Give back gratuity
I took a loan from National Bank of Fujairah (NBF), where I have a salary transfer account. I took this loan in August 2013. I paid instalments on the due date without fail until February 2014.
Then, I changed my job in March and informed an NBF representative about my job change. They blocked my account after receiving the settlement (gratuity) cash.
It took one and a half months for me to get my visa stamped and receive a labour card. I visited the bank with all the necessary documents (such as passport copy, visa copy, salary certificate etc). At the time, the bank representative asked whether I need to adjust the settlement amount with my outstanding loan. I replied in the negative and told him the bank could adjust the pending instalment at the time of blocking my account with the gratuity.
Once my salary in April got transferred to my NBF account, I informed the bank representative and requested them to remove the block.
They took three days to remove it and when I checked my balance, the settlement cash was not in the account. I inquired about this with the bank representative and he informed me that it was adjusted with the principle loan amount.
The reason is apparently because the gratuity is not my cash, since I took a loan from the bank, and I have no right to it. I requested them to reimburse the gratuity, but they rejected my request. I would like to know if there any law to do so or not? Does the bank have the right to adjust the settlement cash with my loan without my consent?
From Ms Dhanya Visalan, Ajman
The management of National Bank of Fujairah responds:
Thank you for bringing this matter to our attention. On hearing of the case, we immediately contacted Ms Visalan to address her concerns and bring them to a satisfactory conclusion.
The matter was carefully reviewed and we have agreed to continue Ms Visalan’s loan as per its original terms. The full gratuity has also been released in recognition of her track record with the bank.
Ms Visalan responds:
I received a call from NBF and they asked me about my issues. They have agreed to transfer my gratuity to my account. Thank you so much.
Adjustments based on new package
I have an account and loan with Union National Bank when I had a good salary package but now [with my new job] my income is not enough for the Equated Monthly Instalments (EMI). I requested the bank for any sort of solution according to my present salary. Their answer was that I had to transfer my salary and bring two salaried people as a guarantee — only then would they consider it. Unfortunately, the company where I am presently working is not in the bank’s approved list. I told the bank I am ready to transfer my salary to them but the bank is not ready for any sort of reconciliation for the loan.
From Mr John Paulson, Dubai
Editor’s note: The complaint was forwarded to Union National Bank for comments. However, despite repeated reminders, its management did not respond.
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