Sunday, July 17, 2005

How to rip-off muslims

A local bank has launched a so-called "interest-free" credit card billed as "the first interest-free card in the Sultanate that allows its customers to enjoy all the benefits of international credit cards".

How does it work?
Total spending during a particular month is payable in 12 equal instalments. In addition to the monthly instalment amount, the first statement of the account that customers receives will also include an administrative fee, which is a percentage of the amount the cardholder spent.
So by taking a flat percentage as a fee on every month's purchases instead of charging monthly on the actual balance, that makes it interest free? Looks to me like the "administrative fee" will end up costing the ripped-off users more than regular interest.

3 comments:

hibbalicious said...

muscati its pretty much like taking a loan from that new islamic bank of britain, im not sure if you have heard of it though.

illogicist said...

interest by any other name is still interest. What makes it worse than interest is the added element of deception.


Welcome back

Rockin' Hejabi said...

To the Muscatis,

Asalaamo alleikum from Doha. Yes, I agree with what Z said, although they're calling it "islamic" it's still euchery! The Quran criticises the Pharisees (the old Jewish religious leaders) for following the letter of the law and exploiting loopholes in the law to commit sins (totally ignoring the spirit of the law and it's true meaning)....and that is exacally what this is.