The pangs of using plastic money have just started to ease. Anyone who has gone on a buying binge and then gone on to moan over the soaring credit card bills will rejoice now that the banking regulator ? the Reserve Bank of India ? has issued a set of draft guidelines that seek to stop credit card companies from ripping off their customers through a potent mix of subterfuge, dodgy accounting procedures and odious behaviour.

The first set of guidelines makes a valiant stab at ending the misery that almost every credit card user has had to undergo at some time or the other ? but a lot will depend on how quickly the guidelines are enforced because there usually is a wide gulf between practice and prescription.

The guidelines have already started throwing up a blizzard of questions from credit card users who have good reasons to crow about any regulatory attempt to rein in the credit card issuers who have never baulked at the idea of invading people's privacy and using strong-arm methods to enforce what they believe is right with no effective system for dispute resolution.

How effective are the guidelines curbing malpractices and ensuring that there is no harassment of consumers? Will the guidelines, when finalised, be implemented strictly enough? Are they watertight or are there lacunae that the provisions haven't adequately papered over?

Kanika Ghosh wants to know to whom must a harassed customer turn to (other than the bank) if the problems persist?

This is one of the biggest complaints of credit card users. The queries have to be addressed to customer relations people at a call centre who cannot deal with the problem and are unable to come up with effective solutions. In the meantime, the disputed charges get tagged on to the bill and have to be paid. Failure to do so attracts penalties. Ghosh recalls the nightmarish experience she goes through every time she has a problem with her bill. For starters, there is a new person attending her call every time.

?I keep narrating my story to each person. The only information they give is that I have to send a letter to the regional office but do not give the name or the contact number of any of the top officials,? she said.

The guidelines do address this issue. However, Srijan Nayak, an advocate, says, ?The guidelines should have been more strict. An unsatisfactory response can mean anything from inadequate to no response at all. It would have been more appropriate to have a system of penalising the bank as that would act as a deterrent and make consumers feel that their interests were being safeguarded.?

?What about unsolicited card sellers? Shall people stop calling me up?? asks Prithwish Majumdar.

Rest easy. The RBI says credit card users will be able to put their name and phone number on a Do Not Call list. Lawyers confirm that the guidelines relating to this clause appear to be sufficiently watertight with the apex bank keeping all sides covered.

?However, only time will tell whether banks are capable of completing the paperwork and maintaining such a database. Since most of the trouble is created by the direct selling agencies, it will be a challenge to keep a leash on them,? they add.

?Will the RBI help stop the use of strong-arm tactics by banks in debt collection?? asks Anil Bhattacharjee.

The guidelines talk about this, but are silent on the penalty that might be imposed on banks if these are violated. This could be a major dampener in the implementation stage, lawyers feel.

?In case of a billing problem, do I pay or withhold the amount till the dispute is addressed?? asks Rajan Mehta.

The RBI also covers this issue, but there remains a huge difference in the way such credit card issuers are governed in the US. The website of the Federal Trade Commission of the US says, ?If you find a mistake on your bill, you can dispute the charge and withhold payment on that amount while the charge is being investigated. Of course, you still have to pay any part of the bill that?s not in dispute, including finance and other charges.?

Such clear indications are missing in the Indian draft guidelines. Consumers have to wait and see if the final set of rules has them.

?What can we do about unauthorised charges? asks Simran Bharghav.

The guidelines are absolutely silent on this. In the US, the rules are explicit: ?If your card is used without your permission, you can be held responsible for up to $50 per card. If you report the loss before the card is used, you can?t be held responsible for any unauthorised charges.?

And finally, the question that hits the pocket the most.

?Has anything been done to bring a clarity to the interest rates charged on the credit cards?? asks Kanika Ghosh.

For instance, credit card issuers offer an interest rate of 2.99 per cent ? and hype it up. What they don?t say is that it is calculated monthly.

It actually is 35 per cent annualised ? which makes a pawnbroker less of a Shylock than he is made out to be.

?The representation of the interest rates on an annualised basis is a major step in curbing misrepresentations by the banks to unaware users,? agrees Nayak.

It might also bring about a reduction in the draconian rates being charged since a visual representation of 36 per cent rate is bound to have a lasting impact on the credit card user, adds Nayak.