Unmasking Deceptive Advertising: AU Small Finance Banks' SwipeUp Program and Its Impact on Credit Reports

[SmartSave]

I am not frustrated in any way, nor am I upset. How would an enquiry “cause damage” to your credit report? I am just amused at your needless fight with AU. It makes no difference to me. I just gave you what I believed was good advice. You are welcome to keep wasting your time and energy if you so desire. Absolutely nothing will come out of it. Let’s say, after a year, AU agrees to, or is forced by your campaign, to remove that enquiry. Would it matter? The impact of one single enquiry is negligible and fades after a few months in any case.

Thanks for the unsolicited advice. Whether it's a needless fight or purposeful, time will tell. Why should I accept an unauthorized enquiry on my credit report that will now forever carry their enquiry as if I had asked for them to give me a credit card when I DID NOT.

What exactly is the purpose of a credit report? It's a history of your credit worthiness. Every detail matters just like every drop that makes an ocean. The number of enquiries, the active/inactive cc/loans, payment history, etc. some have high impact, some medium, while others low but regardless of their level of impact, they do have an "impact" and not just for now but forever. I refuse to bend to these unethical practices of these evil corps.

If that one single enquiry holds no significances, why is AU SFB still refusing to remove? For them, I'm one of the 140cr people of this country and I'm not even their customer, so for them I hold no value, so they should simply go ahead and remove their enquiry and close the case instead of wasting everyone's time fighting back. Just why are they even fighting and for what? Don't you see what's happening? I'm sure you are not. They simply do not want to acknowledge the wrongdoings as doing so will open a can of worms. If they were so ethical, transparent, and morally correct, they would've been able to respond to my simple questions but they choose to avoid them deliberately, they choose to cherry pick and give generic responses, unable to even explain how their very own SwipeUp system works. Let them keep doing that and for how long?

I'm simply not gonna back off so easily. Once again, I refuse to accept such unauthorized credit enquiry on my credit report. They need to stop misleading prospective customers. They need to fix their glitches. Just because everyone has been ignoring and letting them do whatever they have been doing doesn't mean there won't be anyone who'll stand up ever and call them out. Whether anything comes out of this or not, one thing is for sure, it'll have some level of impact internally and I can see and smell that already. They won't acknowledge it but that doesn't mean I can't see it 🤣

P.S. If you had read my OP, you'd know that this fight isn't just about one enquiry, it's about unethical and malpractices that I'm calling them out for. Many people have read this thread, they know what kinda bank this is and any new visitor in future will also realize what they're getting themselves into. Now that is enough impact for anyone to make an informed decision. Don't waste your time commenting if you care about the time and energy so much bro, just let me handle this. You chill

 

[AlgoTrader]

I wish I had this much time

 

[SmartSave]

I wish I had this much time

You'll have this much time if you get off the forum and work to financial freedom.

 

[AlgoTrader]

You'll have this much time if you get off the forum and work to financial freedom.

Beyond money, I have lot of meaningful things to do in life

 

[SmartSave]

Beyond money, I have lot of meaningful things to do in life

Yeah, I can tell 🤣

....commenting on threads, quite the meaningful thing to do in life.

 

[AlgoTrader]

Yeah, you are the best.!

 

[SmartSave]

Yeah, you are the best.!

That I know but what are you still doing here? I thought you had some meaningful things in life to do.

 

[AlgoTrader]

I enjoy having some fun as well, like how AU bank is making a fool out of you. I'm loving every bit of it.

 

[RAMESH BABU N]

I enjoy having some fun as well, like how AU bank is making a fool out of you. I'm loving every bit of it.

Appreciating the friendly banter.
Keep it friendly.

Everyone has only 24 hours. Some spend max of that for position, some for power, many for paisa. VERY FEW, for principles.

Let us all learn to respect that last category - for they are fighting not for their own self but for the larger interest of the community.

 

[AlgoTrader]

Appreciating the friendly banter.
Keep it friendly.

Everyone has only 24 hours. Some spend max of that for position, some for power, many for paisa. VERY FEW, for principles.

