I have been an account holder with Mashreq Bank since 1996. Mashreq confirmed that after cancellation of credit card, no one can take money from it. I cancelled my credit card in February 2016. But in the month of May 2016, a merchant debited Dh10,000 from it. When I called the bank regarding this, initially, they told me it was impossible to deduct money once I cancelled the card. They told me it was nothing to worry about, and that I would get my money back. They asked me to send a complaint regarding this issue. First, they refunded this amount as ‘temporary reversal’. Then, in December 2016, they took back this amount from the cancelled credit card.

During the cancellation period I had not authorised any transaction with any merchant. But I had given my card details to an auction in the month of January 2016, and they had released the amount. There was no hold amount on the card during cancellation. The Bank had told me it would not cancel a card if there was any pending on it. I now feel insecure dealing with Mashreq’s credit cards.

From Mr Ameer Rahman

Ajman

The management of Mashreq responds:

We thank you for sharing Mr Rahman’s concern with us for our feedback. We do regret the inconvenience faced by Mr Rahman.

Mr Rahman had approached us earlier with the same issue and we had explained to him that although he has cancelled his credit card, all the unbilled transactions prior to cancellation on the card are payable by the customer and are his responsibility.

Mr Rahman had used his card to register and bid in an automobile auction.

The transaction was incurred on January 31, 2016 and the merchant claimed the amount of Dh10,000 in May 2016, after its attempts with the customer.

The first time Mr Rahman disputed the amount, we provided him a temporary cover and investigated the matter.

This was declined unfortunately, as it wasn’t a fraudulent transaction, hence the temporary cover was revoked.

A bid in an auction is considered a pledge to buy and hence, the auction authorities have the right to use the card details provided by the customer to complete the purchase.

In this case, Mr Rahman closed his card post the auction, where he agreed to bid for a vehicle.

As per agency guidelines and the terms and conditions of the card, the merchant holds the right to claim the amount.

We have communicated the same to the customer, as well. In case the customer has not received the vehicle in return, he is requested to kindly approach the auction authorities.

(Process initiation: February 9, 2017. Response from the organisation: February 12, 2017.)

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