Reader’s raise issues with their banks

Over credit limit

Recently I incurred a fee of Dh179 from Emirates NBD for accidently exceeding the credit limit on a card. I was surprised to see that the limit, which was set by the bank, could be exceeded. Upon calling the bank, I was advised that they have a buffer to facilitate the customer. I had never requested for this facility.

When I asked the bank to freeze my limit and decline any future transactions that exceed the limit, the request was not processed on the basis that it’s a bank policy.

I feel this exposes the customer to excess amounts in situations of unauthorised usage. It also subjects the customer to such additional fees that are levied by the bank.

The whole process lacks transparency and subjects customers to additional fees which are extorted by the bank for a service that is not requested.

From Mr Girish Padharia

Dubai

The management of Emirates NBD responds:

Emirates NBD is the leading provider of credit card products and services in the UAE providing best-in-class service and offerings to its customers. The bank is actively engaged in providing its customers with information that permits customers to practice responsible credit practices.

Emirates NBD recognises that at times, customers face emergency situations where it is important to complete transactions that may exceed the credit limit of their card by a small variance. The bank may therefore from time-to-time permit customers with good credit behaviour to complete transactions that exceed the credit limit by a limited amount only. The charges for exceeding the credit limit are disclosed to all customers at the time of issuance of the card as well as being available on the bank website at all times.

All Emirates NBD credit card customers receive transaction alerts on their registered mobile numbers that provide information pertaining to The Transaction Amount, Merchant Name, Card Used, and Available Credit Limit after completing the transaction. Customers are encouraged to keep their mobile numbers updated with the bank so that they may receive these transaction alert SMS. The SMS enables the customer to monitor the utilisation of their credit card with every transaction. This provides the customer with the information required for responsible credit practices.

In the case of Mr Girish Padharia, we have informed him of his available limit via transaction alert SMS on January 5. On January 7 he performed a transaction that exceeded the available limit by a small amount. This was informed to Mr Padharia via SMS. However, he chose to perform another transaction on January 11, which further exceeded the limit assigned on his credit card. Therefore the charges for exceeding the credit limit applied on January 12 are valid.

We would like to thank you for bringing the customer’s issue to our attention.

Mr Padharia responds:

I wanted to emphasise the fact that the credit limit set by the bank can be breached, which is a main concern and will they take responsibility without debiting my account for any such transactions in the future, if they are not willing to set the credit as per the advised limit? A customer is surely made liable to any amount that racks up on the card and would have to settle them well before any disputes. This mean that I, as a customer, end up facing the music for services that were never requested. Can this be raised with Emirates NBD?

Emirates NBD responds:

After conducting additional inquiries into matters relating to Mr Padharia’s concerns, we wish to state that in order to assist our customers with good credit behaviour in emergency situations, an enhancement has been made in the authorisation tolerance limit for selective cardholders while completing transactions that are slightly over the limit. In the case of Mr Padharia, we wish to reiterate that complete information regarding the product and the available credit limit in his account were provided to Mr Padharia prior to and at the time that he exceeded his credit limit. We would also like to clarify that the limit enhancement is a practice across the local market, and the same is covered in the Credit Card Terms & Conditions available in our official website. Once again, thank you for your relentless efforts in providing us with the opportunity to further assist our customers.

Unwelcome charges

I am regularly paying my loan (both auto and personal loan) with Mashreq bank every month. But Mashreq’s legal department is calling me every month and asking me to pay the loan, without checking my account status and my payment through branch. They have imposed late payment fees for all my loan accounts. After my deposits, they have debited my account for loans, but again called me to pay my loan. This has me frustrated.

I went to the bank’s collection department and explained the activity happening in my account. They told me that they will check and update, but whenever I call the representative with whom I raised the complaint, he simply gives me the same response - that they are checking. There has been no solution for the past month.

I am worried. Should I pay my loan or not because of this improper handling of my loan account in Mashreq?

From Mr Mohammad Yahya

Dubai

The management of Mashreq responds:

Thank you for sharing Mr Yahya’s letter with us. Mr Yahya has two liabilities with us, Personal Loan and Auto Loan. Our investigation revealed that as per bank’s policy, Mr Yahya’s account was on hold, since he did not provide his salary transfer letter with his current company. We have communicated with Mr Yahya and are pleased to share that we will waive all late payment fee charges on both loans and have requested him to provide the letter, so going forward, his account is functional. He will be in touch with us if he requires further assistance. Thank you for seeking clarification.

Credit shield cover

I have submitted my credit shield insurance claim with the First Gulf Bank on January 13, 2013 but to date, there is no update from the bank. As per the procedure, they have to intimate the claimant within 21 days after submission of the claim. Upon follow-up from my side, they informed me via telephone that my claim is still pending; they did not mention the reason. Instead, they put pressure on me to pay the minimum charges on the card, until the claim is approved.

I told them that my claim was submitted to cover for the last outstanding balance on the card, and the insurance company, sooner or later, will be obliged to pay the amount. Thus, why collect the amount from the customer? If the insurance company pays the outstanding balance later, will the bank reimburse me for it? The bank representatives do not have any precise answer.

On March 5, 2013, a bank representative sent me a mail warning me that if I don’t pay, he will lodge a legal case against me by presenting the cheque, which I have signed with the bank.

Earlier, I raised the above questions with their agents who called up for payment, stating that I have already submitted the insurance claim and for them to follow up with the concerned department. But they are troubling me and putting pressure on me to pay. I will be much obliged if Gulf News raises this issue with the bank authorities and settles the matter.

From Mr Shabiul Hassan Abidi

Sharjah

The management of First Gulf Bank responds:

The customer has been contacted and informed that the concerned department (CCSU) is following up about his claim with the insurance company. We advised the customer to pay at least the minimum amount due every month until the insurance claim is approved. Also, we informed the customer that we had sent the communication to the collections department not to call him or to send him a letter regarding his card payments. Our customer is fine with the solutions found and he will pay off the card accordingly.

Editor’s Note: If you have a similar unresolved consumer complaint, please raise it with us at readers@gulfnews. com and we might be able to help you seek a resolution.