Why did an Abu Dhabi court order a UAE bank to refund Dh92,854 and clear a customer’s credit card debt?
An Abu Dhabi court ordered a bank to refund Dh92,854, close a customer’s credit card account and issue a clearance certificate after it failed to provide documents proving that he had agreed to the interest rates and fees charged. A court-appointed banking expert reviewed the account and found that the customer had paid Dh1.605 million against withdrawals of Dh1.403 million, with unsupported charges and compound interest removed from the calculation. The court accepted the expert’s findings and also awarded 3 per cent annual interest on the refund from the date the lawsuit was filed, subject to a cap equal to the principal amount. The ruling highlights the importance of banks maintaining proper records and proving the contractual basis for charges imposed on customers.
