UAE banks' harassment of defaulters "out of control"

UAE banks' harassment of defaulters "out of control"

Managers claim no control over automated calls generated once a customer has defaulted

By

• VM Sathish

Published Wednesday, October 19, 2011 (Emirates 24/7)

Customers who have defaulted on loan payments, irrespective of the amount and the period of delay, are complaining of constant harrassment by UAE banks.

Even customers with good credit histories and small amounts of repayment obligations are intimidated by regular calls, short message services (SMS) and phone calls automatically generated by the banks’ software systems.

Even customers who have repaid their obligations and closed their accounts get these automated.

Surprisingly, bank managers are saying systems are in place that are beyond their control.

Bank managers who spoke to 'Emirates24|7' admitted that they are unable to stop such calls and SMSes which are automatically generated by software that the banks have been using to track down willful and potential defaulters.

The loan servicing software that banks use does not distinguish between a willful defaulter and a customer who has a small repayment obligation.

Bank managers say these collection services are mainly outsourced and many agents from the same entity may be calling up the same customer.

Automated loan management software is used by most of the banks in the UAE.
Says an aggrieved customer of Emirates NBD: “I am annoyed by SMSses and phone calls that I get  every few hours from the bank, even after I  have discussed the matter with the concerned bank officials to settle the payment.

“As per the bank’s message, I approached the nearest branch and assured the loan manager about my payment schedule. I have just one month’s loan installment pending which was overdue for a few days as I was away from Dubai.”

“I had taken a loan of Dh 200,000 and have been regularly repaying it for the last three-and-a -half years. I have already repaid Dh 140,000 and due to unavoidable circumstances, I went to my home country and could not keep sufficient balance in my account.

“When I returned from vacation, I started receiving five to six phone calls a day, SMSs and even personal calls from collection agents,” he added.

“This happened even after I met the concerned official in the nearest branch of the bank, as advised by one such SMS, and told him to take my overdue installment from the next month’s salary, which is going regularly to  the same bank.”

“There is no problem, the bank will cut your due installment from your next  month’s  salary,” the manager had assured.

“We will block your salary account if you don’t make the payment within 24 hours,” threatened the bank’s collection staff.

This is in addition to at least ten pre-recorded messages and SMSs that I receive even at odd hours, reminding me that I am a big defaulter.

“Our investigation has revealed that there was a payment default on October 1, 2011. The call received by you are due to this default. This call will stop once the payment is received in your account and your account is normalised. We apologise for the inconvenience caused,” wrote the quality service manager of the bank.

However, the bank officials assured the customer that the threatening calls from the bank’s employees will stop now and that they have no control over the automated calls generated by the special software that the bank is using.

“These phone calls and SMS are sent by robots after the system generates an automatic file if a loan installment is in default.

The system automatically creates a file of the defaulter and uses various methods - automatic phone calls and SMS messages to the customer’s  mobile phones. We hope nobody will call and threaten you personally. We don’t have any control on the phone calls and SMS that the system is generating automatically,” the manager admitted to this reporter.

“I had a credit card payment delay for Dh200 and I informed the foreign bank that I will make the payment at a particular time. Even after making the payment, I continued to receive threatening messages and phone calls from the bank’s collection department.  For just Dh400 that I have already paid,” said Joseph, who has a credit card account with a leading foreign bank in the UAE.

“The bank officials told me to ignore the calls and not make the payment as the calls are automatically generated.

“However, it is annoying as the calls are threatening customers who have already paid.They are saying these are  system- generated calls, but there should be human control over the system. The system, which was updated with my repayments, kept sending me these messages,” he added.

http://www.emirates247.com/eb247/banking-finance/banking/uae-banks-harassment-of-defaulters-out-of-control-2011-10-19-1.424216

 

Be careful who you give your passport copy to

Be careful who you give your passport copy to

Unemployed clerk in jail for Dh500,000 fraud he says he did not know about

 

Be careful who you give your passport copy to. Sree Raj Adiyodi, 34, an unemployed clerk, says his copies were used to open a bank account in his name without his knowledge. 

Now Sree Raj has been languishing in a Sharjah jail for the past five months as part of an ongoing investigation into fraudulent withdrawal of Dh500,000 from another company's account in 'his'

account. He claims he had nothing to do with it. The money has long since vanished. 

Sree Raj used to earn between Dh 2,000 to Dh3,000 a month. 

“He was arrested and detained by the Sharjah Immigration Department on June 5, 2011, while he was going to India through Sharjah airport. He was taken to the Al Buhaira police station and was shocked to know that a bank account in his name was misused to withdraw Dh500,000 from the bank account of a printing press in Sharjah,” said legal sources familiar with the case.   

