AEON Credit Card Excessive Finance Charge

Just to share this with greater community about this excessive finance charge from AEON, so you are aware of such a different practice compare to other banks.
I lodge a case to BNM, I got a rather irresponsible reply from them, saying "We would like to inform you that AEON Credit Service (M) Berhad (AEON) is a non-bank institution. For any inquiries or complaints related to their products, please be advised to contact AEON..."

To give you a perspective, below is a statement from Public Bank as a base comparison.
I owe Public Bank around 3k, the finance charge was close to RM60.

[attachmentid=11272244]

Whereas, I owe AEON around RM200, but the finance charge was close to RM40+
This is even worst than Ah Long!!!

[attachmentid=11272245]

My August 2022 (10/8) statement balance was RM 1592.34 and minimum payment was RM 1404.58 (due date 30/8).
On 29/8 (before the due date) I made a payment of 1404.58, which is the minimum payment, leaving an outstanding of RM 187.76.
Surprisingly, my September 2022 (10/9) statement showed a finance charge (10/9) of RM 43.70 which is clearly unreasonable.
If my previous outstanding of RM187.76 could generate an interest of RM43.70, that's 23.27% monthly, or 279.29% p.a.
Clearly, it is not 15% p.a.
If it is 15% p.a., it would be somewhere around RM2.35 and not RM43.70.

I called up the customer service, and the agent said it was calculated based on final outstanding, which is complete nonsense.
Even with September statement balance, RM 1481.56, 15% p.a. = RM 18.52

So I requested them to provide the calculation and the explanation from AEON was if you did not settle the full amount, the finance charge will be computed even from the previous statement, item by item.

Compare to other banks' practice, it should be calculating the interest from the outstanding amount from the due date. See the difference?!?!

Lastly, let me show you the calculation shown by them.

[attachmentid=11272267]

I'm speechless with such a practice!!!

I'm going to call them to cancel the card. AEON is simply not following the standard practice by other banks (at least I don't see such excessive interest by other card providers)
What make them think they are so special?!?! ...and it is a big disappointment that BNM is not protecting the consumer by allowing such practice which differ from other banks.

Not the same calculation between AEON and other banks.

I used Public Bank far more than AEON, if talking about transaction, I have more "past transactions" from PBB than AEON.
You can compare the statements I posted for both PBB and AEON, you can see the difference.

Also... PBB stated "ii. Finance Charge is imposed on Outstanding Non Cash Advance Balance that is not paid by due date of the respective Statement, calculated from Due Date until full repayment."

While AEON is different - "d. Finance Charges of Outstanding Balances / Caj Kewangan Baki Tertunggak
Finance Charge will be imposed on the portion of outstanding balances that relates to finance charges and other fees or charges (excluding late payment charge and service tax) that were carried forward from balances posted in previous statements"

See that?
PBB = not paid by due date of the respective statement;
AEON - carried forward from balances posted in previous statements

That explained why AEON finance charge is so excessive, while PBB finance charge makes sense.

I don't agree with it.

The calculation remain the same across all banks - yes, just that it doesn't calculate from previous statements as in AEON.

As you can see from my statement, I have outstanding of 3.6k with PBB (means those are from previous transactions), and I paid 600 before due date.
Of course I have been losing the 20-day interest free period for future transaction after the due date, not previous transaction that has been posted in previous statement.
The interest is calculated from the due date on a daily basis until it is fully settled, not calculated (backdated) from the transaction date as in AEON.

That's why I have been charged by PBB for ~RM60 for an outstanding amount of 3k + future transaction after the due date = briefly 5k * 15%/12 = RM60+ nicely matched;
while AEON charged me RM40+ for an outstanding amount of ~RM200 + backdated transactions + future transactions (as per the spreadsheet shown)
if AEON is based on the calculation like other banks, then I would see briefly ~200 + 750 + 500 = 1450 * 15%/12 = RM18 instead of RM40+
Thanks to the backdated stuff, hence the RM40

Let's the numbers speak itself.

[attachmentid=11273824]

We have a scenario here:

> AEON August Statement Balance = RM 761.50
> Fully paid before due date = RM 761.60
> So, I should enjoy 20-day interest-free period

> AEON September Statement Balance = RM 1592.34
> Paid minimum amount before due date = RM 1404.58
> Interest = RM 43.70

This is the calculation from AEON (sent by AEON, not my worksheet)
[attachmentid=11272267]

As you can see, even the previous statement was fully paid, the 20-day interest-free period will be taken away and interest is calculated all the way back from previous statement.

Now, let's find a matching scenario!