Let us all learn to respect that last category - for they are fighting not for their own self but for the larger interest of the community.

Only reason I first commented on this thread is to keep a tab on these developments as OP was on to something good for the larger community. But looks like things are spiralling out of control with OPs twitter and Reddit getting blocked. Who knows whether AU finds this thread and file a defamation suit for asking others to follow suit. But if it brings peace to OP, he should follow it up to closure. But like I said earlier, I don't have luxury of time to fight with a bank, nor I have patience to do it, as most of the CC reps send out template responses for page long emails. So it'll just boil my blood whenever I see their response and I don't want that . Anyway, peace out and good luck OP

 

[shrewdoc]

Oh it's you again, no wonder you're still wishing...obviously, when the first thing in the morning on a nice Sunday you have nothing better to do than come over and waste time, you'll be wishing you had the luxury forever

You don't know when to stop, do you?

 

[SmartSave]

You don't know when to stop, do you?

lol ok ok chill

 

[SmartSave]

...Who knows whether AU finds this thread and file a defamation suit...

Streisand Effect.

It would be interesting.

 

[talkwithfino]

Everyone has only 24 hours. Some spend max of that for position, some for power, many for paisa. VERY FEW, for principles.

Which is exactly why I personally appreciated @SmartSave on DM just 3-4 days ago. I mean, not everyone can go behind banks at this length. And he might not get Compensation for this; but he is doing his bit for the community by holding this bank responsible for their malpractices.

For instance, If you just srch on YT, Insurance scams; there will come so manyy videos; people have lost lacs of rupees. One such video I came across was where a family lost 80L to Icici Bank. Their fight is still going on with the Icici. Whether they get 80L or not one thing is for sure, tht the news did make headlines (at THT TIME) and I am sure it would have reached the right authorities.

I mean, we have really come a longgg way in Banking. From 2012 (the Cobrapost magazine footage of High profile people in Banking involved in money laundering, to the rise of unethical inhumane practices tht were used by recovery agents at tht time) till now we have come a long way. There are occasional cases of inhuman debt recovery methods; but I would certainly say the situation is much better than wht it was during 2012-13.

So hats off to his true efforts.

 

[divykk]

Background
AU Small Finance Bank has this program called SwipeUp Credit Card Upgrade Platform which they advertise here:

https://www.aubank.in/personal-banking/credit-cards/swipe-up-credit-card-upgrade-platform

Here are some snippets of their advertisement on their landing page:





Misleading Promises and Unethical Practices

Isn't it tempting? They promise a lifetime free card, a higher credit limit, and a straightforward 3-step process. All you need to do is enter the first 6 digits of your other bank's credit card, and you'll have the chance to compare their offerings before deciding to apply.

Deceptive Reality
Well, guess what? It's not that simple. Despite the enticing ads that lead you to believe you can evaluate their options and then decide to apply, the reality is different. They process this as a full-on application, checking your CIBIL report along the way. This setup forces you down a path where it's hard to turn back due to their process design. You thought you were comparing, but they treat it like you're already in the application process, even though their ads don't mention this aspect.

What's even more frustrating is that nowhere on their SwipeUp page, including FAQs and Terms & Conditions (See attached PDF), do they mention that hitting your credit bureau is a requirement, or that they'll access it. I've scoured these sections multiple times, and there's zero mention of this crucial detail.

My Unintentional Journey
So, what did I do? Based on the info I saw on their landing page, FAQs, and terms, I thought I was still in the evaluation phase. I believed I could decide to apply only if I found something appealing. But to my shock, they went ahead and checked my CIBIL report without asking for my explicit consent.

Technical Glitch and Unmet Expectations
Furthermore, their website experiences a technical glitch that redirects the entire process into a standard application route, rather than the intended path of the SwipeUp program (or so they state). Throughout the process, I was never prompted to provide the first 6 digits of my other bank's credit card. Instead, the process continuously requested complex and unrelated information, eventually leading to a card selection page displaying cards with charges – a far cry from the advertised and promised offerings.

