It’s good news for homeowners and anyone with a credit card…
Have you ever felt confused by all the fees attached to your bank account? We don’t blame you. Between all the interest rates, car repayments and hidden charges, it can all be a bit much.
Thankfully, the UAE Central Bank has announced that it will be placing new caps on the certain fees that banks and other lenders can charge their customers in the UAE – hopefully making things a little less overwhelming.
In an official statement regarding the new rules, it was specified that the new maximum limits or ‘fee caps’ would specifically apply to services such as home loans and late fees for credit cards.
Whereas previously banks could charge the maximum amount for a fee right out of the gate, they have now been instructed to stick to a standardised fee structure and, if applicable, charge lower fees than those outlined in the caps. Hooray for more transparency!
The central bank says that the fee caps are designed to “protect consumers from anti-competitive and unfair practices” and all banks and finance companies will be required to display the relevant information on their websites.
While there wasn’t any specific information given on what the actual amounts of the fee caps are, we can surmise that the central bank taking a more active role in supervising the banking sector can only be a positive thing for everyone involved.