[attachmentid=11273825]

> PBB July and August statements show it was previously paid, no overdue amount
> So, I should enjoy 20-day interest-free period

[attachmentid=11273836]

Let's compute the interest...

[attachmentid=11273837]

Note that, while I am working on this calculation, I realised PBB is using posting date instead of transaction date, while AEON is using transaction date. Interesting!

Now, can you see the difference compare to the calculation sent by AEON?
It doesn't backdate from the previous transactions but merely using the outstanding amount.

Still think the calculation still the same across all banks?
Fine, let me use the AEON method to compute this PBB transactions and see what would happened...

[attachmentid=11273845]

I did not create this method, I copied the method used by AEON in the exact way, you can compare the spreadsheet from AEON and this.

You may argue about BT... sure... let's take the BT part away, there's still a difference between the interest.

As I said earlier, in their T&C...

PBB >>> "ii. Finance Charge is imposed on Outstanding Non Cash Advance Balance that is not paid by due date of the respective Statement, calculated from Due Date until full repayment."

AEON >>> "d. Finance Charges of Outstanding Balances: Finance Charge will be imposed on the portion of outstanding balances that relates to finance charges and other fees or charges (excluding late payment charge and service tax) that were carried forward from balances posted in previous statements"

In short, the daily interest calculation remains the same, but the practices are different. PBB uses the statement outstanding as a start, while AEON backdated all the way back. These different practices generated huge amount of different.

Please do not deviate from the topic. I'm not telling people how to be a good paymaster or how to use their credit card properly or in good behaviour.
My original post was simply telling people that AEON has different practice than other banks in computing interest even though the formula remains the same as f = (B) x (P/D) x R
People might think they are all the same, but in fact NOT. That's the message!

I have shown you the calculation on both sides on real world scenario, and I've managed to compute the same amount of interest on the statement and yet you still can come out with your own theory.

Believe what you believe, I'm not here to convince you. It's up to you to interpret as I have let the numbers speak itself.
Statements were given, scenario's the same. So smart? Compute yourself and prove it you are right.

Members in this forum are not stupid, they can judge themselves over the trail.
People like to talk without showing proof as if they are the expert.
I'm not the expert, I just worked on the logic to see if all the numbers matched and tallied.
Sometimes, the funniest thing is... even the proof is presented, they still can argue (again, without proof).

Lastly, to greater members in the community (not you), please open up the pictures and put side-by-side to compare and understand it.
It helps you to plan your future credit card usage and how to choose your card provider.
I've learned this crazy stuff, so I have decided to cancel the card. Cheers!

I can only give you the fact, that is... (again) AEON is computing its interest in its own way, not the same as other banks.
Good luck to you, regardless of you believe or not, my message to the topic has been proven and passed on.

this one waiveable?

I didn’t managed to ask for waiver for my set but annual fee yes. Got any technique to ask for maybe a rebate instead?

Sidenote: I received quite a number of dm from some of you here, to ask about my pic for Aeon 0% BT, I can give you the contact, but I want to disclaim beforehand first, I don’t want drama later. I have Zul’s contact, but I am not sure…

1. Whether Zul still with Aeon, if he replied to you means he will working with Aeon

2. I am not sure if 0% BT still avail, you can check with Zul directly

3. You got any questions pertaining you can either look for the answers here or ask Zul directly.

Now, at bank's transfer page, no longer have Citibank, so meaning cannot IBG Aeon Credit anymore. anyway to pay the Aeon Credit Card FOC?

With the removal of Citibank... do we continue to select UOB Bank to make payments to our AEON CC ?

How does this work?
Top-up the AEON Wallet and pay the AEON CC using the AEON Wallet funds?

hi, may i know is it possible to waive sst charges for Aeon credit card ?
and how do we cancel the Aeon cc, by calling their hotline ?

AOEN CC charge me SST for this year... any chance to get waiver with AEON ?

Aeon Big Visa Gold got anyone missing the CB for ewallet topup
i did on 1st of the month , 2 straight month did not get the Cb already

has any one made  Aeon credit card payment to Aeon bank via online banking eg from MBB?

This is the new preferred method

Thanks, me no aeon wallet, will find out what is goood there

you can have 2 diff card number under same card 

maybe can split ur online purchases to virtual card for better security, in case any of website u used to purchased online got compromised, u can request for virtual card replacement instantly without need to wait the physical delivery

Virtual credit card no SST? Either they absorb it or they breach the custom regulations

Is it possible to set a lower credit limit for the virtual card?

for sst rebate with aeon, you guys requesting via email or call?