Support's Response
When I raised this concern with their support team, they advised me to ask for the removal of the application and try again from the same page. However, they informed me that they wouldn't be able to remove the CIBIL enquiry that was conducted without my consent or knowledge.

Deeper Concerns
Now, here's the issue: the hard enquiry itself isn't my main concern, as a single additional hard enquiry won't significantly impact my credit history. My real concern is how their misleading advertising is negatively affecting everyone's credit reports. On top of that, their technical glitch remains unresolved. Instead of addressing it properly, they casually suggest requesting application removal and retrying. And here's the kicker: retrying will result in another hit to the CIBIL report.

Taking a Stand
I believe it's crucial to address this situation, not just for myself but for the benefit of others as well. My aim is to encourage transparency, responsibility, and ethical practices. Despite my attempts to convey my concerns to their Level 1 support, I've received only generic responses. As my next step, I've already reached out to their CC head and PNO, providing them with a detailed account of what transpired and my requests.

Future Actions
If they acknowledge the issue, rectify the unauthorized credit enquiry, and address the problem, then I might not need to escalate this to the B.O. (Banking Ombudsman). However, if they persist in denying the problem, my next course of action will involve lodging a formal complaint with the B.O.


Understanding and Ethics

I fully understand and respect the process of applying for a credit card, with the understanding that a credit report enquiry is part of the approval process. In this case, the situation is different – it wasn't my intention to apply, but rather to compare and then make an informed decision as advertised. The way they processed my request feels unethical and unjust.

UPDATE: 13 Sep, 2023​

The Fight is ON. The PNO doesn't want to acknowledge the concerns and continues to deliberately ignore and shift the blame on to me but I'm not going to back off so easily. I've gone ahead and filed a formal complaint to RBI B.O. and while that case is going on, I want you to come forward and help me with this fight. It's not just about my credit report, it's about each one of us and how this bank is casually damaging the reports and continues to dupe prospective customers.

If you want to support the fight, you can please retweet, comment, and mention the bank handle on X (@aubankindia).
We need to take a stand together. We all be silent or let go, this bank and many like these will continue to damage our reports and practise unethical stuff. Who's losing at the end? It's us. Our credit report is getting damaged, not theirs. So they enjoy this privilege while we suffer.

Here's the Post/Tweet:

Update: 20 Sep, 2023​

The bank continues to neglect and the new discovery is made of them violating FPC guidelines by RBI.
You can read more about this in detailed thread here (Please RT/Like/Comment):

This sane thing happened with me as I was just checking for offers using my other cards and later realised tgat they have made an enquiry.

 

[SmartSave]

This sane thing happened with me as I was just checking for offers using my other cards and later realised tgat they have made an enquiry.

Welcome to the club!

Try writing an email to pno@aubank.in and md@aubank.in (both handled by same team but do cc). Share your concern. The more people ignore, the more they continue. So it's important people raise their concern. This needs to be fixed.

 

[SmartSave]

BREAKING NEWS!

RBI Banking Ombudsman sent a reply from AU Bank and AU Bank has as evidence attached a document of screenshots demonstrating a process that was not what I went through and further, they have successfully got caught in the trap by acknowledging the process involves asking for first 6 digit credit card number of my existing bank and then the card selection page is shown and the same is stated by them that I dropped the application at the card selection page.

Further, they sent the screenshots with the URL of a different domain just to mislead RBI.

Now here's the fact which I'm gonna challenge. I was never asked for the first 6 digit credit card application and without which you cannot go to the next steps or see the card selection page, so how did I end up on the card selection without providing the existing card number as per their process? So that clearly is an evidence in itself that their system has a glitch due to which I never provided any number and if they claim I did, I'm demanding them to furnish those 6 digits and if they can't, then that is a clear evidence and how they're misleading not just the customers but now to the RBI Banking Ombudsman too.

I'll share their response and my response shortly with screenshots. Man, this bank is next level in trying to mislead everyone. I hope RBI actually reads these facts and understands what is happening here. This is a serious concern because if this bank can mislead RBI, then we as customers are nothing.

