Interest rate squabble
I run a small business and have had a current account with RAK Bank, Al Ain, since January 28, 2008. In December 2010, I have received many telephone calls from RAK Bank Dubai, Abu Dhabi and Al Ain branches stating: "You have [completed] three years and [are] eligible to get top-up loan with [the] lowest interest as I already took a loan for Dh100,000."
The RAK Bank loan section staff who handled my file called me and said that all the processes had been completed and I had to come and sign the agreement. Before signing the agreement I found out that it had a high interest rate and the commission charges were 3 per cent.
I strongly objected as they are very high and [was of the opinion that they should] thus be revised. Also, the commission charges should have been applied only to the top-up loan and should have excluded the remaining loan amount (Dh75,000), which I paid commission for already (Dh3,000 for Dh100,000). At that time, they promised me that should I agree to take the loan, the commission charges would be reduced to about 2 per cent.
They said it was possible to revise the interest rate after the completion of three years (at the time of loan approval on January 4, 2011, with just 21 days remaining to complete 3 years). After they promised to reduce the commission charges to 2 per cent, I agreed and signed the agreement (it was noted in the agreement that the commission charges were 2 per cent).
But after receiving my monthly statement, [I discovered that] the bank had debited Dh7,500 — 2.5 per cent as commission for the full loan amount of Dh300,000! After one month I met the manager and explained my issue and asked for the revision of the interest rate and commission charges as promised by their staff. The manager rejected my request and said that there was no way to revise the interest rate and commission charges. The loan section staff issued such assurances to the customer, yet the manager rejected it!
From Mr Abdullah Syed Ali
Al Ain
Mr Ian Hodges, Head of Personal Banking, RAK Bank, responds: The loan application form duly signed and accepted by the customer explicitly mentions the rate of interest and applicable processing fees.
In view of the above, we regret we are unable to accede to the customer’s request for a reduction of the interest rates and the charges levied as he was fully aware of these at the time of taking the loan. At RAK Bank, we strive to ensure the best offering for our customers and to keep their interests prime in all our endeavours.
Mr Syed Ali responds: Of course, I signed the application [but] only because the loan section staff assured me that the interest rate would be reduced after the completion of three years. My question is how could the RAK Bank staff give this assurance and why should the bank’s management reject it?
Furthermore, while discussing this issue with the assistant manager, he told me if I apply for further top-up loan the interest rate will be reduced! But I refused to go for a further top-up loan. So, I kindly request you to intervene to take corrective and favourable action.
Mr Hodges responds:
In response to the issues raised by Mr Abdullah Syed Ali, the bank’s stance remains the same as stated in our previous letter.
Settling of account
Two weeks ago, my e-Life account was suspended. I thought it was a technical problem as I pay my entire bill each month. After calling 101, they told me that I had a pending payment of Dh556 that should be settled from the dial-up account, which was opened in November 2008, but has never been activated.
This account has been closed when I installed the Al Shamil account since dial-up services were not accessible in the building I was living in, located in Al Qusais. It has been one-and-a-half years since I have left that building. The customer service agent informed me that this account was still running under my name and they were billing me each month.
So, they were charging me for a closed and never used account for more than two-and-a half years without suspending the line or even informing me. By that time, the etisalat employee told me to pay the minimum, and I paid Dh50 to get my current e-Life account working. They told me that etisalat had been sending the bills to my postal address in Abu Dhabi. I was surprised as I have never been to Abu Dhabi.
I contacted etisalat and submitted a complaint. They gave me a complaint number. The complaint was transferred to the accounts department and it is still pending there. Every time I call 101, they tell me that they do not have any update from the accounts department and I must wait and see. I kindly request you to assist in solving this problem as I am afraid that they will cut my e-Life account again if I do not pay the balance. I trust that you will consider the above situation. Thank you for your cooperation.
From Mr Amr Al Haj
Dubai
The management of etisalat responds: Kindly be informed that Mr Amr Al Haj’s issue has been resolved.
Mr Al Haj responds: Thank you for your assistance as the issue has been resolved by etisalat. They called me and said that the amount has been waived and the balance is now credited to my account.
Late charges
I took a car loan in 2006 from my previous employer, with my salary being transferred to Standard Chartered Bank. I serviced the four-year car loan, only to receive a call from the bank, sometime between December 2010 and January 2011, that I had an overdue amount of Dh2,800. I asked the representative what these charges were for, and he said it was for all the late payment/insufficient funds.
I told him that every time I missed my due date, I put more money on the account as I was aware of the charges. But to date I still have these overdue charges. I find it upsetting, as I asked him to help me get a discount or reduce it by 50 per cent to finish it up and get all the necessary papers, which will say that I own the car already.
But I got another call in February 2011 and the amount went up to Dh3,200. I told them to wait and that if I had enough money then I would pay them. I would really appreciate if you could help me resolve this matter with them. Right now I can only pay half of the amount they are asking me. Hoping you could help me settle this issue with them.
From Ms Jennifer Baylosis Osabel
Sharjah
The management of Standard Chartered Bank responds: Upon receiving the complaint, Standard Chartered’s customer care unit contacted Ms Jennifer Baylosis Osabel and explained the validity of the charges levied on her auto loan and that have been communicated to the customer and which are disclosed and communicated to customers in the price guide, which is available at our branches and on our website. The customer has agreed to come to the bank on March 26 to settle the charges and then receive her release letter.
Ms Osabel responds: I wanted to thank Gulf News for intervening in this. I agreed to pay the settlement amount and am going to the bank to request my auto loan clearance letter. Once again, thank you.
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Mohammed bin Rashid issues law on Dubai Real Estate Corporation 2011-06-26 13:30:45
