First Gulf Bank [FGB] – balance transfer – illegal charges for early loan settlement

First Gulf Bank [FGB] Reviews & Complaints

Reported By: Justbull

Contact information:
First Gulf Bank [FGB]
Dubai, United Arab Emirates
I have recently attempted to cancel my balance transfer plan on my credit card with FGB.

I first visited the branch with a cheque to cancel my card but they provided me clearly false information that I had to apply for a liability letter and couldn’t settle with the cheque. This was clearly false as after depositing the cheque in the deopsit machines at the same bank it was processed and reflected a few dats later.

Once I settled the outstanding balance I was expecting to have to pay a small cancellation charge as I has with Emirates NBD previously. However I was informed that in addition to settling the pricinciple I was required to settle all the interest that would become due over the entire remaining period of 31 months, have only gone through 5 months of the 36 month period. I laid a complaint as to whether I had ever been informed as to that term.

I received a call back from the complaints department who informed me that I had agreed to the terms with the sales operative on the original call but they were unwilling to provide me a digital copy of the call for me to review it myself. They were basically saying that I was committed to terms and conditions based on a phone call but were unwilling to provide any evidence and instead told me I should trust the bank, the same one trying to charge me interest for periods that I was not going to have any principle balance due to them, and the impartiality of the complaints department.

Firstly I see no reason why they wouldn’t share this information if they are an institution with any integrity and transparency which a bank should be. In addition the terms they are saying I agreed to are even legal. As far as I can tell based on the Appendix No.2 of the Regulation No. 29/2011 Regarding Bank Loans & Services issued by the Central Bank of UAE states: “Early settlement from same bank loans is 1 per cent of the remaining balance of loan.” If that is the case then how can they claim they can require all the outstanding interest?

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