Sir: During the past decade or so, commercial banks in Pakistan have been aggressively pursuing retail and consumer banking. One of the products of this business is the issuance of credit cards that mostly target people from low-income groups. For this purpose, banks hire contractual employees and commission agents, who lure needy people into buying credit cards. But they do not explain the whole truth about mark-ups and other terms and conditions that are present in a lengthy agreement, which is mostly in favour of the banks. As long as customers pay their bills within the due date, there is no problem. Banks normally encourage clients to make the minimum payment to earn mark-ups. The real trouble starts when a client makes a late payment and defaults. My experience is that for late payment, banks charge Rs 500 as a late fee penalty and a three per cent monthly mark-up is added in the actual bill for the next month in case of minimum payment. Thus, a vicious circle begins and banks encircle credit card holders. The mark-up can go up to 50 percent of the actual purchases. Recovery and collection agents of banks arrogantly and aggressively follow clients in a very insulting and derogatory manner. They keep calling the customers and visit their offices and homes and harass and threaten their families. This is a long ordeal. I have been through this experience. I used to hold a credit card issued by a well-known multinational bank and defaulted, as there were a few disputed transactions that had been entered more than once for one purchase. I requested the bank resolve the issue, but it did not listen to my pleas and said that this could only be done within 12 days after receiving the bill. While my dispute with the bank was ongoing, its credit card and consumer banking divisions were taken over by a local bank. The new management has arbitrarily, without any prior warning, blocked the accounts of many cardholders, including mine. Hundreds of people are running from pillar-to-post to settle their outstanding amounts but the new management is not helping them. Those who had no accounts other than the credit card with the old bank are still considered defaulters. Those who have no money in the accounts they maintain with the local bank, which has taken over the credit card operations, have got waivers of up to 50 percent. Those who had some money in their accounts with the local bank are simply helpless and are not getting any waivers. It is requested that the State Bank of Pakistan look into the issue to resolve the problem of customers, who are willing to pay their bills after resolving the disputed amounts. After all, the customers were not consulted or informed by the new bank management of the ex-parte action during the purchase of the multinational bank. MUHAMMAD AYUB MINHAS Islamabad