Seeking help
I would like to bring my plight to Gulf News’ attention in the hope that the newspaper can assist me in resolving an issue with my bank.
I am an single Emirati mother of two children and took a loan from Abu Dhabi Islamic Bank (ADIB) a few years ago to pay for a property, which was a very bad investment. The loan I took was for Dh1.4 million and my monthly instalments were Dh16,000.
At the time of taking the loan, I had two incomes as well as my husband’s support. I am now a single mother with no support from my ex and have lost my supplementary income as well. Due to this, I was unable to keep up with the payments.
I struggled for a very long time and managed to incur a lot of debts when trying to stay afloat. When I could not manage anymore, I approached ADIB last year for a reduction in my instalments. After being given the run around for more than six months, I finally got a reduction of Dh2,000 but only once I took the matter to Central Bank. I informed ADIB at the time that reducing Dh2,000 was not going to help me much as I had accumulated so much debt and I needed to clear it all, but was informed that they could not do any more than that.
Recently, I managed to find a bank that was able to buy out all my liabilities and reduce my monthly instalments by 40 per cent. This will help immensely as I will finally be able to stop borrowing money to make ends meet.
To buy out my loan, the bank requires a liability letter from ADIB stating the amount I owe. The loan I took from ADIB was Dh1.4 million, which I have already paid for, over several years.
ADIB however, issued a liability letter stating that I had to pay them Dh2.3 million. When I asked them what the extra Dh900,000 was for, they informed me that it was the expected profit they would have earned from me in the coming 14 years, which was the tenure of my loan.
I informed them that I took a loan of Dh1.4 million and I am willing to pay for what I took, including the 1 per cent early settlement fees, which is what all the banks charge. They, in turn, informed me that this is how it works with Islamic banking.
They also informed me that if I pay off the loan from my own funds, they will give me a liability letter of Dh1.4 million but if another bank is buying the loan, they will include future profits to be made, which amounts to Dh2.3 million. This is clearly a tactic to force clients to stay with their bank despite their service being unprofessional and dishonest. I am shocked at the treatment I have received from ADIB.
I remember specifically asking the question when I took the loan, about paying off early and I was never informed about adding future profit rates. The only thing I was told by the very rude personnel (who thought my shock was so amusing that he actually laughed at me) is: “You signed the contract, didn’t you?”
I also informed him that I never received any paperwork from ADIB and despite having asked for it several times, I was directed from phone banking to branch to sales and never received any contract from them. I’m sure if they looked in their files they would find my original contract, because I never received it.
I am not asking ADIB to do anything other than let me pay for what I borrowed. It seems impossible to speak to anybody who is willing to even listen, let alone help someone in my position, which is why I have come to Gulf News in the hope that the newspaper would be able to assist.
From Ms Thuwayba Ahmad
Sharjah
The management of ADIB responds:
We have looked at Ms Thuwayba’s case, and in 2013, ADIB worked with the customer to offer her free debt restructuring assistance, which reduced her monthly payments and enabled her to better manage her finances. As per her new request, a liability certificate will be drafted. The customer has already been contacted and notified of the same and is satisfied with the result.
Ms Ahmad responds:
A very nice gentleman contacted me and was ready to listen to my complaint and apologised for the inconvenience I was caused. He was very efficient and informed me that the bank had considered my request and the letter would be ready for me the next day. He called me again to confirm that the letter was ready and followed up with me after I received it.
I have to say the service I received from the staff member is what anybody expects from their bank, but unfortunately, it was not the case. The assistance they offered me last year did not resolve my problem and I had mentioned that to them on the spot but further assistance was declined. That is what brought me to the point I am in today but at the end of it, I am grateful that the issue was resolved. I do owe that to Gulf News. Thank you very much for being the kind of organisation that actually cares about people and gives us the opportunity to come to the newspaper if we need to. I cannot express my gratitude enough because what Gulf News did, saved my sanity and my children’s happiness.
(Process initiation: July 1. Response from organisation: July 7. Reader confirmation: July 10.)
Credit card renewal fee
I am banking with Standard Chartered for the past two years. I have my salary account, personal loan and credit card with this bank. I am using a Titanium credit card, which was paid for two years now at the beginning of the third year they have charged me with Dh500 as annual fee. When I called in they said this card is no longer free. I told them to cancel it, but they are now refusing to refund the annual fee. I have seen Gulf News resolving many issues like this, kindly help me solve the same.
From Mr Daniel Nargunam Pandiarajan
Dubai
The management of Standard Chartered responds: Upon receiving the feedback, the Bank started its investigation process. When retrieving the customer credit card application, it was found that credit card was free of charge for the first two years only and thereafter, customer is subject to Dh500 fees on annual basis – as stated in the contract.
(Process initiation: June 20. Response from organisation: June 25.)
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
