Questions & Answers
Filing a case against a bank for violating an agreement to reduce the interest rate
Hi,
I have a mortgage with a bank in Dubai. I renegotiated the interest rate with them in DEC 2018 to 4.15%. I discovered, in Jan 2020, that the bank had never amended my interest rate to 4.15% but was instead charging 7.75%. This bank has never ever sent me a statement of my mortgage.
I have been in discussion with them ever since but they are refusing to abide by the terms of that signed agreement which I have in my possession.
I want them to refund me the amount that I have been overcharged over the past 15 months. They are instead offering me a 3.99% rate for the next 3 years.
I have filed a complaint with the Central Bank, they have not replied to the Central Bank's query in the 14 working day period. The bank has told me that I can call back on Sunday to see if they have replied.
How can I get this bank to honor the agreement and refund me for their mistake? It seems that there is no accountability expected from them and I'm bearing a heavy financial burden as a result.

Dear questioner,
Your best choice now is to send a legal notice to the bank to reserve your right to claim the collected amount above the agreed rate.
Do not file a case now but wait till the time where the amount collected from you is worth the remaining amount (EMI).
We can help you to draft the legal notice and send it to the bank and advise you on the timing to file your case to ensure that your case is settled with your account forever. If you file a case today and win, you will still need to file another case at the end of the mortgage.
Best Regards,
Mohamed Noureldin
Legal Consultant (Licensed in Dubai)
For further inquiries, kindly contact us via phone or email.