His cousin, Santhosh Kumar, says the man cannot even get bail because of the huge amount involved. 

A case was filed by the printing press owner who lost Dh216,000 from his account in a day. 

"While he was sitting in the police station to complain about the unauthorised transaction, he received an SMS alert from his bank saying another Dh300,000 had been withdrawn," said the source. 

With the help of the two banks' anti-fraud wings and Sharjah police, more than Dh300,000 was retrieved. The printing press owner eventually lost only Dh 216000,” he added. 

Sharjah Police investigation started in the first week of May. They led to Sree Raj’s bank account and the cheque book obtained from the bank by another Indian, who is also in jail now. 

Legal experts warned the public from giving out their passport or visa copy to strangers because it can be misused to conduct illegal bank transactions. 

The money was withdranw using the cheque book of the printing press. “Several cheques worth Dh70,000 and Dh65,000 were sent for collection through Sree Raj’s account. Only two cheques could be cashed. A chque book of 50 leaves was fraudulently obtained from the bank to write these illegal cheques,” said sources. These transactions happened in May 2011. 

According to the case filed by the Sharjah Public Prosecution, (Case No: 9828/2011) Sreeraj has an account in Mashreq Bank where the fraudulent funds were transferred. “We know that he did not open any account in Mashreq Bank. He had only a salary account in Emirates NBD. 

Sreeraj was looking for job. He had sent his CV to many offices and a representative of a petrochemical company called him for a telephone interview and asked to email his passport copy with visa page and a copy of  his labour card.”   

He was told that it was to crosscheck with labour department for easy visa transfer. 

Sreeraj and his relatives believe that his passport copy was misused to open the Mashreq bank account. After sending his passport copy and other documents, he never heard from the petrochemical company representative.

 

Increase in gold prices opens smuggling route to India again

Increase in gold prices opens smuggling route to India again

Two passengers from Dubai arrested at Indian airports for illegally trying to bring in large quantities of gold

In the 1970s and 80s in India, you could not hear a story, see a film or know a gangster that was not burnished by some small (or tall) tale of gold being smuggled from the Middle East.

The economies of scale – heavy duty on gold in India, relatively cheap gold in Dubai and a maritime route to India that Somali pirates of today would relish - made it an attractive risk.

Then, India liberalised, and smuggling the metal no longer made economic sense.

Circa 2008. Global economic crash leads to major spike in gold prices.

Now, 2011, gold seems to be the only asset with any lasting value.

Suddenly, Indian authorities see a spike in undeclared gold being smuggled in to the country from places like Dubai, and even as far away as Hong Kong.

Two Indians were arrested this week for carrying large quantities of undeclared gold from Dubai.

People of Indian origin are allowed to carry upto 10kg of gold provided they pay a duty of Rs300 (Dh30) for 10grams if it is ornaments and Rs750 (Dh75) for 10gm in case of bars.

On Friday a Dubai-based businessman, was arrested by customs officials in an Indian airport when he was found carrying 2.5kg of gold.
The gold is valued in India at around Dh474,000.

Speaking to 'Emirates24|7', a senior customs official in Mumbai yesterday said the issue is being investigated.

“The rules are very clear. For those purchasing gold valued at over Indian Rs40 lakh (Dh400,000), it is no big deal to pay a few thousands as customs fee. But they refuse to declare the gold as they do not want to reveal the source of income,” said an assistant commissioner at the Commissioner’s office for Customs in Mumbai.

The 47-year-old garment businessman Badrul Munir Ambidatti from Kannur district in Kerala was travelling from Dubai to Pune.

According to reports quoting customs officials in Pune, the gold is worth Rs63lakhs (Dh630,000).

He has been remanded to custody until October 28.

According to officials the incident could have been easily gone undetected if not for suspicious movement by the passenger, who had hidden the gold ornaments in his socks.

Some officials found Ambidatti’s movements suspicious and checked his baggage thoroughly. The accused had hidden gold ornaments in his socks. Police believe there could be more people involved in the racket.

Another Indian businessman, a developer, was arrested in Mumbai airport for carrying gold worth Dh158,000.

Amol Ferreira, was travelling on an Emirates airline flight from Dubai to Mumbai and was arrested as he was trying to leave the airport without declaring the product.

Officials at jewellery stores in the UAE agreed that the real motive behind the non-declaration of gold imports may not be to avoid paying customs duty.

“It is to basically to hide black money and unofficial source of income. Today gold is the most preferred form of investment and there are many cases where people from India come to Dubai to shop for gold and either take it back with them or send it through other trusted passengers,” said an owner of a leading chain of gold and jewelry stores in Dubai.

