I wish to seek Gulf News’ assistance in resolving a payment issue with RAKBANK.

I am RAKBANK Titanium credit card holder and have been regularly using this card and settling all dues in full every single month before the payment deadline date.

The charges for October 2014 were due to be settled, latest by November 6. I made an envelope deposit of cash, Dh4,800, on November 5, through the RAKBANK ATM in Ansar Mall, Al Nahda, Sharjah. Despite making the full payment ahead of the deadline, I was charged Dh175 as late payment fees and Dh218.02 as finance charges on November 12.

I raised a complaint with the bank regarding this and they rejected it, citing that all envelope deposits should be done at least three days before the deadline date, because they do not collect the envelopes from the ATMs on a daily basis.

What I fail to understand is that it is the bank’s prerogative to schedule collection from their ATMs and as a customer, I do not have a say in it. As a responsible customer, my commitment is to ensure that I make the payment to them before the stipulated deadline, which I have done every single month, including in this case. How can the bank penalise somebody for making a payment on time?

I had a similar issue in the month of May 2013, and the bank had then reversed the charges, but this time they refuse to do so. I sincerely hope Gulf News can take up this matter with RAKBANK and help find a resolution.

From Mr Nishanth Sarala Kumaran

Dubai

Mr Ian Hodges, Head of Retail Banking, RAKBANK, responds:

We write regarding the issues raised by Mr Kumaran, RAKBANK customer.

Mr Kumaran deposited the payment towards his Credit Card outstanding one day prior to his due date in November 2014, vide envelope deposit ATM, where a notice clearly states that payment credits to the Credit Card account are not credited on immediate basis. The payment was cleared after the due date and hence, charges were applied to his Card.

We note that exceptional reversals were provided to Mr Kumaran in April 2013 and June 2014 for the same reason. The bank had then advised Mr Kumaran about alternate payment channels and the turnaround time for crediting such payments.

The charges on the Card have been reversed once again as a service gesture after reiterating the information to him and advising him that this would be the final reversal.

We will be glad to provide any further clarification as required.

(Process initiation: January 13. Response from organisation: January 15. Process completion: February 3.)

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.