Multiple issues, one bank

Reader was charged a penalty for late payment and loan came through late

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Gulf News

Multiple issues, one bank

I have been an account holder with Mashreq Bank for the past 17 years. In 2000, I availed a personal loan of Dh40,000 and paid it back in three years. I had also taken a credit card in 2014 with a Smart Saver option and had availed the quick cash offer in 2015, which is also being repaid regularly on a monthly basis.

On December 19, 2015, I had applied for quick cash of Dh21,000 or so, to pay for my rent cheque of Dh17,000 due on December 26, but despite the approval coming in on the same day, the amount was disbursed to my account on December 28. The duration that Mashreq usually commits to, is three to four working days.

My rent cheque almost bounced, but after my plea at the landlord’s office, it was withheld on December 25. However, I was charged a penalty of Dh500 by the real estate company for late rent payment.

On enquiry, Mashreq reported a system failure, but no compensation was considered, even after they accepted the breach on their part, and despite my sincere request.

In another instance, on November 11, I had to pay Dh5,753.50 on my outstanding amount on the credit card. As I have applied standard instructions for debit, the minimum amount of Dh2,369.52 was taken, instead of the whole amount, from my current account. Consequently, I deposited the difference late in the evening to my current account, expecting the bank’s auto-debit system to take it as full payment. However, I saw that a penalty interest was charged — Dh214.03 for late payment.

On contacting them through phone banking, they told me that the auto-debit system takes the money only once in the morning and I would have to pay up the penalty, despite explaining to them my ignorance of such rules.

I bank with three other banks and in such instances, every one of them adjusts or reverses charges amicably. However, Mashreq raised the requisition, but the supervisor refused to oblige my request, despite me explaining to them that I have been paying their quick cash amount regularly.

If I had the intention of waiving the payment, I would not have credited money to my account on the same day. I could have credited directly into the credit card and absolved myself of being considered a defaulter to invite penalty charges.

Can Gulf News kindly urge the bank authorities to be reasonable and fair to me, as I have been a client for the past 17 years? I request them to reverse the undue finance charges.

From Mr Orlando Figueredo

Dubai

The management of Mashreq responds:

Thank you for raising Mr Figueredo’s concern to us. We have reviewed his concern in detail and as per our investigation, Mr Figueredo had deposited the credit card payment to his account on the due date later in the evening. This was after the cut off time for payment processing. Hence, the system had recovered the minimum due, which caused purchase interest to be levied on the card.

We have explained the system functioning to Mr Figueredo and have also arranged to reverse the purchase interest levied on his November statement.

Pertaining to the cheque return issue that Mr Figueredo has raised, we have discussed this with him and have settled it amicably. Mr Figueredo has confirmed that he is satisfied with the resolution provided to him.

We would like to thank Gulf News in serving our community and for bringing customer’s issues to our notice.

(Process initiation: December 13, 2016. Response from organisation: December 15, 2016. Process completion: December 25, 2016.)

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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