Reader’s complaint addressed

Credit shield cover
On February 5, 2012, I received an SMS from RAK Bank asking me to pay a minimum amount of Dh250.86 for my credit card, which I believe I settled in June 2010. On the night of February 15, the bank sent me another SMS saying that I had to pay a minimum amount of Dh400, even though they told me that it is interest-free. So how could it have gone from Dh200 plus to Dh400 in such a short span of time?

The contracting company I was employed with was badly affected by the global recession in 2009 and I was receiving late salaries from September onwards during that time. I was later terminated from the company which made it hard for me to fulfil my credit card payments. Since I have no intention of running away from my financial obligations with the bank, I visited their branch in Al Ghusais, Dubai, and a representative advised me to send them an e-mail with my request. I e-mailed them on October 20, 2009 and on November 12, 2009 followed up if I could pay the outstanding amount in monthly instalments. As I did not receive any response from them, I visited the same branch on January 17, 2010 and the representative told me to furnish a copy of my termination letter from my company via e-mail. I requested them to also communicate with the insurance company since my credit card is covered by a Credit Shield, as per the representative’s advice.

Time passed and I still receive an SMS every month that I have to settle my credit card payment. When I called the representative on May 29, 2010 I found out that the Credit Shield didn’t cover all the balance due, and that I have to pay Dh2,202 to them to close my account, which I paid the same day.

On June 16, 2010, I went to the RAK Bank Musaffah branch in Abu Dhabi. They asked me to pay Dh26 more, I surrendered my credit card to them and they destroyed it and told me that I am free from my obligation with the bank. Knowing that made me feel relieved somehow as I’m still on a job hunt.

Given the time lapse of 18 months (from June 2010 to February 16, 2012), it was very surprising to receive an SMS again from RAK Bank on February 5, 2012 to settle my credit card bill, especially since I had lost my job again in November 2011. I called RAK Bank as soon as I read the message to clarify the issue and I was able to speak with a representative from the Collections Department, Al Ghusais Branch, Dubai.

The representative told me that I don’t have Credit Shield as I had rejected it when they promoted it to me. I can prove them wrong because the credit shield amount is reflected in my monthly bill. They also told me that they are going to return the undated security cheque, but when I visited the branch they didn’t want to give it to me and asked me to pay Dh8,000.

Please help me settle this issue as I have no other way of solving this issue. It is really disheartening to know and hear from them again after 18 months. I would like to thank Gulf News for their assistance.
From Mr Gassan Kaddoura
Sharjah

Mr Ian Hodges, Head of Personal Banking, RAK Bank, responds:
We would like to thank Gulf News for giving us an opportunity to justify our stance on the issues raised by Mr Gassan Kaddoura, RAK Bank customer, before you decide whether to proceed with publication.

The customer’s claim for Credit Shield Cover under involuntary loss of employment was approved in April 2010. The proceeds of the same were credited to his card account subject to the terms of the cover, which state that he should intimate the bank/insurance provider upon his re-employment.

In November 2011, the bank was informed by the insurance provider that the customer was re-employed since April 2010. This information was not communicated to the bank at the time of closure of the card in June 2010. In view of the same, part of the cover proceeds was reversed from the credit card on a pro rata basis.

Since receipt of your e-mail, we have contacted Mr Kaddoura to clarify his queries and are confident of bringing the matter to a close.