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It’s an honour to be on The National’s Debt Panel – not quite a pleasure, because the stories are usually painful and we have to find different ways to say the same thing each time.
Everything in these real-life stories of debt, uncooperative banks, job loss and pain is fully preventable. That’s why spreading basic financial literacy is so important.
This week’s Debt Panel touched on many themes that I rant about regularly, so I wanted to share it with you:
– Not having just one banking relationship where you live
– Not having a joint account
– Card fraud and phishing scams
– Being careful how you block cards
– Navigating disagreements with your bank etc.
Learn from these stories so they don’t happen become your reality.
My wife was recently expecting a delivery and received a text informing her that she had to pay an additional Dh12 customer fee. She clicked on the link and entered her credit card details, but when she was asked for the PIN, she became suspicious and alerted our bank immediately.
In response, the bank froze my wife’s credit card, which is a supplementary card to mine as the main account holder. It has a limit of Dh30,000. Thankfully, the scammers were unable to gain access to the account.
However, the bank also wanted to freeze our joint current account and both debit cards, which we objected to as we had a credit card payment due in two days. If this was necessary, then why didn’t they freeze the main credit card?
To renew the blocked cards, unfreeze the current account and regain access to internet banking, we were told that we had to sign an indemnity form. I refused to sign it due to its unreasonable terms, which included a point that I would undertake to sign and enact any document that the bank presents to me in the future. Several bank representatives told me that it was standard, had been drawn up by the bank’s lawyers and could not be amended.
I told the bank that I would remove my deposits and open up an account elsewhere, but they said that was not possible as the account was still frozen. Under duress, I signed the indemnity, which had been slightly amended by the bank to remove reference to my current account. Ironically, the scammers would have had an opportunity to steal Dh30,000 from my credit card, but the bank was now taking control of the Dh350,000 in my current account.
When I requested a copy of the signed indemnity form, the bank refused to give it to me despite it being a legally binding document. I have been told by the bank that it is likely my complaint will be rejected as they followed procedure. But I would argue that their procedure is wrong and I was pressured to sign the indemnity form to gain access to my money. What rights do I have and can I get the indemnity form withdrawn? CB, Dubai
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My response:
Your experience is an important warning to us all. There are many entities out there, not all of them private, that are using texts or emails to get access to our information. Either they persuade you to enter your card details or click on a link that downloads malware onto your device. The package delivery ruse is very common. None of us should provide card details or click on any link unless we are 100 per cent sure it is legitimate.
I assume that your wife did not enter the PIN, so the potential damage was limited. If you do feel your card is compromised, you can request a temporary block on your card – credit cards are safer than debit cards because the money does not leave your account immediately.
Your story suggests it might be prudent not to reveal too many details initially about why you want a block, which will enable you to cancel it later. The freezing of your current account seems like a big over-reaction by the bank as it could have just put a Dh30,000 hold on your current account.
Your experience is an important warning to us all. There are many entities out there, not all of them private, that are using texts or emails to get access to our information. Either they persuade you to enter your card details or click on a link that downloads malware onto your device. The package delivery ruse is very common. None of us should provide card details or click on any link unless we are 100 per cent sure it is legitimate.
I assume that your wife did not enter the PIN, so the potential damage was limited. If you do feel your card is compromised, you can request a temporary block on your card – credit cards are safer than debit cards because the money does not leave your account immediately.
Your story suggests it might be prudent not to reveal too many details initially about why you want a block, which will enable you to cancel it later. The freezing of your current account seems like a big over-reaction by the bank as it could have just put a Dh30,000 hold on your current account.
Do you have any questions or comments? Share your thoughts in the Comment section below…
Join my 6-month Financial Transformation Program this September
After helping tens of thousands of expats to plan, save & invest their own money with confidence, I have created this program combining private coaching, online courses, group learning, accountability and community. It has everything you need to know, the flexibility to suit your experience and life schedule, plus the support to make sure you actually take action towards a great financial future. (If you “don’t have 6 months” you can speed through as fast as you like! No limits.)
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