I work as a head of finance in Abu Dhabi, earning over Dh40,000 per month. I am facing problems with a leading bank over a loan I paid back in 2015. At the time, I needed money quickly to pay emergency medical bills for a family member. I needed to borrow Dh450,000 and because my company was not listed with my primary bank, they were going to apply an interest rate of 10 per cent.
I later borrowed Dh200,000 from another bank, signing documents with the sales agent. This was the biggest mistake of my life, as while I had effectively given my consent for the finance to be transferred, I told the agent that I needed to approve the interest rate before I went ahead.
I later found out the Dh200,000 had been approved and transferred to my bank account. But no one ever informed me of the high 8.5 per cent interest rate. When I found out what it was, the bank had already transferred Dh195,000 into my account after deducting processing charges.
I immediately contacted the representative, as I wanted the bank to take back the money. I also contacted customer service and visited a bank branch to find out how to close the loan. I was ready to pay back Dh195,000, without the Dh5,000, which was a processing charge. Unfortunately, despite multiple calls and meeting the branch, no one provided me with a solution. Ultimately, I decided to transfer the Dh195,000 back to them. Since then I have been contacting various departments on how to get a loan closure confirmation.
During this period, the bank never got in touch. Then in March this year, I received an email and SMS from the bank saying that my loan was overdue and I must pay an instalment to avoid further actions.
I spoke to the collections team and and gave them the complete history with proof of the one-sided communications. They said that even though I have paid Dh195,000 in 2015, since there was no loan closure approved, the settlement had been adjusted. With the interest that has accrued until now, I now owe over Dh63,000; this is what I must pay to close my loan.
The most I am willing to pay is Dh15,000, as I never used the funds and my communications to close the loan were not acted on by the bank. This Dh15,000 offer has not yet been approved. In the meantime, I have paid one instalment of Dh5,800 as suggested by the collection manager. I have also registered a complaint with the Central Bank of the UAE and shared all my documents via their official website. I received a claim number, but no response has come in yet.
What should I do next? I did my best to communicate with the bank and realise my mistake was to sign the documents.
To give you more background, I have one other loan with another bank, on which I owe Dh100,000, which will be settled in June next year. I am from India but have lived my entire life in the UAE. My monthly expenses are Dh11,000 for my loan and Dh15,000 for utilities, rent and school fees. Excluding that normal expenses come to around Dh3,000. MP, Abu Dhabi
Debt Panellist 1: Philip King, head of retail banking at Abu Dhabi Islamic Bank
Signing for a loan without checking the rate and potential fees or charges is indeed a big mistake. While banks should clearly state the cost of borrowing in the main text of the contract, it is also advisable to read and understand the term and conditions, which are often found in the smallprint. This is where important contractual obligations can be found.
As per Central Bank of the UAE regulations, in case of early settlement of a loan, you are required to pay a 1 per cent early settlement fee on the principal outstanding or Dh10,000 whichever is lower. You have taken all of the correct actions to date by registering a complaint with the Central Bank while keeping regular contact with the bank. I encourage you to follow up with both the Central Bank and the lender as soon as possible.
Paying the early settlement charge due when you repaid the Dh195,000 should represent an equitable resolution for all parties. This should be adjusted from the instalment you have already paid on this loan.
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Debt panellist 2: Ambareen Musa, founder and chief executive of Souqalmal.com
You undoubtedly made a big error of judgement when you signed off on your loan application without knowing the interest rate you were going to be charged. And while this was the first mistake that stacked the cards against you, you made an even bigger mistake that's left you in this tight spot - you did not follow the correct protocol when attempting to close your loan.
While a loan-processing fee is non-refundable in any case, you would have also had to pay an early settlement fee or loan cancellation fee depending on how long the loan had been active. Since you closed the loan in an unconventional manner, you should have reached out to the bank and enquired about any pending dues.
The next step would have been to obtain a clearance letter or 'No Liability Certificate' from the lender. You mentioned that you had tried to get one from the bank initially, but you gave up when you didn't get any response from them. Ideally, you should have pursued this further, especially since you deposited the loan amount back to the bank without receiving any confirmation of receipt.
The final step, that closes the chapter on your debt once and for all, involves applying for a copy of your credit report and reviewing it for any remaining debt or associated charges under your name.
But now that it's too late to take preventive action, you should consider getting legal counsel to assist with your case. A legal representative will help negotiate with the bank on your behalf. Since the bank too failed to send any reminders to you regarding the missed payments and accumulating interest over this three-year period, you could use this to build your case.
