Stuck
I would like to highlight the inconvenience I faced with RAKBANK.
A couple of years ago, I was offered an NMC Platinum credit card from the bank. The sales representative pitched it at our office and offered me the plan. Subsequently, while collecting my documents for the credit card, he also proposed an alternative savings plan whereby I could save Dh500 each month. I was informed that after two years, I would be able to withdraw this amount. However, the sales representative was not truthful at all.
He told me that I could keep saving for two years with a minimum Dh500 which I would need to deposit into a Fast Saver account and the auto debit would occur from my account into the saving scheme. So I applied for the saving scheme and the saving plan was duly activated. I received the kit and was chased by a sales representative to send him the signed document of the savings plan. Whenever I asked him about the duration of the plan, he informed that I would be able to withdraw cash after two years. Last year, I received a text message from the bank that the sales representative who had sold me the bank services was not working with RAKBANK anymore.
I had a hunch about checking up on my saving plan, and sure enough, was left in a state of shock after talking to a customer care representative of RAKBANK when they told me that the information I was provided by the previous sales representative was not true — the plan didn’t work the way he had briefed me.
They tried convincing me to keep the savings plan and Fast Saver account, saying that I have to save and contribute for 20 years, and withdraw upon its completion. Despite many follow-ups over the next few months, I didn’t get any update on the status of the plan and whether I would be able to get my saved amount, which was deposited in the Fast Saver account. My SALAMA - Islamic Arab Insurance savings scheme was recovering that amount from my RAKBANK account.
I called the bank to check and they said there was no record of this particular sales deal or phone conversation so they couldn’t help and they asked me to get in touch with SALAMA (to deal with my ambiguous situation). However, the customer service representative I was in touch with had previously promised that he would send my complaint to his senior manager and someone would get touch with me. The response came after many follow-ups and their manager was always informing me that they are helpless and couldn’t do anything more regarding my case.
When I called the bank, a customer service executive asked me to check directly with SALAMA and discuss my issue further. After a few weeks, I got a call from the bank regarding my logged complaint, asking me to deposit one year’s savings at once and to freeze the plan for six years. At that point, I could withdraw the amount, as the breakeven point would have been met, but I would still lose approximately Dh2,000 as per the bank’s representative. All this happened when I was badly in need of my savings’ money for my wedding and I was left with no savings and got cheated by both the sales representative and RAKBANK.
Despite my interest in cancelling the plan and getting my savings amount back, the bank has been asking me to settle this issue by paying the equivalent of one year’s savings and freezing the account.
Till today, I have not got any solution from the bank, nor SALAMA. I get plenty of calls from RAKBANK’s sales team, stating that my savings premium is due and to please make the necessary financial arrangements to benefit from my savings plan, for which I need to wait for 20 years. I now feel like I have been cheated by not just the representative, but the bank as well, due to which I have to borrow money from other sources. Now I am left with no answer.
From Mr Kiran Pereira
Dubai
Mr Ian Hodges, Head of Personal Banking, RAKBANK, responds:
Thank you for giving us an opportunity to justify our stance on the issues raised by Mr Pereira, RAKBANK customer. Please note that RAKBANK only markets and distributes products offered by SALAMA - Islamic Arab Insurance Co. (P.S.C.). Mr Pereira had submitted the duly filled and signed SALAMA insurance proposal form along with relevant documents including a signed illustration. These documents clearly note the Plan Term (including surrender charges) and state that the fund value and encashment value are not guaranteed by SALAMA and are subject to surrender charges, currency exchange rate and the cost of benefits.
After receiving the duly signed proposal form and before forwarding the same to SALAMA, we arranged for a telephone call to Mr Pereira to confirm the product features, including premium and plan term. The policy allows a free look period of 21 days from the policy issue date during which the policyholder can request for cancellation of the policy in writing without incurring any charges; this is clearly mentioned in the related policy Terms & Conditions which were duly accepted by Mr Pereira.
In February 2013, we had spoken to Mr Pereira and informed him of our inability to accede to his request. Since the receipt of your e-mail, we have again reiterated our earlier response to the client.
We will be glad to provide any further clarification as required.
Mr Pereira responds:
Despite Gulf News’ involvement, the bank stands by its old decision. Hence, I would request the bank that when dealing with such cases, they need to drive the point that localisation must be considered when selling a product to expatriates. Many don’t have job security and all employment contracts are based on short-term periods. Thanks to Gulf News for all the support on their end.
(Process initiation: April 20. Response from organisation: April 22. Process completion: April 23)
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