Overcharged
I was holding a RAK Bank credit card till 2008. During that period I used to regularly make full payments of the outstanding amount. Later, in July 2009 I received a call from a RAK Bank official who said that there is an outstanding payment balance of around Dh1,000, which represents the payment of Dh50, the late payment fee charged over the past few months at Dh100 and the interest for non-payment.
As a matter of fact, they stopped sending statements to me. It was surprising to note that they kept on charging late payment fee for the balance payment due to them, which according to them was less than Dh100.
In normal banking practice, I understand that if the payment is not made for three consecutive months they suspend the card. Once the card is suspended, how can they keep charging fees for non-payment of monthly dues?
Over and above, this matter should have been communicated to me either through their statement, telephone or registered post within a reasonable time. But in this case, RAK Bank did not communicate with me for several months. After conveying the fact to RAK Bank I was told to make a payment of a final settlement of Dh50 to close the matter, which I did on July 8, 2009 by paying through Al Ansari Exchange.
Now, suddenly, after one-and-a-half years I was shocked to receive a call from the Recovery Department of RAK Bank, Calicut, India, telling me there is an outstanding payment for over Dh2,000. I conveyed the above facts to them and in the meanwhile, contacted RAK Bank branch in Dubai for the clarification. I then received a call from RAK Bank threatening me that if the balance amount is not paid I will face dire consequences from recovery agents in India. I asked the name of the official who called me, but he was reluctant to disclose it.
I would like to ask RAK Bank — if the outstanding payment is less than Dh100 do they charge late payment fees? I believe that all communications with customers on credit card related matters is recorded. So why didn’t they check the recorded conversation I had with their official when prompting the payment of Dh50 for closing the issue?
Even if they charge this fee and no payment is made for three months don’t they suspend the credit card and follow up with the customer?
Even if the customer defaults for three months do they keep charging late payment fees every month indefinitely? In my case, after July 2009 neither I received a statement from RAK Bank nor have I received a telephone call.
From Mr Narayanan Kutty
Abu Dhabi

Mr Ian Hodges, Head of Personal Banking, RAK Bank, responds:
The concerns raised by the customer have been investigated and we would like to clarify that Finance Charges were applied on his credit card in March 2008 since full payment was not received by the due date. Further, the payments were not received on time, leading to the Late Payment Fee being charged. Please also note that Monthly Credit Card statements were mailed to the customer’s address as provided to the Bank and we have no records of any returned statements. We have been in touch with the customer and have resolved his concerns to his satisfaction.

Mr Kutty responds:
Thank you for your kind intervention on the subject matter. But I do not agree with RAK Bank’s [reply] as they are not answering any of the questions I have raised in my letter and making me the culprit. I did receive a call from RAK Bank and was told that they are going to write off the entire payment due to them, following the enquiry made by Gulf News and UAE Central Bank. I asked them to send me a No Liability letter, but was advised that since I have also complained to the UAE Central Bank I should be receiving a letter from Central Bank.
They should have elaborated how a balance of Dh2,600 plus has been accumulated against a meagre outstanding payment of Dh47. I did not receive a single statement for one-and-a-half years. Don’t they follow it up either by registered mail or telephone, when they have not received the payment from the customer after a couple of months? I hope everybody knows the number of calls all banks normally make to their customers for non-payment of credit cards. Without telling all the facts and figures they just want to close the matter.

Mr Hodges, RAK Bank, responds:
Please note that we have contacted Mr Kutty and arranged to resolve his concerns positively. Our response regarding his queries remains the same and we trust this brings the matter to a close.

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