Says Tushar Fadia, card holder of Citibank: "I was hooked by the sales talk of Citibank. But to my regret, I found out later that reality differs entirely from their promises. Not only the charges were exorbitant, but also the services were poor."

The number of such complaints is growing.

Consumer ignorance is fast turning out to be the strength of Indian credit card companies which are growing at a phenomenal rate of 30 per cent per annum. Independent studies have proved that consumers are not even aware of the stupendous rate of interest of about 36 per cent per annum paid on the credit availed.

"I was completely taken for a ride by the sales man of the bank. After I received ahefty statement, I wanted to return my card. Instead, he collected the card on behalf of the bank and withdrew Rs 20,000... I am now contemplating legal action," says Noronha, a Standard Chartered Bank credit card holder.

In fact, an independent study conducted by Credit Card & Management Consultancy on Indian credit card holders revealed some startling facts. "More than 65% of cardholders in India are unaware of the high interest rates charged on outstanding card balances and so end up paying more than what they believe they are paying," says the study.

In order to tap the Indian markets, credit card companies have been falling over one another to entice Indian customers. The issuing banks, especially the foreign banks, have hired outside separate agencies to identify and screen new customers and recover funds from for defaulting clients.

Customers complain that card sellers do not explain their liabilities, the rate of interest, insurance cost and implications of revolving credit.

Says ManishaRathore, a former ANZ Grindlays Bank customer: "I was amazed to see my first statement. Not only I was overcharged, the bank refused to give any explanation... since then I've destroyed my card."

"The ignorance of consumers on credit card business is appalling. Even the well-educated customers are not aware of various catches," says a top official of Consumer Guidance Society of India.

The CCMC study says that 60 per cent of cardholders are unhappy with the hidden charges they are required to pay. Eighty-four per cent of customers believe that they are entitled to an interest free period of 30 days or more in all situations, whereas in reality interest free period is applicable only in those few cases where the monthly bills are settled in full. As per the bank rates, a customer pays an interest of 33 to 26 per cent per annum as compared to 10-15% in the United States.

The credit card issuers is not disputing the problems. "We are aware of this problem... and we are coming out with a guide byDecember-end for all Visa card holders which would educate the consumers about their liabilities," Visa International's Chandra Agnihotri said recently in Mumbai. Says V Krishnan of Standard Chartered Bank: "The responsibiity of using a card lies with the card holders. Our customers are educated through the monthly statement which is self-explanatory."

The CCMC study says that 78 per cent of the cardholders are unaware of the difference between charge cards and credit cards while 67 per cent of the cardholders are unaware of the financial loss they could suffer in case of loss of card with most of the card companies holding the cardholders liable for all expenses incurred on the card until report of loss. In fact, credit card issuers are thriving on the consumer's ignorance and do not make any attempt to enlighten him either. Citibank is presently the packleader with a cardbase of over one million in India.

Stanchart follows with half of that, while others like Hongkong Bank and ANZ Grindlays Bank haveclose to 100,000 each. The Indian cardholders are not aware of the interest rates, processing fees, joining fees, annual fees, add-on cards, transaction fees, late fees, charges on outstation cheques, credit limits, besides a host of other smaller issues, say customers.

Besides, the emerging -- and of course worrying -- trend in the credit card industry is the use of arm-twisting methods of recovery of funds. A credit card customer had to move the court to stop the hired bouncers of the bank from entering his premises.

"While credit card companies do a good job of explaining all about new benefits, services and gimmicks like cricket card, world cup card, family picture card, ATM card, no attempts are being made to educate the customers," says an office bearer of Consumer Guidance Society.

However, an optimistic former chairman of SBI, MS Verma, says: "Credit cards have been here before, but it is only now that the plastic culture is picking up... SBI Cards will seek to carve out a market share of 30 percent by 2000." American Express and State Bank recently launched their credit cards to tap the ignorance of growing Indian customers.