ZestMoney's EMI Scam: A Detailed Analysis of Customer Reports
Recently, numerous customers have reported issues with using EMI (Equated Monthly Installment) services provided by ZestMoney through platforms like Flipkart. These claims include the non-arrival of promised cashbacks, continuous tech issues, and misleading billing practices. This article will delve into the details of these reports and provide insight into why customer trust in ZestMoney's EMI services is crumbling.
Case Study 1: Discrepancies in Cashback Offers
One of the most common issues reported by customers is the lack of promised cashbacks on their EMIs. For example, a customer who had undergone an EMI purchase through ZestMoney on Flipkart with a product costing Rs. 58,000 experienced this. Initially, the interest refund was advertised as Rs. 2,000, which was offered as an upfront discount, bringing the principal down to Rs. 56,000.
However, the advertisement of a no cost EMI was misleading. The customer was charged interest at a rate that increased their effective monthly payment by around Rs. 19,300 over a period of 3 months, totaling around Rs. 61,000. In addition, a TUC (Transaction Underwriting Cost) charge of approximately Rs. 2,600 was levied, which was not disclosed during the initial payment process. If the customer wishes to avoid this, they must repay the original principal amount plus the TUC charge, reaching a total of Rs. 58,600, a loss of Rs. 600.
Customer Reports and Support Issues
Customers have also reported significant shortcomings in customer support and communication. Despite multiple attempts to resolve the issue, ZestMoney continuously cited technical problems as the reason and promised that the cashback would be credited in 15, 20, and 30 days respectively, but no amount has been credited so far. The company has since removed the option to contact their customer care, and the only avenue left is through emails which are met with technical issues.
One frustrated customer states, They are fraud. They didn't provide the cashback which they offered me before the order, and when I called their support team, they didn't even pick up my call. They are like cheaters! The plot thickens as customers have pointed out that Flipkart, the platform on which the purchase was made, has partnered with ZestMoney, potentially adding to the confusion and the lack of transparency.
Trust and Legitimacy of ZestMoney EMI Services
Further, there are concerns about the legitimacy of ZestMoney's EMI offerings. Some customers have highlighted instances where they were duped into using ZestMoney’s services, with the company charging massive fees, such as a Rs. 12,000 loan processing fee and an additional Rs. 13,000 for loan closure charges. Unfortunately, some customers found themselves in a situation where they had to challenge such charges without any support from regulatory bodies, as such companies are not monitored by the Reserve Bank of India (RBI) ombudsman.
Moreover, some customers insist on finding safer alternatives, such as taking a loan against their ornaments, an old-time Bollywood reference to borrowing from traditional lenders. They warn against falling for such scams, which claim to offer no cost EMIs but end up costing more in the long run.
Based on the customer reports, ZestMoney's EMI services are highly questionable. While they seem to be a convenient and lucrative option for some, the risks associated with these services provide a compelling reason to reconsider the use of ZestMoney's services, especially for those looking for a hassle-free and transparent purchase experience.
Stay informed, read user reviews, and make informed decisions when considering any EMI services offered by financial institutions.