Bank solves loan issue

Following an aggressive campaign by most banks for home loan buyouts in 2014, I agreed to move my home loan to Noor Bank in December 2014 based on promises and confirmation from the bank that I stood to make substantial savings in the first two years, beyond which market forces will prevail.

Unfortunately, the experience turned into a nightmare that I continue to suffer.

As soon as I signed the documents and provided them to a Noor Bank representative and the various cheques the bank required as security for the loan, my nightmare started. The bank started asking for more documents – some of which were not available to me at the time as it was not asked before. When I found out that I may not be able to provide some of the newly requested documents, I requested the bank to cancel the deal and to return all my signed documents and cheques. However, the bank representative I was dealing with informed me that it was not at all possible and the deal must go ahead. He said that the loan was already booked and that I was already liable to settlement even though the bank hadn’t dispersed any money. There was a threatening tone when he told me that I could never afford the legal costs to face the bank’s legal resources.

Noor Bank agreed to provide me with a loan of Dh3,250,000 against my home in Arabian Ranches, which is to be dispersed as follows:

Dh2,650,000 to buyout my loan from HSBC and Dh600,000 to Amlak Finance to settle the outstanding on a loan for an apartment in Skycourts.

Noor Bank sent me the loan repayment schedule in January 2015. The repayment schedule is dated January 31, 2015 and based on a loan being dispersed, then hence loan repayment installments to commence on February 28 2015.

While the repayment was demanded on time, as per the schedule of repayments, on February 28 2015, the disbursement of the loan was only started three months later and finally completed more than seven months later.

On initial protest, the bank used an ongoing promotion at the time and provided a two-month holiday on repayments.

However, that did not alter the real issue, I was now paying Noor Bank interest on money the bank did not actually disburse to myself or on my behalf while I continued to service my loans with HSBC and Amlak.

By looking at the repayment schedule it is clear that Noor Bank was charging a total of Dh123,061 as interest for the loan of Dh3,250,000, which is basically Dh10,000 per month.

Noor Bank charged me interest and made me repay for a home loan months before they had disbursed the loan amount. Around Dh35,000 was levied on me as interest for money the bank had not yet paid out.

Interest on my loan was to be fixed for the first two years at 3.49 per cent per year and loan repayments to be fixed for two years as per the loan offer letter and shall be Dh41,061 a month for 24 months.

Much to my surprise, last February the repayment was revised by the bank without prior notice. On enquiring with the bank’s call centre I was told interest was revised, hence the increase in my repayments. Upon registering a complaint and placing a reminder on the earlier complaints pertaining to the unfairly charged interest, a bank representative made an offer to reduce the interest rate for two years to compensate my losses. Nothing has been implemented since.

I would like the bank to compensate me for the interest they charged me on money they did not disburse to me or on my behalf. I want them to revise back the interest rate on my loan and hence, keep repayment installments as noted in the offer letter. I also need the bank to refund my account the extra amounts they back debited my account as a result of them revising the interest rate.

From Mr Mamoon Omar Hannoun

Dubai

The management of Noor Bank responds:

Noor Bank is committed to finding an amicable and fair solution towards any customer complaints. We are always transparent with our customers. This starts with acknowledging the problem raised by the concerned individual and working towards a swift resolution.

Soon after we received Mr. Mamoon Omar Hannoun’s complaint from Gulf News, our Customer Experience Unit investigated this matter further.

After further investigation, Noor Bank attempted to contact Mr Hannoun to resolve the situation. Our home finance and Customer Experience Unit then met with the customer in person to resolve the issue. Mr Hannoun has now been given the profit rate he was requesting and home finance EMI is set accordingly. A revised rental schedule has also been provided to Mr Hannoun, who has confirmed that the issue has been resolved to his satisfaction.

Noor Bank wishes to assure all customers of our best service and prompt response to any complaints and grievances they may have.

Mr Hannoun responds:

I would like to thank Gulf News for their efforts and I am happy to confirm that the intervention has helped resolve my issue with Noor Bank.

Once again, thank you for making available this powerful channel, which provides individuals with a rare opportunity to have their grievances with institutions heard and ultimately resolved.

(Process initiation: September 14. Response from organisation: September 18. Reader confirmation: October 1).

Editor’s note: Do you have similar issues that you would like to raise with us? You can write to us at readers@gulfnews.com.