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Flexi plan payments

Bank to clarify pre-cancellation plan interest rate

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I am a customer of FGB (now called First Abu Dhabi Bank, FAB) since December 2015. I took a credit card and a flexi plan under the same card via FGB sales agent in January 2016. On processing the loan, sales agent and its representative during the verification call stated, if I do pre-cancellation of my plans then I will only have to pay one per cent of total outstanding amount with total outstating Principal amount. I was happy with the offer. Since 2016 till date I took several plans under the same card and have been a loyal customer and never missed any payment.

In April 2017, I started to close my Equated Monthly Instalment (EMI) plans one by one. The biggest plan was of Dh37,800; for which I have already paid 18 months and 18 months are pending (Plan tenure was 36 months).

In order to close the above mentioned plan, I called customer care representative twice in May, and they mentioned to me that closing balance for that particular EMI flexi plan is approximately Dh21,000. I was fine as they told me the outstanding plus one per cent of the total outstanding will be charged.

Then I called them in June, and the customer service representative said that after paying of monthly EMI for June, my final settlement payment was approximately Dh19,089. I said OK I will do the closure in August.

Now, when I called the bank after all these months, working hard saving money to close the plan, the bank is asking me to pay approximately Dh25,700.

They are asking me now to pay interest, that is, 18 months EMI left, I need to pay all (per month EMI is Dh1,424.22).I was shocked and shattered.

I asked him how come? He said, your booking for plan was done in January 2016, that is why my amount to be paid is Dh25,700; if booking is done in February, then the amount to be paid is approximately Dh19,089.

I raised a complaint afterwards, as I have been planning for this from the past three months and four customer service representatives have told me that I do not need to pay interest if I close my flexi plans early.

I even spoke to my sales agent who gave me the card, he too agreed that I am not liable to pay interest. I only need to pay the principal outstanding and one per cent closing charges of principal.

Previously also in January 2017, they charged me credit card fees of Dh500 but as sales agent sold card to me saying that card is free for life then I raised a complaint and they reversed the fees. But this time they are just crossing limit, please help me. They are just turning their back now.

I would appreciate your kind help in this matter, as I raised a complaint with FGB on August 6, which they closed on August 7 without my satisfaction and consent; and then later I asked to reopen but they opened new on August 7 again under the same issue and till today no calls, no emails, no action have been taken by FGB.

From Ms Shilpi Sonia Singh

Dubai

The management of FAB responds: FAB supports the growth ambitions of its stakeholders and goes beyond financial products and services, and as such, we are grateful for all customer feedback as we strive to consistently deliver the highest standards of service. The bank has been in contact with Ms. Singh, and the matter has been resolved.

Ms Singh responds: Regarding my issue with FGB for closure of flexi plan, which I took in January 2016, please note the bank representative had worked on the issue and had given me approval to pay only one per cent of principal amount and principal outstanding. Today I am going to finish off the plan.

(Process initiation: August 13. Response from organisation: September 5. Reader confirmation: September 18.)

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.

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