My bank increased credit card charge from Dh300 to Dh3,000

Not what I signed up for!

I have had a credit card from Mashreq Bank since last year. As per the terms when I got the card, I was told that the profit rate would be a standard Dh300 if I had any outstanding dues. Out of the Dh300, Dh150 goes to charity and Dh150 was for their administration costs. Now, when I indulged in the maximum limit of the card, they decided to put the profit rate at 3.2 per cent of the outstanding balance! From Dh300, they are now charging me more than Dh3,000 on my balance. Is this fair? Today, a representative called me and started trying to justify that they have the right to do so, because I had signed the terms and agreement! He means to say that even if they apply another administration charge of Dh10,000 monthly, I have no option but to pay.

I chose this card, thinking I will be governed fairly. Don’t I have any right to refuse this, keeping in mind that I chose this card because of the promise that it’s a standard monthly charge and there is no interest attached to it? I would like Gulf News to help me cancel this profit rate and revert to our previous agreement.

From Mr Salim Ahmad

Dubai

The management of Mashreq Bank responds:

Thank you for escalating the complaint of Mr Ahmad for our feedback.

In early November, Mr Ahmad had directly approached Mashreq subsequently and we have addressed his issues to his satisfaction.

Mr Ahmad is an Islamic Credit Card holder. The methodology of charging profit on these cards were revised by Mashreq in line with Sharia Compliance and Central Bank. As a result, the profit percentage had increased, causing Mr Ahmad inconvenience.

Since he is our valued customer, we resolved it by offering him an easy payment plan at a nominal profit rate. He has agreed to the rate, however we await his revert on the amount of outstanding that he wishes to convert on the payment plan.

He has also been advised on the status of his card and the payment due date, to avoid further charges.

This will be closed to the satisfaction of Mr Ahmad upon his revert. Thank you once again for writing to us and seeking our feedback on the complaint.

(Process initiation: November 11. Response from organisation: November 12. Process completion: November 25.)

Editor’s note: Do you have similar issues that you would like to raise with us? You can write to us at readers@gulfnews.com.