“Central Bank” sets a ceiling on loan fees and services for individuals

Media iN – Abu Dhabi 19 June 2018 / WAM /
The Central Bank of UAE (CBE) has announced that it has amended “Annex 2” to “Banking Loan and Customer Services / 2011”. This amendment sets new limits on fees or commissions on individual customer services. On consumer-related banking services, such as home loans and credit card delays.
This amendment comes at a time when the Central Bank is strengthening its role in monitoring and supervising the banking sector in the UAE. These limits have been established to comply with all the principles of consumer protection and to ensure that they receive services at a high level of transparency, fairness and reasonable prices.
The central bank indicated that banks and finance companies were expected to have appropriate procedures for product clearance, including a check of the basis for charging fees and, as in many cases, charges lower than specified ceilings.
He stressed that the application of the maximum fee comes as a means of protecting consumers against unfair and unfair practices that may be exposed to them, including the use of enterprises to limit the fees when the actual costs are lower. In this case, banks will have to justify increasing their costs and thus increase fees, Do not hesitate to report any non-compliance with the new amendments they may be exposed to during their dealings with banks and finance companies.
The Central Bank noted that it had held prior consultations with banks on the adjustment of the maximum fees, praising their positive reaction.
The Central Bank issued instructions to banks and finance companies to announce the new maximum limits for fees on their websites on the Internet.