When asked if it is common for high volume purchases he said, “We are not allowed to sell one kilogram gold bars. Biscuits and ornaments can be purchased for any amount. It is not very common for people to purchase for more than Dh500,000 or one million. At least it has never happened in any of my stores.

Guidelines issued by the Central Board of Excise and Customs in India states that for the purpose of customs clearance of arriving passengers, a two-channel system has been adopted wherein green channel is for passengers not having any dutiable goods and red channel is for passengers having dutiable goods.

“Passengers walking through the green channel with dutiable or prohibited goods are liable to prosecution and penalty and confiscation of goods. One of the businessman was arrested because he was trying to walk through the green channel,” said the customs official.

 

Nine-day holiday break likely for Eid

Nine-day holiday break likely for Eid

Eid Al Adha expected to fall on November 6

Eid Al Adha is expected to fall on November 6 according to WAM.

This could mean that the UAE could enjoy a nine-day holiday break, including weekends.

November 6 is a Sunday, and as has been the case previously, five days of public holidays may well be declared – till Thursday November 10. This would include schools as well.

Count the weekend (Nov 4-5) before and the one after (Nov 11-12) and the Emirates could be on holiday for nine days.

While the private sector may get three days, that is only till Tuesday, November 8, many people are likely to take two extra days of leave to avail of the full nine day break.

Dhu Al Hijja, the 12th month of the lunar Islamic calendar that marks the beginning of the Haj season and Eid Al Adha, is expected to fall on October 28.

Eid is celebrated on the 10th of this month.

Eid Al Adha, like Ramadan, must be confirmed by moon sighting, as per Islamic tradition.

The moon will emerge on October 26 at 11.56pm.

 

Fines for women applying makeup while driving in Dubai

Fines for women applying makeup while driving in Dubai

Dh200 and four black points for distracted driving

Women drivers in Dubai beware!

Applying makeup while driving can now get you pulled over and fined.

If texting, speaking on mobiles phones and reading newspapers while driving is dangerous, so is applying make-up, said a top traffic official.

Major-General Mohammed Saif Al Zaffin, Director of Dubai Traffic, said, distracted driving such as applying makeup will incur a fine of Dh200 and four black points.

However, women are free to do the same while the car is parked, he added.

He was speaking at a press conference to launch an awareness campaign on the dangers of drinking and driving.

The hazards of distracted driving are manifold, he said and added women who apply makeup while at the wheels will not be able to concentrate and react to emergencies, he added.  

Al Zaffin said he issued fines to four women in Dubai for reckless driving that endangered others’ lives.

About 15 per cent of total licence holders in Dubai are women.

Meanwhile, women committed 83 traffic accidents, which is 8.6 per cent of total road mishaps.

They were responsible for eight deaths and 147 injuries.

 

Mohammed orders Emirates NBD takeover of Dubai Bank

Acquisition in line with Dubai efforts to enhance banking sector

Emirates NBD and Dubai Bank (FILE)

Emirates NBD Bank, the largest lender in the United Arab Emirates, has taken over Islamic lender Dubai Bank on orders of the ruler of Dubai, a press statement of the Dubai Government Media Office stated
on Tuesday.
His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE, in his capacity as the ruler of Dubai, has given orders that Emirates NBD take over Dubai Bank, the statement said.
The Dubai Government is keen to take the necessary steps to empower financial institutions to fully operate in a way that serves the national economy and consolidate the country's position as a first class international financial hub, the statement added.
Sheikh Ahmed bin Saeed Al Maktoum, Chairman of Emirates NBD stressed that this step is a practical translation of Dubai Government's commitment to implement comprehensive and integrated financial and economic approach that contributes to strengthening the domestic banking sector and enhancing the UAE's leading financial position in the Gulf and Middle East.
Sheikh Ahmed expressed confidence that the takeover would achieve its fruitful objectives shortly and would reflect positively on the performance of UAE banking in general in the coming period.
He indicated that adopting a flexible approach and taking initiative are the core of the Dubai Government's perspective that enables it to deal successfully with global economic changes, especially during the past few years by applying a series of strategic and decisive steps as per the directives of His Highness the Ruler of Dubai in keeping up with market demands and providing supportive environment to business sectors.
Dubai Bank was acquired in May by the government of Dubai, which pledged to inject capital into the lender.
At the time, the government said the takeover would ensure that Dubai Bank's business continues uninterrupted.
Dubai Bank posted a net loss of Dh290.6 million ($79.2 million) in 2009, the last financial results to be made public.
Before the takeover, Dubai Bank was jointly owned by Dubai Holding, with a 70 per cent stake, and Emaar, Dubai's main property corporation, with 30 per cent.