Man shattered after bank empties account

Defaulting engineer lodges complaint after bank seizes funds kept aside for daughter’s treatment

Image Credit: Getty Images/iStockphoto
Money trail: Omar Ahmad took a Dh250,000 bank loan a few years back

Abu Dhabi A petroleum engineer is in shock after his bank drained his account to the last penny, taking not just his entire month’s salary but also the Dh72,000 he had borrowed from his company to fund his ill daughter’s treatment.

Omar Ahmad’s fault was that he had defaulted six times on a Dh5,000 monthly instalment to clear a personal bank loan.

The 31-year-old Yemeni, took a Dh250,000 bank loan a few years back. He was paying his Dh5,000 on time until last October when his one-year-old daughter suddenty fell ill and he ended up spending a large amount of money on her treatment.

The child was admitted to Mafraq Hospital and was on injections and painkillers for almost three months. 
“I was shelling out Dh13,000 a week on her treatment by taking advance salary from my company,” said Ahmad, who was forced to skip the loan repayments from October-April. From 250,000, only Dh90,000 remain of his loan and he still has several months to pay back the outstanding amount.

Sure enough, he was taken back when he found that the bank has taken away Dh72,000 he borrowed loan from his company along with his Dh9,000 salary.

“The bank is only entitled to take the pending dues plus the late payment fee. Recently, I made some payments for the defaulting months. Now I owe them Dh23,800. The rest is mine,” he said.

But the argument has not cut any ice with the bank. They have told Ahmad they will take his next month’s salary too to clear the remainder of the loan.

“I need money for my daughter’s treatment. I have to apply for her medical insurance, Emirates Identity. The bank has no right to take away the money that doesn’t belong to them,” said Ahmad, who has lodged a complaint with the Central Bank.

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Your comments

  • Louie Tedesco

    Jul 25, 2013 12:58

    Do NOT take out a loan for Dh 250,000 if your salary is only 9000 dirhams. How can one live with a family from the 4000 dirhams remaining after the 5000 dirham installment is paid? This was trouble brewing from the start?


    Jul 25, 2013 12:53

    Bank made all terms & conditions only favor to bank. Even if request for NOC after paying all our loans. We have to pay 200aed along with they will mention, this NOC valid for only 7days. After 6 month they will send simple SMS that still your account is going minus. So again we have to prove with NOC documents, if you lose NOC again we will be in trouble. I heard such types of news several time, even it was happened in my life.


    Jul 25, 2013 12:46

    i did hear stories from friends about banks doing such incidents. i just wounder if that procedure is within the central bank regulation i don't know much about financial procedures, so i don't know if the central bank have power over this or is it internal thing in the bank. if yes it should be according to central bank regulations, then how can banks do as they please with people's personal accounts. if not, then what is the limitation to bank's access to personal accounts. XPRESS, pls. make an article about this and investigate it, stating what's our rights as customers and what's the banks rights, as well as the whole customer privacy and all other issues related to us customers with the banks thanks

  • farah

    Jul 25, 2013 12:30

    Bank should have collected only the defaulted installments. It is wrong to collect the entire amount covering the loan immediately when the term for repayment is not yet over. In customer's part, he should have approached and renegotiated his payment terms when he has started having difficulties. As for the bank, when the customer had started defaulting with his regular payments, they could have at least called or ask him for a meeting - don't they have customer service staff to do those kinds of things? Terms and agreements are signed between bank and the customers, but there are times they must be bent or be flexible for humanitarian reasons. Banks are there because of the customers. Goodwill is the best PR tool, not the commercials or promos.

  • Nestor

    Jul 25, 2013 12:19

    Draconian behavior which is rampant in most of UAE banks without regards to the individual involved.

  • Abdul Bari Mohammed

    Jul 25, 2013 11:48

    The rule has to be that Bank cannot withdraw money without the knowledge of the account holder, or without warrant from the court to withdraw. The bank just has to make a statement of the fines getting accumulated to him. If the bank wants to clear the loan early, it should be with permission of the account holder and/or solved through court. Any agreement being made by the bank that bank can withdraw anytime from the account holder without any permission from the holder or the court, that clause should be considered illegal.

  • arun

    Jul 25, 2013 11:21

    pathetic the whole world is greedy ,people only give money to get bigger returns, there is no humanitarian concept here or CSR here for any banks, sorry and sad to say that, my sympathies to that poor man struggling to save his child

  • anonymous

    Jul 25, 2013 10:00

    Please tell us which bank, this info complements the article and without it it sounds like a fairy tale. we need to know which bank.

  • Anton

    Jul 25, 2013 9:39

    Ever since-- even from ancient time, banks are always greedy and they take advantage of each and every individual so they can devour, steal & kill (theoritically, its evil thing) and the saddest thing is-- they manage to make it look legal. People have no other choice but they must carefully study and analyze their terms & conditions upon entering any contracts to avoid such evil thing. May we find lesson to learn here.

  • Dolly

    Jul 25, 2013 9:26

    This does not surprise me as I have heard similar stories from my many colleagues and friends. As per the bank there's no humanitarian consideration. What will happen if someone's whole month salary is cut off? they only care their money! This happens only in this part of the world.

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Latest Comment

Do NOT take out a loan for Dh 250,000 if your salary is only 9000 dirhams. How can one live with a family from the 4000 dirhams remaining after the 5000 dirham installment is paid? This was trouble brewing from the start?

Louie Tedesco

25 July 2013 13:05 jump to comments