Reader complaint
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  • Customer paid before due date, but got charged late payment fee 
  • Reader complains about late payment fees and interest charges on credit card
  • Bank have offered to refund my credit card with the full amount of late fees and interest charges

I am delighted to know that print media is doing good for the public in resolving grievances, which the banks generally don’t pay much heed too.

I have an issue with Mashreq bank wherein an amount of Dh5,154 was billed to me in July statement with a due date for August 11, 2019.

I did an online payment from my Abu Dhabi Commercial Bank (ADCB) account on August 8 (three days before the due date) towards my Mashreq credit card, which got debited immediately from my bank account but got credited to the credit card only on August 14 as banks were closed from August 10 for Eid holidays and resumed work on August 14.

I believe that I should not be charged this amount of Dh2,005.36 for no fault of mine...

- Mr Deepak Shaholia, Dubai

To my surprise I was charged a late fee of Dh241.50 and interest charges of Dh1,184.48 in my August statement. When I called their customer service to seek reversal since it is not my mistake and considering I had a good history with them for over eight plus years they instead asked me to contact the remitting bank for the delay as they received it only on August 14 whereas my account was debited on August 8.

Despite my repeated calls I was told they could not help me and I ended up paying the above charges to avoid additional billing.

Furthermore to my surprise I was charged additional interest of Dh579.38 in my September statement which they stated is the subsequent interest from my last billing date till the time I did not pay the amount in full although my August statement said total amount due and due date as well.

I believe that I should not be charged this amount of Dh2,005.36 (241.5 + 1,184.48 + 579.38) for no fault of mine and should be either reimbursed this amount in full or through other equivalent means.

Hoping for a positive resolution at the earliest.

From Mr Deepak Shaholia


The management of Mashreq responds: Thank you for sharing Mr Deepak Shaholia’s concern with us.

We have reviewed the concerns raised by Mr Shaholia regarding the late payment fees and interest charges on his credit card.

Our investigation reveals that as per the July 19 statement, the due date was on August 11. We had received the payment of Dh5,154 on August 14, which was after the due date. The fund transfer payment instruction received from the remitting bank was dated August 14 and the payment credited to the card accordingly.

As per credit card terms, he was charged the late payment fees and interest charges accordingly. We have considered the reversal of charges as a gesture of goodwill and basis confirmation provided by Mr Shaholia on attempt of making the payment on August 8 through online banking of remitting bank, the full charges levied has been reversed to Mr Shaholia’s credit card now. We have contacted Mr Shaholia and informed him of the same.

When the concern was highlighted to us earlier, our representative had addressed him and declined due to the above mentioned reason.

We take this opportunity to thank Gulf News once again for bringing a customer issue to our notice.

Mr Shaholia responds: I would like to confirm that the issue has been resolved and I am satisfied with the resolution. They have offered to refund my credit card with the full amount of late fees and interest charges, which shall be effected in my next statement on November 17.

Indeed Gulf News’ intervention helped me greatly as against Mashreq’s initial response to me, which advised me to pay in full the billed charges and contact the remitting bank for the delay. Thanks again for your support.

(Process initiation: November 7. Response from organisation: November 12. Reader confirmation: November 13.)