In the third quarter of 2019, I signed up for a credit card with a local bank. At the time, the bank’s agent assured me that the card did not have an annual fee.
However, after I received the card and read the attached information, I discovered that the card charged an annual fee of Dh200. Therefore, I did not activate the card and never used it.
I have recently been receiving emailed monthly statements from the bank and when I called them, was surprised to discover that I owed more than Dh2,000 ($544.58) on the card.
The bank’s agent said he had applied to cancel the card on my behalf, but this would take 45 days and somebody from the payments department would call me.
However, I have not heard from them yet. Obviously, the longer this drags on, the penalties will increase and the amount owed will grow quickly.
Furthermore, I have also been flagged as a defaulter on my Al Etihad Credit Bureau credit report. I discovered this when I applied for a loan, which was consequently rejected.
Can you advise me on what I should do and what my legal rights are regarding this issue? LB, Dubai
Debt panellist 1: Sameh Awadallah, acting global head of retail banking at Abu Dhabi Islamic Bank
Your decision not to activate your credit card and use it is not the solution as it can lead to you paying fees without reaping any of your cardholder benefits.
Your account is automatically opened when your application is approved. This means that even if you do not activate the credit card, you will still have to pay the annual fee associated with it.
Given your situation, I would recommend setting up an in-person meeting with a senior officer at the bank and explain your situation to them. As it is not a huge amount and if you are an existing customer of the bank, you can ask them to waive the annual fees that have accumulated so far.
You could then ask to switch to another card from the same issuer that does not charge an annual fee. This may be less of a hassle for you than cancelling your card and applying for a new one with a different issuer.
Once the settlement is completed, ask the bank to remove the default status and amend the original credit information provided to the AECB.
The bank can correct and update their records instantly through the data correction tool provided by AECB.
There is a link on AECB’s website that allows you to contact your bank (information provider). If you can convince the bank to do this, make sure the agreement is in writing.
I also suggest obtaining both the clearance letter and the agreement in writing, on the bank's letterhead, to amend the write-off status.
Debt panellist 2: Jaya Ratnani, managing partner at Freed Financial Services
Quite often, people have small, unknown defaults and payments piling up on their credit cards, which go unnoticed over a period of time. This amount grows due to penalties and interest and can have an adverse impact on an AECB credit report.
It is frustrating when you have been rejected for a loan with a bank for such a reason. The cancellation of the credit card and non-reversal of the annual fees charged by the bank can be due to either a system error or an internal miscommunication by departments within the bank.
The first step is to resolve this issue by communicating with the bank and requesting a waiver of all the charges.
In the event that there is no action taken by the bank, a complaint can be lodged through its online complaint portal or by email. Attaching any supporting documents to prove your argument should be submitted at this stage.
It may have been a one-year promotional offer the bank was running to encourage people to sign up for the credit card.
Alison Soltani,
founder of Leap Savvy Savers
If the bank does not take any action for the next 30 days, you can raise a complaint with the UAE Central Bank through its website. You will need to attach the supporting documents and the complaint reference number from your bank.
Once the case is resolved with the bank, request a no-liability letter. The bank should notify the AECB in its monthly report about the closure of the card. When AECB receives rectified data, it will update your credit report, which will lead to a change in your credit score.
Make sure to review your AECB credit score after 30 to 45 days to ensure that the default has been removed and the score is updated.
Meanwhile, if you are applying for a loan, you can provide the justification to the bank about these charges and the credit evaluation team can consider your case for approval.
Alternatively, you can wait for the AECB report to reflect the closure of the account and reapply for a loan.
Debt panellist 3: Alison Soltani, founder of Leap Savvy Savers
I am sorry to hear of your predicament — it is frustrating to realise that fees were accruing, unbeknown to you, on a credit card that you were not using.
It may have been a one-year promotional offer the bank was running to encourage people to sign up for the credit card, and they might not have explicitly confirmed that the fee would be applied after the offer period expired.
It is worth asking any agents, companies, financial institutions or banks to outline all fees associated with their financial products in writing before you sign up.
Despite the fact that you did not activate the card, you are still liable for the fee unless you cancel it with the bank.
The Dh2,000 will, in all likelihood, be the annual fee plus any interest and late charges accruing on the account. This will definitely affect your credit score and is most likely the reason your loan application was rejected.
You can file a complaint against the agent — for not informing you about the fee — with the bank’s relationship manager and with the central bank by filling in the form on its website or by calling 800 22 823.
It may help your case if you have any written evidence, such as a message or email, which suggests that the credit card did not carry a fee.
Unfortunately, if the interactions were solely verbal, your complaint may not be upheld as the bank sent you paperwork with the card, which informed you of the fee. I would also check whether the fee is listed in any documents that you signed when you applied for the card.
If you wish to improve your credit score, frustrating as it may be, the best course of action would be to clear the Dh2,000 charge as soon as possible. Although your score will immediately reflect this, it will take time to recover to a point in which you will be able to apply for credit.
In the meantime, there are actions you can take to expedite your improved credit score.
Ensure all bills, fees and loan payments are made on time. Also, limit the number of accounts, cards and loan applications you make in a short time frame.
Additionally, do not use the maximum amount of any existing credit you have. For example, if you have a credit card with a Dh10,000 limit, it will be to your advantage if you use Dh3,000 to Dh4,000 per month and pay it off in full.
