Bargaining 101: What can't be negotiated in the UAE

Some consumers, whose personal finances are in the toilet, may be able to negotiate with banks regarding their payment terms, but generally fees and charges for banking services and products are fixed.

Banks' tariff structures are always carefully determined, so a bank customer can't normally bargain for lower credit card fees, loan interest rates or higher savings interests.

"Our fees, charges and terms and conditions are carefully thought out and are the result of thorough and detailed risk analysis. As such, rates are not normally negotiable," says Richard Musty, managing director of Lloyds TSB in the Middle East.

But there are ways to save on rates without haggling. Musty says some products have the built-in flexibility to reflect the risk associated with a particular transaction.

"A customer, for example, who is applying for a car loan but is putting down a large deposit for the car will have a lower loan-to-value ratio, and so this will be reflected in a lower rate of interest. This is a feature of the product, however, and is not a negotiated term," Musty says.

Existing borrowers who are having financial difficulties are encouraged to get in touch with their respective banks.

"We will work with the client to re-assess their personal circumstances and guide them through the options available to them," Musty says.

To get lower interest on car loans and credit cards, the best you can do is compare prices at different banks. "[For car loans], you can shop around. Most motor traders have more than one bank they offer loans from. [For credit card interest rates], definitely shop around because banks want to attract business but will only offer standard terms at the time," says Steve Gregory, managing partner at Holborn Assets.

Strict no-no on...