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Cheque clearance

I took easy cash from my credit card with Mashreq bank. My statement date is 10th of each month. For 10th October statement, payment due date was November 4. But since my Emirates NBD chequebook got finished, I had to pay by Dubai Bank (now Emirates Islamic Bank) cheque. I first checked with Emirates Islamic Bank (EIB) if cheque printed in Dubai Bank name be accepted. EIB said they will accept cheque even if it is in the name of Dubai Bank, but check with Mashreq for clearance days since my chequebook was old, without security feature. Since this was a credit card payment and should be done before due date, I called Mashreq representative. I asked her how many days it will take for the cheque clearance specifying that the cheque I am going to use is from Dubai Bank and without security code. I was told it will take only two days to clear.

Therefore I deposited my cheque on October 28. Since the cheque was not cleared I called on October 31 and was told it was wrong information and the cheque will take 10 working days for clearance. I did cash payment on November 3 to avoid fines.

On November 4, I called Mashreq and explained the entire scenario. He told me he would check call record and raise a complaint to the respective department head. On November 5 I called him but he had no answer. On November 6, he called and confirmed my conversation with Mashreq representative, but still they cannot help. I look forward for your assistance in solving my problem.

From Mr Parkar Abdul Razzaq


The management of Mashreq responds:

Thank you for Sharing Mr Abdul Razzaq’s letter with us. We have communicated with Mr Abdul Razzaq and would like to confirm that we have addressed his query. The cheque presented by the customer has been adjusted against his card statement for the month of November. Initially, Mr Abdul Razzaq presented the cheque of another bank to clear his card statement and contacted Mashreq to understand how many days it would take for clearing. Mashreq is the Representing Bank and customer should have contacted the other bank as it is the Beneficiary Bank. We have spoken to the customer and this was resolved. Thank you for seeking clarification.

Mr Abdul Razzaq responds:

I thank Gulf News for their support in handling and resolving my issue. It was only after raising the issue with Gulf News that my problem had been solved. I received a call from Mashreq representative confirming to me that my cheque will now be adjusted against my November statement payment and for this he had already sent a confirmation email as well.

Calculation of interest

This is to bring to your attention my personal grievance against Mashreq bank, which remains unresolved after repeated attempts with the bank. The matter pertains to overcharging of interest on credit card outstanding. The facts are as follows:

Credit Card: Elite Visa issued by Mashreq

Statement Date: September 14, 2013

New balance: Dh20,237.57

Payment due date: October 9, 2013

Minimum payment due: Dh1,012

Partial payment made on October 6, 2013: Dh15,000

Balance outstanding: Dh5,237.57 (Dh20,237.57 minus Dh15,000)

Purchase interest charged on October 14, 2013: Dh1,389.54

As you would note from the above, on an outstanding amount of Dh5,237.57, interest of Dh1,389.54 has been charged for a month. On taking up the matter with the bank, I was told that notwithstanding the partial payment of Dh15,000 within the due date, as per ‘bank’s policy’ interest is charged on the entire amount as per statement, that is, on Dh20,237.57, and not on the current outstanding amount, that is, Dh5,237.57. This is a sharp practice and clearly unconscionable. I seek your assistance in taking it up this case with Mashreq. Thanks.

From Mr Babu Mathew


The management of Mashreq responds:

Thank you for sharing Mr Mathew’s letter with us. We have communicated with Mr Mathew on his concern and explained how interest is calculated on credit card. Thank you for seeking clarification.

Mr Mathew responds:

Thank you for your mail. An official of the bank called me and said as per bank’s policy interest has been charged on the entire amount of the statement and not on the outstanding amount alone. He said the timely part payment of Dh15,000 is disregarded for calculation of interest. The net result is that I have been charged interest of Dh1,389.54 on an outstanding amount of Dh5,237.57 for one billing cycle. This is highhandedness and sharp practice on the part of the bank.

The issue is very simple. How could the bank charge interest on money already paid to the bank within the due date. To my query the bank official simply answered this is as per bank’s policy and other banks in the UAE also follow similar practice. Needless to say the bank’s explanation remains unsatisfactory and is unacceptable.

The management of Mashreq responds:

Thank you for sharing Mr Mathew’s letter with us. We have communicated with Mr Mathew on his concern and explained how interest is calculated on credit card. Thank you for seeking clarification.

Editor’s note: If you have similar consumer complaints and wish to raise them with the newspaper, contact us by email at readers@gulfnews.com