOWING THEM  TO OWN A MAXIMUM OF 0.01% SHARES INDIVIDUALLY SO THAT ALL FINANCIAL HEGEMONY , EXPLOITATION AND UNDUE PROFITEERING COMES TO AN END AND ANY AND ALL BENEFITS ARE EVENTUALLY RETURNED TO THE ACTUAL SOURCE OF FUNDS I.E. THE DEPOSITORS AND PUBLIC AT LARGE  WITH EVERY ONE AND ANY ONE TO BE ELIGIBLE TO BUY / OWN SHARES.PROFIT SHOULD BE A MEANS TO SUSTAINABILITY AND GROWTH, IT MUST NEVER BE ALLOWED TO BECOME THE GOAL AND THE  SOLE DRIVING FORCE. THE GOAL SHOULD BE TO SERVE WITH AN ELEMENT OF COMMERCIAL VIABILITY TO CONTINUALLY GENERATE REASONABLE EARNINGS.

TRIED AND TESTED SUCCESSFUL PROFESSIONALS  MAY BE GIVEN THE TASK OF MANAGEMENT SUPERVISED BY THE WELL KNOWN AUDIT FIRMS AND A BOARD OF DIRECTORS CONSISTING OF LARGE DEPOSIT HOLDERS.

CREDIT CARD SCAM

 

ENOUGH IS ENOUGH…………HOW COME NEW CARD BILLS ARE CARRYING A  5 % EXCISE DUTY ON CARD CHARGES.

 

YOU NEED TO LOOK INTO ABNORMALLY HIGH AND CRUELLY DESIGNED SCHEDULE OF CHARGES ON THE CREDIT CARDS IN THE INTEREST OF THE PUBLIC AT LARGE.

 

THE BANKS ARE DEDUCTING BETWEEN 2.5-3.0 % FROM VENDORS THOUGH THEY ALLOW THEM NO BENEFIT FOR LATE REIMBURSEMENTS.

 

SOME VENDORS PASS THAT BURDEN ON TO THE CONSUMERS SUCH AS TRAVEL AGENCIES ETC.

 

THE BANKS ARE DEBITING CARD HOLDERS :

 

36 % P.A. ON CASH WITHDRAWALS PLUS ONE TIME WITHDRAWAL CHARGES OF 2% OR MORE WITH A MINIMUM OF RS.300 TO 500..

 

2.33—3.25 % P.M. ON CARDS OUTSTANDINGS PLUS LATE PAYMENT CHARGES IF NOT SETTLED ON TIME THEREBY PUNISHING THE ALREADY TROUBLED CARD HOLDERS TWICE FOR NOT BEING ABLE TO AFFORD FULL AND TIMELY PAYMENT.

 

ON TOP OF THAT RS 300-600 FOR LATE PAYMENT IF CHEQUES DELIVERED TO THEIR DROP BOXES PRIOR TO DUE DATES OF PAYMENTS BUT NOT ENCASHED BY BANKS DUE TO HOLIDAYS.

 

PLUS RS 500–600 AT TIMES RS.1,000 ON GOING OVER THE CREDIT LIMIT WHEREAS THE BANKS  OR THE VENDORS FAIL TO INFORM THE CARD HOLDERS WHEN HE IS GOING OVER THE LIMIT WITHOUT ANY REGARD TO THE FACT THAT SUPPLEMENTARY CARDS USED BY FAMILY MEMBERS DO NOT ALLOW THE CARD HOLDERS WITH UP-TO-DATE KNOWLEDGE ABOUT THE CARD USAGE ALL THE TIME.

 

AND RS 500 IF THE CHEQUE  NEEDS TO BE REPRESENTED JUST FOR SIMPLE MISTAKES IN WRITING CHEQUES OR DUE TO DELAY IN CLEARING OF AFFECTS/ CHEQUES DEPOSITED BY THE CARD HOLDERS IN THEIR BANK ACCOUNTS.

 

BESIDES RS 2,000 —4,000 ANNUAL FEE.