__________
Read more:
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The Debt Panel: 'My lender is threatening a travel ban over my Dh105,000 liabilities'
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Debt panellist 3: Steve Cronin, founder of DeadSimpleSaving.com, which helps residents invest their own money
The success of your case is in the details, given you signed the loan. There may be no evidence that you wanted to check the loan interest rate before disbursement of the loan. It does sound though like the bank was in error by not closing the loan when you refunded it, as long as you informed them of where you sent the money and when. This is a classic example of an issue not resolved at the time that has spiralled into an expensive problem, possibly because you let it drag on while dealing with other priorities. You are correct to push the bank now to resolve this and you may need to push them harder.
Contact the Consumer Protection Unit of the Central Bank on 800 CBUAE and ask them about moving your case forward. Also, seek advice from them on interacting with your bank.
At the same time, try to get a meeting with the most senior person possible at the bank you borrowed from. Start with the head of the branch and work your way up, using LinkedIn to contact people if necessary. Make it clear that you have complained to the Central Bank and are considering legal action. Meanwhile consult a lawyer to see if you have a case for getting the outstanding balance erased and possible compensation. I do not see why you should pay Dh15,000 unless you can see where you were in error.
Your HR department may be able to help you if your company is large enough to have a relationship with the bank.
The loan interest expenses you are paying monthly on your other loan seem high – consider paying it off in advance if you have enough cash. Do not leave yourself vulnerable if you fail to get your Dh63,000 balance wiped though. Get your finances back in shape by saving and investing as much as you can, while reducing your expenses.
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
The specs
Engine: four-litre V6 and 3.5-litre V6 twin-turbo
Transmission: six-speed and 10-speed
Power: 271 and 409 horsepower
Torque: 385 and 650Nm
Price: from Dh229,900 to Dh355,000
Meatless Days
Sara Suleri, with an introduction by Kamila Shamsie
Penguin
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
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About RuPay
A homegrown card payment scheme launched by the National Payments Corporation of India and backed by the Reserve Bank of India, the country’s central bank
RuPay process payments between banks and merchants for purchases made with credit or debit cards
It has grown rapidly in India and competes with global payment network firms like MasterCard and Visa.
In India, it can be used at ATMs, for online payments and variations of the card can be used to pay for bus, metro charges, road toll payments
The name blends two words rupee and payment
Some advantages of the network include lower processing fees and transaction costs
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
Key facilities
- 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
- 400m Olympic running track
- 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
Crops that could be introduced to the UAE
1: Quinoa
2. Bathua
3. Amaranth
4. Pearl and finger millet
5. Sorghum
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
How to help
Call the hotline on 0502955999 or send "thenational" to the following numbers:
2289 - Dh10
2252 - Dh50
6025 - Dh20
6027 - Dh100
6026 - Dh200
Museum of the Future in numbers
- 78 metres is the height of the museum
- 30,000 square metres is its total area
- 17,000 square metres is the length of the stainless steel facade
- 14 kilometres is the length of LED lights used on the facade
- 1,024 individual pieces make up the exterior
- 7 floors in all, with one for administrative offices
- 2,400 diagonally intersecting steel members frame the torus shape
- 100 species of trees and plants dot the gardens
- Dh145 is the price of a ticket
The specs
Engine: 4.0-litre V8
Power: 503hp at 6,000rpm
Torque: 685Nm at 2,000rpm
Transmission: 8-speed auto
Price: from Dh850,000
On sale: now
More coverage from the Future Forum
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The smuggler
Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple.
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.
Khouli conviction
Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.
For sale
A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.
- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico
- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000
- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950
UAE currency: the story behind the money in your pockets
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
Engine: 5.6-litre V8
Transmission: seven-speed automatic
Power: 400hp
Torque: 560Nm
Price: Dh234,000 - Dh329,000
On sale: now
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
The more serious side of specialty coffee
While the taste of beans and freshness of roast is paramount to the specialty coffee scene, so is sustainability and workers’ rights.
The bulk of genuine specialty coffee companies aim to improve on these elements in every stage of production via direct relationships with farmers. For instance, Mokha 1450 on Al Wasl Road strives to work predominantly with women-owned and -operated coffee organisations, including female farmers in the Sabree mountains of Yemen.
Because, as the boutique’s owner, Garfield Kerr, points out: “women represent over 90 per cent of the coffee value chain, but are woefully underrepresented in less than 10 per cent of ownership and management throughout the global coffee industry.”
One of the UAE’s largest suppliers of green (meaning not-yet-roasted) beans, Raw Coffee, is a founding member of the Partnership of Gender Equity, which aims to empower female coffee farmers and harvesters.
Also, globally, many companies have found the perfect way to recycle old coffee grounds: they create the perfect fertile soil in which to grow mushrooms.
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The%20specs
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'My Son'
Director: Christian Carion
Starring: James McAvoy, Claire Foy, Tom Cullen, Gary Lewis
Rating: 2/5
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A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
