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Taking action against a bank for freezing the EOSB without consent

Good morning,

I work for the MOE. I changed the emirate and they paid out my End of Service Benefit.

My salary is still the same and I am still employed by the MOE. My bank put a freeze on my EOSB and subsequently used it to pay down my loan and credit card.

Their reason was that my debt ratio was too high. I did not give them permission to do that but they did it anyway. I have never been late in paying them and I have been a customer since 2016.

My question is, can the bank legally do that?

Do I have to file a case against them?

Also, how to stop the bank from taking my entire salary to pay down their debt if they can take my EOSB even though I am still working with the same company; with the same salary being deposited into the bank?

Please advise!

Nicole Shroff

Ansh Legal

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20 Feb 2020, 06:45

You would have agreed to set off your outstanding amounts in the terms and conditions that you signed when you opened the account with the bank.

However, the bank has no right to set off unless you have defaulted on your payments.

You can send them a legal notice stating that you will file a case against them for claiming the amount back along with damages to include all the expenses you have incurred due to their actions.

20 Feb 2020, 09:11

I did not default at all. I have not even been late with them.

They stated that because my debt ratio with all debts including other banks is over 50%, they have the right to take my EOSB and apply it to the loans and credit card with the bank in order to bring my debt ratio down.

Now, how to stop them from taking my entire salary to lower my debts with them?

Again, I have NEVER been late with them and they didn't even work with me in terms of agreeing to give them half of the EOSB to be used to pay down the debt and I keep the other half.

They took the entire amount. I filed two complaints with the UAE Central Bank regarding this.

My question is how do I go about filing a legal claim against them?

Do I have a winnable case?

How much would it cost to file this legal claim?

Please advise!

20 Feb 2020, 10:24

You have a good case. A complaint with the Central Bank will not cost you anything and that should be sufficient to get the job done.

If it doesn't work then you will have to file a case in court which will cost court fees (6% of the claim amount in AUH and 5% in DXB) + translation costs + lawyer's fees from AED 8000 - 15000 + expert fees (AED 3000).

My suggestion would be to call the bank and threaten them that you are going to Central Bank and then the court.

The second time, send them an email. Third time, file a Central Bank complaint in writing, then a legal notice threatening to go to court (AED 500) and fourth time, file the case in court.

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