Credit Cards and Loans: Your Rights and Responsibilities from Illustrado
Did you know that banks are not allowed to take blank cheques as a condition for your loan approval? This is provided for under Article 15 (b) of the UAE Central Bank Regulations No 29/2011 regarding bank loans and services offered to individual customers.
Learn about the regulations of the UAE Central Bank pertaining to credit cards, personal loans, top-up loans, car loans and overdraft facilities, as well as the rights and responsibilities of banks and their customers.
Your debts could land you in jail! Learn how to avoid it here.
Credit Cards
Article
5 (a) of the Regulations defines credit cards as plastic cards linked
to an electronic network, containing details and credit limit of the
card holder. Value of a customer’s purchases and cash withdrawals are
paid on his behalf by the issuing bank or the finance company, and the
customer pays the value at the beginning of the month following the
transactions’ month, or by installments as per agreement with the
issuing bank or finance company, after end of the period allowed for
full payment of the balance.Banks and Finance Companies issuing such cards must abide by the following:
- Provide these cards to persons whose annual income equal or exceeds AED60,000.
- These cards may be provided against a pledged deposit of value not less than AED60,000.
- Banks or finance companies should provide their credit card customers with a monthly statement of expenses, showing values of purchases and cash withdrawals, and they should immediately investigate if a customer challenges any expense item.
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