 

[SmartSave]

FYI, They attached screenshots from this domain which looks like their internally used domain: https://aubankuat.in/

They can literally fake it the way they want to alter facts in their favor. Anyone can produce such a bogus portal and mislead facts the way they want it. Can you imagine? Damn, what a crazy bank.

 

[SmartSave]

AU Small Finance Bank reply (Sent to RBI)​

Reference: - Complaint No. xxxxxxxxx, referring to the captioned complaint, we furnish our response as under:
Dear Sir / Ma’am,

This is with reference to the CMS complaint received with ref number xxxxxx by applicant Mr. xxxxx regarding credit card application and CIBIL enquire removal.

We wish to submit that applicant applied for AUSFB credit card application with lead ID xxxxxxx on xx-August-2023.
AUSFB credit card application was initiated by applicant through self-digital journey and his application is pending at card selection page as applicant left the journey in between.

We wish to submit that at time of credit card application sourcing / journey the credit limit was reflecting ₹x,xx,000.
However, we wish to submit that before applying the Credit Card application, we have taken his explicit consent before hitting the Bureau for further processing of AUSFB Credit Card Application and below is the clause which we have mentioned in Credit Card application apply TnC.

‘I authorize AU BANK and/or its associates to verify relevant information at my office/ residence or to contact me/my employer/Banker/Credit Bureau/RBI/ Telecom Service provider or any other source to obtain or provide any information that may be required for confirming membership requirements or maintaining my account in good credit standing.’

Further we are enclosing the sample screenshot of terms and condition wherein customer have to give his consent, T&C in word format.
The swipe up program, which is an innovative platform that offers an upgraded Credit Card on existing Credit Card from other banks. AU Bank doesn’t promise to offer an upgrade against all Credit Cards available in the market. Under this program upgraded AU Bank Credit Card is issued to the best of bank efforts and customer’s application is also evaluated under Bank’s policy criteria.

We wish to submit that if customer initiated the journey through swipe up platform and if applicant was not eligible for swipe up platform basis eligibility criteria of swipe up program than applicant redirected to normal journey. Applicant was moved to normal journey post applicant’s clicking on the Pop-up shown on the screen that“ Hey we don’t have an upgrade available for you at a movement If you wish to check other card offering , please click on ok and proceed” after that customer clicked on “ok” . Journey sample enclosed for your reference. Applicant approached our internal channel for same concern, and we have informed him that CIBIL enquiry is done with the applicant’s consent to check for availing any type of credit card since there must be a pre-enquiry of applicant’s credit history, thus we are unable to remove the CIBIL enquiry. We are enclosing the OTP logs for your kind consideration.

Further, we wish to submit that post receipt of his recent communication from your hon’ble office, we have contacted with applicant and informed him that his application is pending for submission from his end, therefore consent to trigger the applicant’s CIBIL is given by the applicant himself by clicking on “I agree to the Terms and Conditions of Credit Card application” on the landing page wherein Mobile OTP consent is given.

However, CIBIL enquiry is done with the applicant’s consent to check for availing any type of credit card, thus we are unable to remove the CIBIL enquiry.

Accordingly, we have communicated to him over call as well as his email id.

---

My Response sent to RBI​

Response to AU Small Finance Bank's Misleading Reply - Complaint No. xxxxxxxxx

Dear Sir / Madam,

I am writing in response to AU Small Finance Bank's reply to Complaint No. xxxxxxxx, regarding my concerns over the deceptive SwipeUp program and CIBIL Removal.

I have carefully reviewed AU Small Finance Bank's response, and I would like to bring to your attention several inaccuracies and misleading information provided by the bank to your hon’ble office:


1. Misleading Screenshots and URL Discrepancy:

AU Small Finance Bank has attached screenshots of their internal system, presenting it as if it were the customer portal. However, a careful examination reveals that the URL displayed in these screenshots belongs to their internal system and not the actual portal that customers access. This deliberate attempt to mislead your hon’ble office is evident and raises questions about the authenticity of the information provided by the bank.

