Calculate compound interest for a loan
Obliging a bank to refund 80,000 dirhams to a customer
The court ruled to take measures to write off the mortgage in the registry of the mortgaged property.
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The Abu Dhabi Commercial Court has ruled that a bank must pay a customer an amount of 80 thousand dirhams from which she had received compound interest on a loan she had obtained, and the court obliged the bank to return the amount for violating the terms of the loan contract concluded between them.
In the details, a client filed a lawsuit against a bank, in which she demanded that a specialized expert be assigned to conduct accounting with the defendant bank, and for the expert to undertake the tasks of indicating the amounts paid from a loan she had obtained, the amounts due and excluding the compound interest.
She indicated that it was found to her, through auditing and follow-up procedures for the sums paid, that the bank would get an additional 80,000 dirhams, exceeding the value of interest agreed upon in the contract concluded between them, based on the introduction of compound interest.
The plaintiff’s defense, lawyer Haji Al-Balushi, explained that his client obtained from the bank (the defendant) a bank facility, which is a loan guaranteed by a mortgage of real estate insurance in the amount of four million and 450 thousand dirhams for the construction of eight villas, by guaranteeing the mortgage of those villas as an insurance mortgage, indicating that the bank accounts for benefits A vehicle on the loan that was not agreed upon, and she also obtained from his client unjustly sums of money, and the ruling demanded her to oblige the bank to return 80 thousand dirhams.
The report of the banking expert delegated by the court showed that the plaintiff obtained a facility from the bank in the form of a loan, and by recalculating the simple interest on the loan and excluding the vehicle from it at the agreed interest rates, directing the payments to pay the interest in an up-to-date basis and settling the accounts, the experience showed that the stalker was responsible for the bank in favor of the complainant It is 80 thousand dirhams, as the plaintiff’s attorney submitted a memorandum in which it obligated the bank to pay its client the amount, prove the expiration of the loan debt by repayment and the ruling to release the mortgage of the villas, while the bank asked to delegate another expert to examine the objections.
The court clarified in the merits of its ruling, that the documents and the report of the accounting expert, that the bank had fulfilled its right from the complainant regarding the loan, and consequently the expiration of the debt related to the loan contract, which necessitates the release of the mortgage imposed on the residential villas, indicating at the same time that the stalker of the bank owed the complainant According to the expert's report, it is 80,000 dirhams.
The court ruled to oblige the defendant "the bank" to pay the plaintiff 80 thousand dirhams and to authorize the plaintiff to take measures to write off the mortgage in the mortgaged property registry, while obliging the defendant to pay the fees and the lawsuit fees.
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