Abu Dhabi court orders bank to repay customer Dh80,596 in unlawful loan charges
Bank must also pay 3% annual interest after expert report confirms excessive deductions
A commercial court in Abu Dhabi has ordered a bank to repay a customer Dh80,596 after an expert report confirmed the lender had collected unwarranted additional interest on a loan. The bank was also directed to pay 3 per cent annual delay interest from the date of the claim until full settlement.
Court documents show that the customer filed a civil lawsuit demanding the return of Dh80,596, along with legal interest and Dh20,000 in compensation. He argued that although he had been regularly repaying his loan, the bank had deducted amounts exceeding what was legally due, as demonstrated in a consultancy expert’s report submitted to the court.
The bank’s legal representative attended the hearings but offered no evidence contesting the claim, Emarat Al Youm reported.
In its judgment, the court said the expert had thoroughly reviewed the loan account and concluded that the claimant paid an excess of Dh80,596 beyond the actual outstanding balance. The court affirmed its confidence in the report, noting that it was issued by a qualified specialist and adhered to banking practices.
The court ruled that the bank’s failure to settle the amount constituted delay, entitling the claimant to compensatory delay interest. However, the court rejected the request for Dh20,000 in additional damages, stating that the customer had not proven any harm beyond the financial loss already addressed.
The court ordered the bank to pay Dh80,596 plus 3 per cent annual delay interest, in addition to legal costs and lawyers’ fees, while dismissing all other claims.
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