Exchange rate issue
I feel compelled to raise a complaint since my bank does not seem to think it is important. This is regarding Dubai Islamic Bank, Al Ittihad Mall, Dubai.
I was requested by my sister, who travelled to the UK for graduate studies, to process the payment of her tuition through a bank transfer. She handed me a banker’s draft, which I cashed and took personally to my bank so that they could deposit it in my account and thereafter transfer the money. The amount in question was Dh95,220, including transfer fees, as she was advised.
I went to the bank on September 15, 2014, and I filled in the telex transfer form. On September 17, they called and told me that the form was not complete. I returned to them and filled in another form. The amount debited to my account on September 18 was Dh98,022 — Dh2,802 more than we had been advised, as the equivalent in British Pounds.
I was shocked when I found out the next day that an extra Dh2,802 was deducted from my own hard-earned savings! I was told that the reason was due to the change in the rate of the pound to the dirham. Is this possible?
Why was I not informed before the transaction was made? I visited the bank several times and was not satisfied with the treatment I received, but this latest incident has really made me very upset. The lack of respect and concern for customers is not right.
From Mr Iman Othman Ali Koshen
Dubai
The management of Dubai Islamic Bank responds:
Dubai Islamic Bank (DIB) would like to confirm that our customer service team has been in touch with Ms Koshen to address her query. The team has contacted Ms Koshen and confirmed that the bank has converted the relevant currency based on the prevalent market rates at the time of the transfer.
We would like also to clarify that by signing the remittance application form, the customer accepted the Terms and Conditions of cross currency conversion at the time of processing the transaction, and authorised the bank to debit the full value due to the exchange rate and other applicable charges approved by the Central Bank of the UAE.
Furthermore, DIB has equipped every branch of the bank with monitors that are constantly updated with the daily market exchange rates to further help ensure that customers are aware of the latest rates. Yet, DIB’s branch staff are always available to help clarify any questions or respond to any requests.
As this transaction meets the authorisation given to Dubai Islamic Bank by the customer, we consider this case to be closed, but will continue to help Ms Koshen in any other way that we can.
(Process initiation: January 5. Response from organisation: January 18. Process completion: February 11.)
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