Attached evidence by the Bank shows a URL from domain that is not active: https://aubankuat.in/
<Same attachment they sent was attached>

Actual Portal Page Screenshot that customers see from the active public domain: https://aubank.in/
<Actual page attachment>

2. Missing Prompt for Credit Card Information:

The bank claims I was on the card selection page during the application process. However, as per their own demonstration screenshots, I should have been prompted to provide the first 6 digits of my credit card from other bank before reaching the card selection page (see screenshot number 4 in file “Multiple_wrong_BIN_hit_(1).xlsx” sent by Bank). I challenge AU Small Finance Bank to furnish my 6-digit credit card number, as they claim it is part of the process. I can confirm that I was never asked for this information, emphasizing a clear glitch in their system. This fact is corroborated by their own Level 1 support, who acknowledged a technical glitch over the phone yet AU Small Finance Bank’s escalation team continues to overlook and avoid this question. I humbly request your hon’ble office to demand AU Small Finance Bank to attach my 6-digit credit card number from other bank, their failure will demonstrate and serve this fact as an evidence of misleading and trying to manipulate the hon’ble office with a completely different process from what was shown to me.

3. Consent for CIBIL Enquiry:

AU Small Finance Bank claims that explicit consent was obtained before initiating the CIBIL enquiry. However, I would like to highlight that nowhere in the SwipeUp program landing page, FAQs, or terms and conditions was it explicitly stated that a CIBIL enquiry would be conducted. I have attached both documents for your reference. Terms and Conditions can also be accessed directly through their website: https://www.aubank.in/swipeup-program-au-bankswipeup-program_terms-and-conditions_oct_2022.pdf

Attachments: [au-sfb-swipeup-landing-page.pdf & au-bank-swipeup-program_terms-andconditions_oct_2022.pdf]

<These are same files already shared earlier in this thread, it's nothing but full screenshot of the landing page with FAQs and terms and conditions file>

Screenshot demonstrating one need not accept the terms and condition to generate OTP
<It's a screenshot from the video that was shared earlier>

The terms and condition pop-up as per demonstration by the bank are never shown automatically and were never agreed upon. Notably, customers can proceed to the next screen without explicitly accepting these terms as demonstrated above and below screenshots without accepting any terms and conditions.
<Just the second page screenshot without accepting terms and condtion>


4. Terms and Conditions Acceptance:

The bank has attached a sample screenshot of terms and conditions, claiming that explicit consent is obtained through acceptance. However, the process I went through did not ask me to accept any terms and conditions. I have attached a screenshot demonstrating that the platform proceeded to the next steps without requiring me to accept any terms. This raises serious concerns about the accuracy of the information provided by AU Small Finance Bank. During the process, no terms and condition pop-up was shown nor I clicked “I agree to the Terms and Conditions of Credit Card application.” As that was not required to proceed to the next step.

Here’s a video demonstration of the same where we can proceed without accepting terms and conditions


5. Misleading Advertisement:

AU Small Finance Bank continues to project the SwipeUp program as a card comparison process similar to other banks' comparison engines, which do not require a CIBIL enquiry. The misleading nature of their advertising has resulted in numerous customers falling into the same trap, as evidenced by numerous online reports by other affected individuals. The bank's reply implies a certain process that I did not experience, further emphasizing the deceptive practices.

6. SwipeUp Program Eligibility and Technical Glitch:

AU Small Finance Bank asserts the existence of eligibility criteria in the SwipeUp Program, leading ineligible customers to a normal journey. However, the demonstrated screenshots featuring pop-ups were not presented during my application due to a technical glitch. This glitch, evidenced by the failure to prompt for my first 6-digit credit card number, indicates a system flaw. The crucial eligibility criteria remain undisclosed, despite multiple requests via email and phone, hindering an informed decision. Notably, AU SFB voluntarily adopts RBI's Fair Practices Code V1.3, explicitly committing to explaining such vital information, a commitment unfulfilled throughout the process.

