Central Bank inaction under fire

A few days after launching a public survey on its performance, the Central Bank has come under figure by banking clients who accused it of ignoring their complaints or simply is not doing enough to tackle their problems with banks.

But the Central Bank rebuffed such claims, saying it is not authorized to deal with some types of problems between banks and their customers and that its role comes to end once a case reaches court.

Quoted by Emirat Alyoum newspaper, an Emirati man said he had resorted to the Central Bank after his bank filed a court case against him.

“I asked my bank to reschedule my debt after I lost my job but it refused and filed a court case…I told the bank that I got a new job but I can not have it if there is a court case against me…it refused again,” Mohammed Jaber said.

“I complained to the Central Bank which told me that it does not intervene in such cases and that it is up to the court.”

A company manager, Ahmed Abdullah, told the paper that he had filed a complaint to the Central Bank that a bank withdrew funds from the firm’s account to make him pay his debt, adding that the bank violated laws when it failed to separate between his personal account and that of the company. “I informed the Central Bank but it simply ignored my complaint,” he said.

Another client, Ali Mohammed Ali, said he submitted an online complaint to the Central Bank that his bank seized his salary after it mistakenly cashed a draft in his name. He said the Central Bank asked that bank to inform it about the problem but added he had not received response five months after the complaint.

Another customer, Ayad Al Choubaki, said he had not been ignored by the Central Bank but added that it failed to tackle his problem.

He said a finance firm raised interest on a property loan provided to him and that he sought help from the Central Bank. He said the Central Bank contacted that firm to give explanation for its action but nothing changed.

Abdul Rahman Mohammed, an Emirati, said he had contacted the Central Bank after his bank refused to renew his credit card and seized a full month salary because of accumulating debt. He said he has net yet received any response.

“The Central Bank receives complaints not only from persons but from finance and investment companies,” a Central Bank official said.

“The Central Bank is the regulatory authority in the banking sector but it is not authorized to deal with all types of complaints…we advise customers to do their best to resolve the problem with the bank before they complain to the Central Bank…they should first contact the liaison office at their bank and wait for their response,” said the official, who declined to be named.

He said the Central Bank deals with most cases and finally informs the complainants about the result of its investigation.“If the case reaches court, then the Central Bank will not be able to help,” he said.

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