Huge losses due to double interest on loan.
Summary: Reader complains that the bank charged him double the promised rate on his loan
I have a complaint against United Arab Bank (UAB). They approached me for a personal loan at a specific rate but when they signed the papers, and I settled my first payment, I discovered it was almost double the rate that we had agreed upon.
I asked the bank to go back and check the recorded calls linked to my mobile number since the initial call to confirm the rate, but the bank has rejected all my requests and didn't even take into consideration the text messages I have from their sales agents. They have refused my requests to cancel the loan without me losing the charges.
That is why, I was obliged to cancel my loan through UAB three months after the first payment and shift my loan to another bank, and this has resulted in a huge loss for me; more than Dh35,000 for early settlement charges, insurance, and processing fees.
Their quality assurance representative promised me that at least the insurance and processing fees would be reversed, but nothing has happened and the bank hasn't done anything to reduce my losses.
From Mr Fouad Naghi
The management of UAB responds:
Thank you for contacting United Arab Bank to solve the complaint raised by Mr Naghi. We would like to inform you that after investigating the matter, the interest rate and charges applied on the said loan is as per the loan application. The account holder has recently applied for a top up and signed a new application with our sales team on which, it clearly mentions the new loan rate and all applicable fees and charges.
At United Arab Bank, we always strive to serve and support our customers while abiding by our processes and regulations.
(Process initiation: July 24. Response from organisation: July 25. Process completion: August 14.)
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