Its owners did not close it ... so they accumulated a "low balance" fee.
"Forgotten" bank accounts that cause dealers to be exposed to credit reports
Failure to close the bank account negatively affected clients' requests for financing. Archives
Dealers with banks confirmed that their credit reports with the Al-Etihad Credit Bureau showed the existence of "overdrafts" on bank accounts that they had not used for about two years, and that there were no transactions, withdrawals or deposits, after they transferred their salaries to other banks.
They explained to "Emirates Today" that they discovered, by chance, when applying for new financial financing, that their accounts were registered negatively in these banks, as a result of the accumulation of fees for the minimum monthly balance, confirming that they did not receive any calls or text messages from banks regarding the existence of a monthly discount on The account, or alert them to close the account as long as there is no movement on it for several months.
In turn, two bankers stressed the need to close bank accounts in the event that they are not used, or to transfer the salary from another bank, to avoid deducting the minimum balance fee of 25 dirhams per month, stressing that these amounts show the balance exposed at the Al-Etihad Credit Bureau, and affect the credit report and number Evaluation.
Customer complaints
In detail, the dealer (Ibrahim St.) said that he transferred his salary to a new bank several years ago, but he forgot to close his account in the first bank, believing that the process will be automatically carried out by the bank because there is no withdrawal or deposit movement on the account.
He pointed out that he was surprised that his credit report showed the existence of an overdraft of 2000 dirhams, which prompted him to contact the bank to inquire, to find out that there was an accumulation in the fee of the balance falling below the minimum permissible threshold of 3000 dirhams. Ibrahim confirmed that he had not received any call or text message from the bank stating that his bank account was negative, otherwise he would have closed it a long time ago.
In turn, the client (Faiza A.) said that her credit report showed an overdraft of 1500 dirhams, as a result of her forgetting to close an old bank account that she had not used for three years. And she confirmed that she did not receive any call or text messages from the bank during that period, asking the banks not to deduct fees without informing the customer, in order to correct any error or unintentional forgetting.
For his part, the trader (Muhammad A.A.) presented a similar case, explaining that he kept his bank account open, after transferring his salary to another bank, but he did not make any withdrawal or deposit movement on him for a long time, thinking that the bank would close the account on its own. : “I was surprised when applying for a credit report to take financing, that there was an overdraft from the old bank of 1800 dirhams, which is the fee for the balance falling below the minimum permissible limit.” Who deals with it.
Close the balance
In addition, the banker, Rami Fahmy, stressed the importance of customers paying attention to their bank accounts that they do not use, as a result of dealing with a new bank, as they must be closed completely as soon as dealing with the bank is stopped, to prevent the calculation of the minimum fee for the estimated balance of 25 dirhams per month.
He added that this fee accumulates monthly, and the customer’s balance appears negatively in his credit report, and also affects the ease of granting him new funds. He said, “Unfortunately, there are many dealers who keep the bank account open after stopping their dealings with banks and switching to another.”
Negative balances
For her part, the banking expert, Sheikha Al-Ali, said that banks do not send text messages by deducting a fee from the bank balance, unless it includes money, but if it is zero or negative, text messages are not sent, and therefore the discounted fees accumulate and appear in the customer's reports Credit, stressing the importance of the customer not forgetting his bank account without closing it, as long as he does not use it and does not need it. Al-Ali added: “Banks usually do not classify a bank account as (inactive) until after seven years have passed, and it remains open, so the dealers "Those who forget to close their accounts are prone to accumulating negative balances over time, and appear as an overdraft in their credit report."
The credit report
The banking expert, Sheikha Al-Ali, stressed the importance of not forgetting to close unused accounts, as it also carries the risks of exploiting them, pointing out that the fee for closing the account is only 100 dirhams, while leaving it open for a long time can cost its owner thousands of dirhams, in addition to Negative impact on the credit dealer's report
Banks do not classify the bank account as "inactive" until after seven years have passed.
Sheikha Al-Ali:
“Dealers who forget to close their bank accounts are vulnerable to accumulating negative balances over time.”
Ramy Fahmy:
"The fee for the minimum bank balance accumulates monthly, and the customer's balance appears negative in his credit report."