Mr Shambhu Sharan Tiwari, Dubai says: 

I borrowed Dh40,000 under an easy buy scheme of First Gulf Bank, to be paid in instalments. Due to being in India on vacation in March and April last year, I failed to pay two instalments. On returning to the UAE, I called the bank and offered to pay lapsed instalments, but the bank asked me to pay Dh15,000 thus pulling time till August so that they can again review the interest and force me to accept another instalment plan with increased interest - again on outstanding balance to be paid in three years inclusive of interest thereon. When I started to pay Dh1,700, again a charge of Dh360 per month was added.

At the time of easy pay plan I was assured that no other charges will be added to the outstanding amount. When I asked, different versions came from different customer care agents. I wrote to the bank but there was no reply, therefore I stopped payment till my instalment amount was clarified.

After a long conversation, there were threats that they would file a police case and harassment through calls.

In April, its customer care agent advised me to continue paying the instalment and despite having paid one instalment in April and I was willing to clear lapsed instalments by paying two to three instalments each month, the bank filed a police case. Out of Dh40,000 in which I have paid more than Dh25,000 and again I was to pay over Dh60,000 in 36 instalments, additionally the bank started the Dh360 charge again, which was not agreed upon.

The collection department have been threatening, blackmailing to accept those charges which were neither agreed nor accepted by me. The way they are behaving is very critical and contrary to commercial norms. I feel trapped and cheated. In case of any dispute will Central Bank save customers like me from exploitation by a bank using my security cheque to force me to pay an unacceptable amount in the name of various charges, not agreed upon?

Mr Abdulwahed Juma Farish, Head of Corporate affairs, First Gulf Bank responds:

I have requested the call centre to check their history and find any recorded communication between the bank and the client. Below is the response.

There are in all two calls received from this customer. One October 15 and the other on December 15.

October 15 call - Customer assumed that the interest component was already added to the Easy Buy booking amount and was arguing why the bank was charging interest every month. The agent spent quite some time with the customer and explained to him each and every aspect of ‘EB Total Outstanding' transaction. Customer agreed to pay Dh1,700 every month but stopped doing so from December, 2009.

December 15 call - Customer repeated his question again about interest charges every month. The agent was very patient and explained everything in detail. Customer was satisfied with the explanation given by the staff but didn't pay anything that month onwards.

The case is reported to the collection department for legal action and as per the banking sector standards, the case was filed with the amount of the guarantee cheque, which is normally the full amount. I am quite sure that we can get the recorded file if needed, which will be self explanatory.