Most notably credit cards, personal finance and cars
Banks to adjust banking fees from next November
Banks compensate for credit card defaults by adjusting their fees to cover expenses.
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Amjad Nasr: “The fees for business banking services are not defined as a system, except for the mechanism of supply and demand and competition between banks.”
Banks raised late payment fees for credit cards from 200 dirhams to 236.25 dirhams.
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Individual customers and business owners said that they had received text messages stating that their banks had made adjustments to the fees for some banking services, whether online or traditional, and they will be effective on the first of next November.
According to those messages, copies of which "Emirates Today" received, these amendments included both electronic banking fees, investment deposits, credit card transactions, direct debits, personal financing, car financing and refinancing, overdrafts, and advance salary.
register fees
According to the messages, the banks kept the “merchant account” fees free, whether it was annual account maintenance, registration fees, or adding a user, but in return, they raised the fees for other business accounts by values ranging between 50 and 500 dirhams, so that the maximum fee for maintaining a business bank account (category of business) Premium online), for example, 1050 dirhams annually.
At the level of credit cards, annual fees were raised to values ranging between 25 and 150 dirhams, and the interest on purchases was raised from 3.25% to 3.49%.
Banks raised fees for late payment of credit cards from 200 dirhams to 236.25 dirhams.
Banks also raised the late payment fee for the car premium to 525 dirhams, depending on the value of the car.
Service fees
For his part, the banking expert, Amjad Nasr, said that “some banking services fees are predetermined in the personal loans system for individuals, and these can only be raised after obtaining a prior written approval from the Central Bank, while leaving the banks to determine interest rates or profits on loans and financing.” , according to market policy, and imposed by competition frameworks between banks, so there are no big differences in this item due to the intensity of competition.”
Nasr added that «the fees for business banking services, there is nothing to be determined as a system, except the mechanism of supply and demand and competition between banks, where it is left to each bank to determine the fee for its services according to the cost of its operational operations, but almost all banks support the (merchant) license by giving them free services to encourage entrepreneurs. of young people.”
And he indicated that “the customer has to return to the contract between him and the bank, whether with regard to credit cards or any other banking relationship, that binds him to the bank, to ascertain whether the bank has the right to raise fees or not, and whether he sends a notice, text messages, or advertisement on its official website.” Is it sufficient, or is the prior consent of the customer required?
He added, "Some banks are trying to compensate (the stumbles) that some customers face, especially in credit cards, by adjusting their fees to cover all operational expenses that are witnessing a rise due to high interest rates, and the consequent increase in the cost of deposits used in financing."
Nasr stressed that “the banks, due to the great competition in the local market, must study these decisions well, as well as review the market conditions, if they wish to maintain their share amid the competition of local and foreign banks to attract customers.”
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