Car mortgage release just a click away in Dubai.
The Roads and Transport Authority (RTA), in coordination with 70 mortgage providers in Dubai, has made the release of a car mortgage a click away, effectively stopping the paper certificates involved in the process.
The new online service, which was initiated on March 1, will be beneficial mainly to banks and will resolve the problem of forged bank certificates and those with mistakes in names on them.
Introduced a few months back to electronically link at least 70 banks, financial institutions, car companies and other mortgage providers in Dubai, this RTA online service simplifies the process, which in the past involved securing a mortgage release certificate from banks and presenting them to RTA's Licencing Agency.
In an interview with Khaleej Times, Ahmed Bahrozyan, CEO of RTA's Licensing Agency, said the agency is no longer accepting paper certificates from clients to prove that a vehicle debt has been repaid. "Banks and other mortgagors provide this information online directly to the Licensing Agency.
The agency informs the client by email and SMS that the vehicle mortgage has been released by their mortgage provider. So, there is no need for clients to visit their mortgage provider or the RTA," he said.
Vehicle owners in Dubai can now heave a sigh of relief from the previous circuitous process, which sometimes entails a long wait for the release of bank certificates.
"The RTA, in cooperation with vehicle mortgagers, has always been enhancing its online service to improve convenience to clients who have paid their vehicle mortgages, while reducing a mortgage provider's business costs," said Bahrozyan.
Even as the RTA required all mortgage providers to be online by February 1, he said, vehicle owners have complained that some banks have been slow to release the mortgage. "Some bank customers have complained to us that it takes three to four days after they fully repay their mortgage for the banks to issue the electronic certificate to the RTA.
"There is no reason for the banks to still be slow in the issuance of the electronic certificate because the design is simple and takes only seconds to do it. Leading banks in Dubai have participated in designing the system. Hence, our RTA Centre will keep monitoring this new online system and resolve these remaining issues with them. In fact, we are giving the control to the banks," Bahrozyan added.
Copyright 2014 Khaleej Times. All Rights Reserved. Provided by Syndigate.info , an Albawaba.com company
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|Publication:||Khaleej Times (Dubai, United Arab Emirates)|
|Date:||Mar 4, 2014|
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