Charged late payment fee on credit card
I have a credit card from Mashreq and availed a “Convenient cash” loan from them for a 36-month period on August 15, 2013. I was told that I would need to pay a monthly installment close to Dh1,750 per month starting from September 13, to which I agreed.
When I went to pay my first installment in September, I did not know how to pay. So, I called Mashreq’s call centre and checked the same and the officer informed me that I could pay as usual with my credit card number. I made the payment of Dh1,750 accordingly to my credit card account number, which I do as usual. To my surprise, I received the first statement stating my amount was due and had a late payment fee. I reasoned it out with them by email and with the proof and my amount was transferred from my credit card account to the convenient cash account on September 25 with the reversal of the late payment fee done on October 19.
For October, I had arranged for a payment of Dh1,750 by a way of balance transfer through another bank for the second installment as I had to go out of the country for 10 days. Once I returned, I was told that the balance transfer payment could not be paid to the convenient cash account number given, as the amount was not accepted. I called Mashreq and saw it online, too, as to why there is an issue as well as checked my new due date and due amount to be paid. The new due date from the system was reflecting November 13, 2013 for an amount of Dh3,753.42 for which, I thought that since the due date has changed and the amount doubled, I did pay Dh1,750 to my credit card account instead of the convenient cash account and placed a request to transfer the same from my credit card account to my convenient cash account. The same was acknowledged to me through an email by Mashreq that it was already transferred but had not been transferred physically to the accounts in October, as promised. This had resulted in a wrong amount being my due amount.
I paid the third installment of Dh1,750 on November 13, but still found a late payment fee charged on November 19. I tried to convince Mashreq with proofs and a number of times to solve my problem for the wrong due amount. Ultimately, the Dh1,750 has been transferred only on December 3 from my credit card account to my convenient cash account, which should have been done by them as acknowledged in October itself and I could have avoided the late payment fee. Why would a customer like me be penalised for Mashreq’s staff mistake?
My concluded query to Mashreq:
- My payment due date start from September for a monthly amount close to Dh1,750.
- Considering the above, even if we take Dh1,750 for four months (September to December) it would still be Dh7,000 (4*1,750) to the amount paid as Dh5,250 (3*1750). Hence, the due amount should be (7,000-5,250) = Dh1,750 only.
- The amount advised by Mashreq is Dh3,493 instead of Dh1,750 on or before December 14.
- Even if Mashreq has to consider the late payment charges of Dh259 (for no mistake of mine) it would still be Dh2,009.
From Mr George Venatius Anthony Chelladurai
Abu Dhabi
The management of Mashreq responds:
We are pleased to share that all late payment fees has been reversed and we have addressed all his concerns. Mr Chelladurai has been contacted and the same was communicated to him. He was satisfied with the resolution.
Mr Chelladurai responds:
I really appreciate the efforts put forth by Gulf News in co-ordinating for the proper escalation with Mashreq to get to the root cause and analysing the issue. What was not possible by me in convincing all the call centre officers of the bank in the past four months was well co-ordinated and managed by Gulf News to have the right and serious people in Mashreq assigned for a solution.
The officer concerned from Mashreq who responded to this issue after the initiation from Gulf News, considered it seriously and was well mannered in listening to me and addressing the issue.
I would really recommend everyone in the UAE to consider Gulf News as an effective medium of escalating concerns when issues reach deadlock situations. Thank you Gulf News and Mashreq for understanding my concern and resolving it.
I received my pay order on December 31 from Mashreq and I have deposited the same in my account.
Editor’s note: If you have similar consumer complaints and wish to raise them with the newspaper, contact us by email at readers@gulfnews.com
