Complaints raised with banks

Unwelcome charges for unused card

In lieu of having a car loan with Ajman Bank, it issued me a free of charge credit card in 2009 as a privileged customer. I did not apply for it. I did not activate the card nor did I use the card. I received a renewed card with another scheme Roadmiles, which is valid up to October 2015. I received the bank statement during July 2013 asking for annual fee charges. All these years I was not charged any fees or even asked for annual fees. I lodged the complaint on August 3, 2013 and spoke to the customer care personnel on many occasions. Request of reversal of charges, which was made during August 2013 is heard and charges were reversed quite late hence automated charges kept on piling up to Dh2,350 for non-applied, un-activated, un-used credit card.

In the statement of September 2013, bank charged Monthly Membership Fee Dh250. No communication is made to me that monthly membership is applicable. I finally visited the branch and lodged two pages complaint on July 19, 2014 , but nothing was done.

They have also lodged my name as a defaulter with Central Bank spoiling my banking record and reputation. I have been holding credit cards with many banks and have not faced any issue so far and can be verified by Central Bank. I am quite confident about my banking record as I have been following all rules and regulations as a law abiding citizen of the UAE.

From Mr Nirav Bhagat

Dubai

The management of Ajman Bank responds: After investigating Mr Nirav Bhagat case, please find below the case conclusion as requested:

Customer been provided free credit card since he has an AF with Ajman Bank. Ajman Bank has revised all of credit card tariff of charges in July 2013 and we communicate the same in May 2013 to our client through SMS as well as the monthly physical statement, and since the customer did not approach the bank to cancel his card, the new charges had been implemented on his card and based on customer complain we reverse amount of Dh375 and Dh375 ( Monthly member fees and Late payment fees) however he didn’t cover the remaining fees to avoid any extra charges.

Currently the total outstanding is Dh2,350, however if he settle the amount of Dh1,500 we can obtain a special approval to waive the remaining amount of Dh850, which is late payment plus annual member fees.

Mr Bhagat responds: Thanks Gulf News for the intervention and your efforts. It was a free for life card hence I object to the reply that they reversed the card charges as per their means.

Once they give loan to client are they changing the percentage of loan by sending the SMS and putting the amount in statement? It is simply cheating the client by luring earlier by giving them free for life card and later asking for the charges by producing the argument that we informed by SMS and statement. I am happy that they agreed that the card was free, however I would stress it was not free it was “free for life” when it was issued. I do not wish to pay charges as it is not a legitimate demand by simply sending SMS and charging on statement they don’t hold the ground to charge me on free for life card. They should simply make me understand the free for life card is what.

Ajman Bank responds: I just want to add that we didn’t provide the customer a credit card “free for life” as we didn’t launch such product till today [October 16, 2014]!

Mr Bhagat responds: Totally disappointed by the claim bank is making, they would always maintain they are right., however while they were distributing these cards their sales team was deliberately mentioning it’s free for life card and you will not pay the fees at all. To prove this, my record can be seen that they didn’t charge me anything from 2009 to 2012 then why all of a sudden such charges appear. They didn’t have my consent to agree on the charges. By simply putting the charges on statement is not the solution. I do not agree to the charge and will not pay anything, neither I applied for it, neither I activated the card nor I have used the card.

Ajman Bank responds: Thank you for your email in regards to Mr Bhagat’s case. Kindly be informed that I had provided you with full feedback regarding mentioned case and nothing new to be added.

Currently the total outstanding is Dh2,350, however if he settles the amount of Dh1,500 we can obtain a special approval to waive the remaining amount of Dh850, which is late payment plus annual member fees.

(Process initiation: August 31. Response from organisation: October 12. Process completion: November 16.)

Cashback earned forfeited

I am using RAK Bank Platinum card. They offered me 3 per cent Cashback on local spends. My last bank statement is showing Cashback earned Dh1,200. When I requested to redeem that, they refused and told me your Dubai smart government payment is not eligible for Cashback. Can I make a complaint against this?

From Mr Basheer Komath

Dubai

Mr Ian Hodges, Head of Retail Banking, RAK Bank, responds: Thank you for giving us an opportunity to justify our stance on the issues raised by Mr Komath, before you decide whether to proceed with publication.

The concerns raised by Mr Komath have been reviewed and we understand that the customer has disputed the amount of Cashback earned on his credit card in his October 2014 statement. In August 2014, we clarified to Mr Komath that he can avail the bank’s Cashback facility for transactions done for personal usage only. It was also communicated to him that the transactions referred by him were not eligible for Cashback. Moreover in October 2014, he was requested to provide the Bank with documentary evidence confirming that the transactions were for his personal purposes, however this was not provided.

Kindly note that whilst usage of non-personal or commercial transactions on a personal card may be permitted by the Bank, any Cashback earned on such transactions is subject to review. Further the Bank also reserves the right to forfeit the Cashback so earned for any transaction, if found to be not qualifying.

Since receipt of your email, we have contacted Mr Komath and he has agreed to revert with proof of payments to take his request forward.

(Process initiation: November 16. Response from organisation: November 17.)

Editor’s note: Do you have similar issues that you would like to raise with us? You can write to us at readers@gulfnews.com.