Urgent UAE: Banks decide to stop credit cards in this case
According to two bankers, if a credit card's credit limit is exceeded, banks will take action by withholding credit card installment payments for 60 days after the first payment is due. They said that these actions would entail agreeing to issue a new card and setting up a new payment method, as well as suspending the card until all arrears are settled.
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"Banks where the customer's salary is not available are more rapid in taking these measures, compared to the salary bank," they continued, telling "Emirates Today."
Explained in more detail, the banker Tamer Abu Bakr stated, "Customers must pay credit card payments on time in accordance with the established method, whether by paying 100% or 5%, but the banks will halt... if the card's entire credit limit is used and other sums surpass it. The card has not received any payments from the customer for the first sixty days after the first payment was due.
"Usually with lower payments, the situation is different," he continued. "That is to say, if the customer did not use the card's credit limit and was late with a payment, it is usually not stopped; instead, the collection departments get in touch with him to determine the reason for the delay and work out a payment and commitment plan."
"Banks grant cards to customers, whether their salaries are with them or with another bank, as long as their credit rating allows it," stated Mustafa Ahmed, a banker. Since the salary is a guarantee for any arrears and the possibility of seizing the available balances in favor of the credit card, unlike other banks that only have a guarantee check, and this is used as a step, there is great care to monitor the extent of payment commitment, especially from banks that do not have Customer salaries. The statement goes on to say that "these banks are usually faster in taking action than the salary deduction bank."Ultimately, in specific circumstances, following the point of default and total payment cessation.
He emphasized that "customers must commit to making payments on time on time every month, to avoid late fees and interest accumulation," saying that "banks resort to stopping the credit card if the customer's use of it exceeds the credit limit and does not pay for a period of 60 days from the due date of the payment."
