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Article (15) General Provisions

C 29/2011 Effective from 29/3/2011

a) Banks or finance companies are not allowed to alter or vary terms and conditions for granting the loan or the facility during the tenor of the loan or the facility, unless agreed to in writing by the borrower. In case of changes to the commissions or fees, customers must be notified, at least, two months prior to implementation of such changes.

b) Banks and finance companies are prohibited from taking blank cheques for granting loans or overdraft facilities, or for issuing credit cards.

Clarifications and Guidelines (Notice No. 2901/2011)
  1. If a bank uses additional pages to the forms prescribed by the Emirates Banks Association, such sheets containing terms and conditions should be accepted by the borrower under his signature.
  2. Banks are not expected to upgrade a customer’s status whether for his credit card or other similar facility unless his prior concurrence has been obtained. Besides written concurrence, banks would be allowed to use SMS or email facility to communicate with the customers and obtain their concurrence.
  3. Effective 1 May, 2011 all new personal accounts will be subject to the revised fee structure. Existing customers will however be given two months notice from that date through letters or via electronic means. Further the revised fee and charges will not be applied retrospectively.
  4. Banks should continue to pay greater emphasis on cash flow/ repaying capacity of the borrower and less on security or guarantee.
  5. 5.As hitherto, banks are prohibited to take private houses as security for personal loans or take personal guarantees as security when these loans are given to non-UAE nationals.
  6. No fees and charges have been mentioned for credit cards and banks may maintain status quo.
  7. Banks may levy relationship based fee on personal accounts and offer incentives to high value customers provided a specific fee or charge does not exceed the maximum permissible rate specified in the rate structure.