dubai A local bank has asked an Indian businessman to pay Dh3,000 for closing a corporate account the man claims he never authorised them to open in the first place.
Kariyil Satheesh Kumar said he considered opening a corporate account two years back but decided against it when he learnt that the bank had rescinded its zero balance account policy.
“A bank represenative approached me around March 2010 with a proposal to open a zero balance account. So I signed the related documents and gave him a cheque for Dh10,000 which was mandatory to open the account,” recalled Kumar.
According to him, the same day the representative informed him that the bank policy had changed and that the account could no longer be opened as a zero balance account.
“When I told him that I was no longer interested, the representative said my decision could not be reverted as he had already submitted my papers to the bank for processing. I said if this is the case, I will not honour my cheque. I withdrew all money from the account from which I gave the cheque Although I had to pay a fine of Dh250 for dishonouring the cheque I didn’t mind.
Kumar said he thought that was the end of it. But in April 2011 he received an email from the bank saying his account was dormant. The bank letter read: “Our periodic review of customer accounts indicates that there have been no transactions in your account for the past twelve months. Accordingly, your account has been classified as ‘dormant’ and all transactions over the account are blocked. Your account has a NIL balance and the bank will continue to levy various account maintenance charges, as applicable.”
On August 16, Kumar received the first bank statement, dated July 31, 2011, a copy of which is with XPRESS. Since then he has been receiving two statements, for a current account and a cash account, every month.
Kumar said he wrote to the bank twice demanding that the account be closed and also made many calls to them. “During one such call, I was informed that I will have to pay around Dh3,000 to close the account. Later they said they reduced the amount to Dh1,500. However, I have decided that I will not pay one fils as I did not ask the account to be opened in the first place.”
“Why should I pay to cancel an account I never authorised? We never got a chequebook on this account. “There is no way I can miss any posts from the bank as all mails come to me directly. I would like the bank to immediately close this account without any charge to me as I have done my bit to communicate clearly to the bank.”
After XPRESS called the bank to seek an explanation, Kumar got a call saying his accounts will be closed with no additional charges.