Attachment: [requested-eligibility-criteria-au-sfb-email.pdf]
<An email I had sent to them requesting to disclose the so-called criteria which as of today they continue to ignore and avoid because there are none as it was created out of thin air>

Screenshot below is a snippet of section 3.2 from AU Small Finance Bank’s Fair Practices Code which can be accessed via: https://www.aubank.in/fair-practices-code.pdf
<Screenshot from the above file>


7. Ongoing Support Tickets and Escalations:

Since August, 2023 and as of this email, I have consistently raised these concerns with AU Small Finance Bank through their customer support channels. Multiple support tickets have been generated, and I have escalated the matter to their public nodal officer as well as their Managing Director, Mr. Sanjay Agarwal. Despite providing evidence, facts, and a clear statement that no terms and conditions were shown during the SwipeUp program initiation and the deceptive nature of the SwipeUp program leading to damage to the credit report of the customers, the bank has consistently overlooked my concerns and failed to provide a satisfactory response.

8. Escalation to Key Personnel:

In addition to escalating the issue to the public nodal officer and the Managing Director, I have also reached out to Mr. Gaurav xxxx, Head of Marketing for Credit Card, and Mr. Mayank Markanday, Head of Business for Credit Card who never responded. These key personnel have been informed of the misleading and deceptive nature of the SwipeUp program, backed by evidence and facts. Unfortunately, the bank has neither acknowledged the concerns nor provided a resolution.

9. Explicit Request for 6-Digit Credit Card Number:

Over numerous phone calls and email communications, I have explicitly requested AU Small Finance Bank to furnish my existing credit card's 6-digit number, as they claim it is a part of the process to proceed to the next screen. This request has been made to demonstrate the glitch in their system and to highlight that the credit card application was opened without my consent or knowledge. However, the bank has consistently failed to provide this information, further substantiating the existence of system glitches and the unauthorized initiation of a credit card application.

10. Bank’s Persistent Disregard for Concerns:

Despite providing detailed evidence, facts, and clear communication about the misleading nature of the SwipeUp program, AU Small Finance Bank has continued to disregard my concerns. The bank's response to your hon’ble office contains misleading facts and inaccuracies, raising serious questions about their commitment to transparency and customer satisfaction. And as provided in this response the attachments demonstrate the bank’s deliberate attempt to manipulate facts and mislead your office is a concern that needs separate investigation.

11. Request for Independent Verification:

I kindly request your esteemed office to independently verify the discrepancies in the URLs and the missing prompt for the existing 6 digit credit card information. This will substantiate the evidence presented and highlight AU Small Finance Bank's attempt to manipulate the information provided to your hon’ble office.

12. Misleading Demonstration vs. Actual Experience:

The screenshots provided by AU Small Finance Bank in their response do not align with the actual experience I had during the application process. Their demonstration suggests a specific sequence of screens that I did not encounter, further highlighting the misleading nature of their response. The bank's attempt to showcase a different set of screens from an internal system that is different from actual customer portal raises concerns about the accuracy and integrity of the information provided to your hon’ble office.

I appreciate your continued attention to this matter and your commitment to ensuring a fair and just resolution. Your intervention is crucial to uncovering the truth behind AU Small Finance Bank's deceptive practices.

I urge the RBI Banking Ombudsman to review the presented evidence and request AU Small Finance Bank to retract the unauthorized CIBIL enquiry conducted without my explicit consent or any credit card application. Additionally, kindly instruct the bank to amend their SwipeUp program landing page, explicitly stating eligibility criteria and disclosing the CIBIL enquiry process to prevent potential harm to other prospective customers.

Thank you for your time and consideration.

Sincerely,
XXXXXX

---

Attached their demonstration screenshots file which is from their internal system and not actual portal. None of which was actual. This has to be the lowest this bank can get down to by manipulating facts using an internal system that can easily be adjusted to suit your demonstration and case. Just anyone could setup a bogus portal and manipulate it too, that's so unethical and raises serious concerns.

 

[kirancardfreek]

FYI, They attached screenshots from this domain which looks like their internally used domain: https://aubankuat.in/

They can literally fake it the way they want to alter facts in their favor. Anyone can produce such a bogus portal and mislead facts the way they want it. Can you imagine? Damn, what a crazy bank.

How come they are giving data from test org / sandbox to rbi this is disgusting.