 

IT IS A CASE OF GROSS SOCIAL INJUSTICE AND BEYOND.WHEN CASH IS PAID IN SETTLEMENT OF CARD DUES, BANKS CHARGE CASH PROCESSING FEE OF RS. 200 TO 300 AND WHEN PAID BY CHEQUES

THEY TAKE 4—5 DAYS TO GIVE CREDIT.

 

ONE VERY SERIOUSLY UNFAIR PRACTICE WHICH NEEDS TO BE SEVERELY REPRIMANDED  IS THE PERSONAL LOAN ISSUE OF THESE POOR CREDIT CARD HOLDERS WHERE THESE BANKS CHARGE MARK-UP ON PRINCIPAL AMOUNT  WITHOUT ANY REGARD TO INSTALLMENTS COLLECTED MONTH AFTER MONTH WHEREBY THE LOAN OUTSTANDING IS DIMINISHED BUT NOT TAKEN INTO ACCOUNT FOR THE PURPOSE OF MARK-UP CALCULATION AND ON TOP OF THAT CUSTOMERS ARE NOT PAID FULL LOAN AMOUNT BUT ONLY THE AMOUNT AFTER DEDUCTING FIRST INSTALLMENT.WHEN THEY SAY IT IS 1.5% PM ACTUALLY IT IS OVER 30 % PA.YET THEY DARE TO CHARGE ANOTHER  5 TO 10 % SURCHARGE IF SUCH LOANS ARE SETTLED FULLY PRIOR TO THEIR FULL TERM.

 

BANKING INSTITUTION SHOULD BE RID OF THESE PROFESSIONALLY UNETHICAL MANAGEMENTS WHO DO NOT UNDERSTAND THEIR RESPONSIBILITY TOWARDS CUSTOMERS.

 

IS IT NOT A FINANCIAL TERRORISM ??? ALLOWING AND ENCOURAGING THE FOREIGN FINANCIAL INSTITUTIONS TO PLUNDER THIS ECONOMICALLY EXPLOITED NATION THRU BAD BANKING REGULATIONS / LEGISLATION.

 

ONE THING WHICH IS EVEN MORE SERIOUS. THAT  THE CARDS ARE BEING PROCESSED AND ISSUED THROUGH TELE MARKETING, LOW CALIBRE PEOPLE (COMMISSION BASED AGENTS) WITH MINIMUM OF PAPER WORK AND SCRUTINY ABOUT THE CREDIT WORTHINESS AND ABILITY OF THE INDIVIDUALS FOR SETTLEMENT OF THE DUES,GIVING WAY TO ALL SORTS OF IRREGULARITIES.

 

THE CUSTOMER SERVICES PEOPLE AT THESE BANKS ONLY HAVE STEREO TYPE ANSWERS AND NO SOLUTIONS WHEN CONTACTED.

 

BANKING INSTITUTION IS ALSO ALLAH’S BLESSING BEING SOCIALLY IMPORTANT IN IT’S BASIC NATURE BUT LIKE MOST OTHER AREAS OF MANKIND WELFARE HAVE BEEN CORRUPTED BY THOSE WHO WERE EXPECTED TO RATHER IMPROVE UPON , THIS INSTITUTION OF VITAL IMPORTANCE HAS ALSO BEEN HIJACKED BY LESSER VISIONED,SELFISH AND GREEDY FEW.

 

MAY I TAKE THIS OPPORTUNITY TO REMIND YOU ABOUT OUR NATIONAL PRIORITIES TO USE THE FUNDS AVAILABLE ON INFRASTRUCTURE AND INDUSTRIAL DEVELOPMENT,PROMOTION OF EDUCATIONAL FACILITIES,LOGISTIC SUPPORT,HOUSING / ENVIRONMENT,CREATION OF WORK OPPORTUNITIES FOR THE JOBLESS AND GOOD GOVERNANCE RATHER THAN SPENDING

ON CONSUMER ELECTRONICS, HOUSEHOLDS AND WHATEVER……………!

 

I HAVE SET THE IDEA ROLLING…….BUT THERE ARE THOSE ……WHO OUGHT TO ACT.*

 

Today it is our sacred privilege to do it voluntarily.

Tomorrow we will have to do it yet no one will give any credit for doing.

 

SINCERELY,

 SHUJA R. KHAN 

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