Introduction
An Abu Dhabi court ordered a local bank to repay Dh80,596 to a customer after confirming the bank made unlawful deductions on a loan. The court also directed the bank to pay 3% annual interest on the refunded amount. The ruling followed a detailed financial report that showed the bank charged the customer more than the approved loan terms. The decision highlights the strong legal protection available to customers in the UAE. The case also shows how expert reviews help courts identify unfair financial practices.
Key Role in the Judgment
The court asked an independent financial expert to study the customer’s complaint. The expert reviewed all loan statements and payment records. The report showed clear evidence of excessive deductions taken without proper approval. The bank failed to justify the extra charges. The findings supported the customer’s claim and proved that the bank violated loan rules. The court relied on the expert’s findings to issue its order. The judgment reflects the importance of transparency in financial dealings.
Customer Rights Protected
The ruling sends a strong message to banks operating in the UAE. Banks must follow loan terms exactly as agreed. Any unauthorised charges are unlawful. Customers have the right to challenge such deductions through the legal system. The case also shows that UAE courts move quickly when financial rights are violated. The 3% annual interest ordered by the court ensures the customer is fully compensated. The judgment strengthens trust in the UAE’s financial system and consumer protection laws.
Ruling Sets a Clear Standard
Legal experts say the ruling sets a strong standard for future disputes involving bank charges. They note that the case encourages banks to review their internal systems. They also expect more customers to raise concerns when they notice irregular deductions. The decision reinforces the UAE’s commitment to fairness and transparency in financial services. The judgment helps protect thousands of borrowers who rely on clear loan agreements.
Conclusion
The Abu Dhabi court’s decision is a major win for customer protection. The ruling confirms that banks must follow strict rules when handling loan repayments. It also shows that customers have strong legal support when facing unfair charges. With the refund and added interest, the case sets an example for responsible banking across the UAE.
