Man asked to pay for closing account he never authorised

Bank agrees to closure after XPRESS called the bank

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i am not paying anything: Kariyil Satheesh Kumar

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said he considered opening a corporate account two years back but decided against it when he learnt that the bank had rescinded its zero balance account policy.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.

Your comments

  • hani

    Nov 8, 2012 12:12

    i jest want to know, if the problem have been resolved the why you have writen this all??

  • layal

    Nov 8, 2012 12:03

    can you please give me the address , or a contact number of Mr. Ishtiaq . thank & Regards

  • saba

    Nov 8, 2012 10:25

    sir, this policy of bank is can a ordinary man survive if the bank will play a game like this...most of the uneducated persons don't know how to deal this type of situations and as a result banks will trap them. Good job sir ..hats off

  • Rajnish Charles

    Nov 8, 2012 10:11

    First of all let me congratulate XPRESS for taking up the case of Kumar. A similar incidence happened recently with me. I came to Dubai in 1997 when i opened a personal account with ADCB, after 2years I left the company and moved to sharjah and joined another company. I did notremember closing the accounts and had no money to maintain the same. I did not get any calls from the bank or any email, though I use the same mobile phone since last 15years. I recd a call from the collection deptsaying since the account was not closed properly i have outstanding charges of almost Dh15,000, which I flatly refused to pay, but the person calling from the collection agency of the bank threatened legal action to which I did not respond. Why does the ADCB bank not inform the customer earlier and wait for 15years to get back? Why do they not close the account if the minimum balance is not maintained as per their requirement which changes after some months of opening the account. Initially they will not inform but after the rule changes and the customer is not informed if he has abandoned the account due to notmaintaining the balance. Is it not the bank cheating the customer by asking to pay such large amt after 15years. Can Xpress take up the case Rajnish Charles

  • Raza

    Nov 8, 2012 7:32

    This is really a good job from XPRESS, I am new over here but I have heard so many cases about these sales people are playing with their clients. I was saved from such situation, when I opened the account here, a salesperson called me by saying that I am eligible to get thecredit card from the bank and told me about the two cards. One of them was free and the other one was charged, I told him that at this position I would like a free one. When he came, he adjusted the two forms in such a way that it seemed like I have to sign on two places on the same formfor one credit card, but when I pulled one paper just to check the conditions, the other form which was an application with yearly charge dropped on the floor. Then I tore that application infront of him. Everyone should take good care when they are dealing with the bank sales agents.

Latest Comment

i jest want to know, if the problem have been resolved the why you have writen this all??


8 November 2012 13:40jump to comments