The Question: Can a Bank in the UAE Deducts Money Without Approval from a Customer?

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If a bank deducts money for what was thought to be a mandatory fee but is revealed to be related to an insurance for which has no mention in the original contract and no authorisation signature for such, would a bank customer have full rights to a refund all fees based on it being an unauthorised deduction (even in the face of the bank refusing to refund on grounds that it apparently advertised details of the insurance in separate marketing collateral it couriers post contract signing which would assumedly not be legally binding approval to deduct money from customers? If so under what governing law in the UAE relates to certainty of details in such bank to customer contracts being upheld?

Answer: Thank you for writing to us. Any fee or deductible is subject to the agreement signed with your bank. Therefore it is important that we review those agreements thoroughly before giving any advice on the matter.

Author: Hassan Elhais

Date Updated: March 27, 2017