Warnings to bank customers in the Emirates against stopping credit cards in some cases
Two bankers in the United Arab Emirates have warned UAE bank customers that the bank may suspend credit cards in some cases.
A word of caution to bank customers in the Emirates not to freeze their credit cards in certain circumstances.
Two bankers in the United Arab Emirates have sent a warning to customers of UAE banks that the bank may stop their credit cards in certain circumstances.
Credit card suspension cases in the UAE
According to the statements of two bank employees, in the event that the credit limit of the card is exceeded, banks will take precautions, such as delaying the payment of credit card installments for a period of sixty days from the date that the first payment was due. They indicated that these measures include stopping the card until all arrears are paid, and then agreeing to issue a new card and arranging A new payment mechanism. Additionally, they added in a press statement that "banks in which the customer's salary is not available are more prompt in taking these measures, compared to a salary deductible bank."
When do banks in the UAE stop credit cards?
Mustafa Ahmed, the banker, was quoted as saying, "Banks give cards to customers as long as their credit rating allows it. This is regardless of whether the customers' salaries are held with the bank itself or with another bank." Because of this, there is a great deal of care taken to assess the level of commitment to payment, particularly from financial institutions that do not hold their clients' income. He continued by saying, "These banks are usually faster in taking action than the salary bank, 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 the final step, after... Reaching the stage of default and complete cessation of payment and within certain conditions." He explained 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 time that is sixty days from the date that the payment is due." He emphasized "the necessity of customers' commitment to paying," stating that "payments are made on time every month, to avoid late fees and interest accumulation." "Customers are required to pay credit card installments on time according to the agreed-upon mechanism, whether by paying 100% or 5%, but if the entire credit limit of the card has been used and other amounts have increased," the banker, Tamer Abu Bakr, added in greater detail. "Customers may pay 5% or 100% of the balance, but only if they pay the minimum payment." When this occurs, the card is cancelled by the bank after a period of sixty days has passed after the initial payment's due date without the consumer having made any payments.