• May 23, 2018
    Last updated 6 minutes ago

complaints

Incorrect information about interest rate

Reader expected a 2.5% interest rate and instead had to be 10.8%

Gulf News
19:21 January 19, 2018

I would like Gulf News’ assistance regarding my complaint with First Abu Dhabi Bank (FAB). On August 15, 2017, I received a call from an agent of FAB, offering me a loan. He said it was the best time for a loan because they had a very good promotion. I asked him how much the interest per year would be and he said it was only 2.5 per cent.

Then, we met up to hand over my documents and to sign the form. Before I signed it, I asked again how much the interest per year would be, and he confirmed that it was 2.5 per cent per year. When I received my loan – Dh25,000 – I checked via online banking and it said that my monthly interest was 0.9 per cent per month. That would be 10.8 per cent per year. I verified it with the customer service and they confirmed that 10.8 per cent is the interest that I would need to pay. I sent an message to the agent on Whatsapp and he asked me why I called customer service, as the 2.5 per cent per year interest rate is still in process. However, customer service had already confirmed that I needed to pay 10.8 per cent a year. When I spoke with him before signing the documents, I said I wanted to pay the loan in two years, but when I checked through online banking, it showed that I had four years to pay. The agent kept saying if I wanted early settlement, I didn’t need to pay the remaining interest. I wanted to clarify if this is true — I will not pay the remaining interest if I do an early settlement.

From Mr Raymond Silva Bella

Dubai

The management of FAB responds:

FAB supports the growth ambitions of its stakeholders and goes beyond financial products and services, and as such, we are grateful for all customer feedback as we strive to consistently deliver the highest standards of service. The bank has been in contact with Mr Bella, and explained that the terms of the plan were clearly communicated with the customer before the loan was disbursed. FAB has offered to settle the loan with no further interest, however the customer has declined.

The reader responds:

I went to FAB’s office in Deira, Dubai, met the manager and informed him that the agent did not explain the terms of the plan of loan. He kept on telling me that the interest was only 2.5 per cent per year. The agent did not explain how much the monthly payment would be and I did not even see the document with all the terms and conditions.

The manager said he cannot give the 2.5 per cent per year interest rate, and that the interest that I needed to pay was 10.8 per cent per year. His offer was that if I would like, I should give back the money and they would not charge any interest and would bring back the offer. That is what I declined, as I had already used the money.

My colleague also received a call from the same agent and he is again offering the same interest rate, which is 2.5 per cent per year.

Editor’s note: The reader’s concerns were raised with the management of FAB. However, despite repeated reminders, they did not respond.

(Process initiation: September 16, 2017. Response from organisation: December 7, 2017. Process completion: December 25, 2017.)

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.