You could also request to become an authorised user on a fiscally responsible partner’s card, which will also positively affect your credit report.
The Debt Panel is a weekly column to help readers tackle their debts more effectively. If you have a question for the panel, write to pf@thenational.ae
Honeymoonish
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Milestones on the road to union
1970
October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar.
December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.
1971
March 1: Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.
July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.
July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.
August 6: The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.
August 15: Bahrain becomes independent.
September 3: Qatar becomes independent.
November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.
November 29: At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.
November 30: Despite a power sharing agreement, Tehran takes full control of Abu Musa.
November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties
December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.
December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.
December 9: UAE joins the United Nations.
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What sanctions would be reimposed?
Under ‘snapback’, measures imposed on Iran by the UN Security Council in six resolutions would be restored, including:
- An arms embargo
- A ban on uranium enrichment and reprocessing
- A ban on launches and other activities with ballistic missiles capable of delivering nuclear weapons, as well as ballistic missile technology transfer and technical assistance
- A targeted global asset freeze and travel ban on Iranian individuals and entities
- Authorisation for countries to inspect Iran Air Cargo and Islamic Republic of Iran Shipping Lines cargoes for banned goods
The specs
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- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
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- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
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- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
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The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
Juliet, Naked
Dir: Jesse Peretz
Starring: Chris O'Dowd, Rose Byrne, Ethan Hawke
Two stars
Day 2, Dubai Test: At a glance
Moment of the day Pakistan’s effort in the field had hints of shambles about it. The wheels were officially off when Wahab Riaz lost his run up and aborted the delivery four times in a row. He re-measured his run, jogged in for two practice goes. Then, when he was finally ready to go, he bailed out again. It was a total cringefest.
Stat of the day – 139.5 Yasir Shah has bowled 139.5 overs in three innings so far in this Test series. Judged by his returns, the workload has not withered him. He has 14 wickets so far, and became history’s first spinner to take five-wickets in an innings in five consecutive Tests. Not bad for someone whose fitness was in question before the series.
The verdict Stranger things have happened, but it is going to take something extraordinary for Pakistan to keep their undefeated record in Test series in the UAE in tact from this position. At least Shan Masood and Sami Aslam have made a positive start to the salvage effort.
Where to donate in the UAE
The Emirates Charity Portal
You can donate to several registered charities through a “donation catalogue”. The use of the donation is quite specific, such as buying a fan for a poor family in Niger for Dh130.
The General Authority of Islamic Affairs & Endowments
The site has an e-donation service accepting debit card, credit card or e-Dirham, an electronic payment tool developed by the Ministry of Finance and First Abu Dhabi Bank.
Al Noor Special Needs Centre
You can donate online or order Smiles n’ Stuff products handcrafted by Al Noor students. The centre publishes a wish list of extras needed, starting at Dh500.
Beit Al Khair Society
Beit Al Khair Society has the motto “From – and to – the UAE,” with donations going towards the neediest in the country. Its website has a list of physical donation sites, but people can also contribute money by SMS, bank transfer and through the hotline 800-22554.
Dar Al Ber Society
Dar Al Ber Society, which has charity projects in 39 countries, accept cash payments, money transfers or SMS donations. Its donation hotline is 800-79.
Dubai Cares
Dubai Cares provides several options for individuals and companies to donate, including online, through banks, at retail outlets, via phone and by purchasing Dubai Cares branded merchandise. It is currently running a campaign called Bookings 2030, which allows people to help change the future of six underprivileged children and young people.
Emirates Airline Foundation
Those who travel on Emirates have undoubtedly seen the little donation envelopes in the seat pockets. But the foundation also accepts donations online and in the form of Skywards Miles. Donated miles are used to sponsor travel for doctors, surgeons, engineers and other professionals volunteering on humanitarian missions around the world.
Emirates Red Crescent
On the Emirates Red Crescent website you can choose between 35 different purposes for your donation, such as providing food for fasters, supporting debtors and contributing to a refugee women fund. It also has a list of bank accounts for each donation type.
Gulf for Good
Gulf for Good raises funds for partner charity projects through challenges, like climbing Kilimanjaro and cycling through Thailand. This year’s projects are in partnership with Street Child Nepal, Larchfield Kids, the Foundation for African Empowerment and SOS Children's Villages. Since 2001, the organisation has raised more than $3.5 million (Dh12.8m) in support of over 50 children’s charities.
Noor Dubai Foundation
Sheikh Mohammed bin Rashid Al Maktoum launched the Noor Dubai Foundation a decade ago with the aim of eliminating all forms of preventable blindness globally. You can donate Dh50 to support mobile eye camps by texting the word “Noor” to 4565 (Etisalat) or 4849 (du).
Abu Dhabi GP schedule
Friday: First practice - 1pm; Second practice - 5pm
Saturday: Final practice - 2pm; Qualifying - 5pm
Sunday: Etihad Airways Abu Dhabi Grand Prix (55 laps) - 5.10pm
The nine articles of the 50-Year Charter
1. Dubai silk road
2. A geo-economic map for Dubai
3. First virtual commercial city
4. A central education file for every citizen
5. A doctor to every citizen
6. Free economic and creative zones in universities
7. Self-sufficiency in Dubai homes
8. Co-operative companies in various sectors
9: Annual growth in philanthropy
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
