UAE Bank Ordered To Clear Customer's Credit Card Debt After Failing To Prove Charges

An Abu Dhabi court ordered a bank to refund a customer Dh92,854 and close his credit card account after an expert found the bank had charged interest and fees without producing documents showing the customer had agreed to them.

The court also ruled that the customer owed no remaining debt on the card and ordered the bank to issue him a clearance certificate. It awarded 3 per cent annual interest on the refund from the date the lawsuit was filed until payment, capped at the principal amount.

The customer told the court he applied for financing from the bank in 2013 and was given a credit card with a Dh50,000 limit. He said he had paid all amounts due, including sums exceeding the debt, but the bank continued to seek further payments.

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A court-appointed banking expert reviewed the account statements. The bank was not able to produce the original card application or documents setting out the agreed interest rate and fees. It said those records had been lost in a fire where its documents were stored.

The expert recalculated the account using simple legal interest and removed compound interest and fees that the bank could not show had been agreed upon. The review found total withdrawals of Dh1.403 million and payments by the customer of Dh1.605 million. After adjusting the account, the expert concluded that a total of Dh92,854 was owed to the customer.

The court accepted the expert's findings, saying they were based on account statements and supported by adequate technical reasons. It said the bank's objections had been addressed by the expert and that the bank had not been able to produce any evidence undermining the report.

The court ruled that the bank had repeatedly delayed the payment despite owing the customer the amount. It ordered the institute to pay the Dh92,854 refund and interest, clear the customer of any outstanding card debt, close the account and provide a certificate confirming there was no liability.

The bank was also ordered to pay court costs and Dh200 in legal fees. The court rejected the customer's remaining requests.

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