- City Fajr Shuruq Duhr Asr Magrib Isha
- Dubai 05:28 06:42 12:35 15:52 18:22 19:36
Will the UAE Central Bank intervene to create more transparency in the mortgage and ensure rights of clients are protected?
The above issues came to light when a client who had availed mortgage from a bank filed a complaint with the UAE Central Bank alleging that the bank did not register the units in his name despite him paying the premiums for four years.
The client also alleged that the bank asked him to refund the security (guarantee) cheques and that the bank issued an ultimatum asking him to pay Dh9 million - the value of the cheque within eight days – or face legal action.
Atul Ashook Dhawan has taken his case to the Central Bank. (Supplied)
The client applied for a loan in 2011 to finance his purchase of two housing units – one in Motor City (valued at Dh2,640,462) and the second unit in Uptown Mirdif (valued at Dh1,891,675).
As per the agreement signed between the bank and him - which included interest rates, fees and delivery dates - the bank was obliged to complete the registration process of the real estate units with the Dubai land Department (DLD) in accordance Central Bank rules.
Also, according to the agreement between the bank and the client, the bank requested him to submit (security) guarantee cheques to complete the agreement.
The client, however, confirmed that though he paid installments regularly for the past four years, the handover of the units and the registration process (where the units should be transferred into his name from that of the developer) were not done yet.
The client said that he sent a formal warning to the bank on February 19, demanding termination of proceedings and registration of the property. On February 22, he filed a complaint with the Central Bank, requesting it to intervene and find a solution to his issue.
The client alleged that he was shocked to receive a notice from the bank on March 1, asking him to refund the security cheques and threatening to take him to the court and face jail in the event of non-payment.
The client wonders if the bank can use guarantee cheques when premiums are paid regularly and why the Central Bank doesn’t intervene and stop such practices, which allegedly violate banking norms and mortgage market rules.
The client alleges that he is yet to hear from the Central Bank as regards the case - registered under 2638/2015/OL and 2640/2015/OL.
Follow Emirates 24|7 on Google News.