Banks specializing in an item that allows the loan to retreat within 5 days of “signing”

Local banks began allocating a clause in the contracts signed by the customer, allowing him to back away from financing and change his opinion even after the signing of the contract, during a period of five days, provided that the amount of the financing or part of it is not used.

A banker official told «Emirates Today», who preferred not to be named: “It was noticed that the customers’ complaints are repeated about not allowing them to refer to obtaining a personal loan or financing the car, on the pretext that they signed the contract, despite the illegality of this procedure, given the instructions of the central bank, and the guidelines of the customer’s granting for a period of five working days starting from the date of signing the contract, to refer to it, provided that the amount of the loan is not disposed of From him ».

The source added that a number of banks have already included a clause in the financing contract that allows decline, and shows its conditions, while other banks did not do so, pointing out that the recent banks acquire the major share of relevant complaints.

The source continued: “Some employees delay fulfilling the customer’s request after signing the financing contract, to ensure the achievement of his (Targat),” stressing the importance of the customer to know his rights and submit a complaint to the bank’s management, after documenting it with a written request stating that he does not want to complete bank financing.

The source pointed out that what applies to the personal loan also applies to the rest of the banking products such as the financing of the vehicle, as long as the customer has not received, and the same applies to the incomplete credit cards and real estate financing.

The source continued: “It is better to include all banks for the item (Return in the contract), in order to prevent repeated problems with the dealers.”

In response to a question about the reasons that may pay the customer, the financing request to retreat from the contract, the source said: “Sometimes emergency circumstances occur, or the customer reviews himself, and discovers his inability to pay, or any dispute occurs immediately after the signature, and here he is entitled to return in the contract according to what is called a banking period or (Cooling Off Period).

He added: «The customer must send a message to the bank, or fill out the form (request for decline), which includes the entire name, the identity number, the bank account number, and the funding application number, if any, and requests to retreat from funding according to the instructions of the central bank and the consumer protection system issued by it, during the permission period (five days), without bearing any fees or benefits, except for the direct costs that the bank may be incurred such as fees Credit inquiries or others.

He continued: «The customer must indicate in his letter that he has not withdrawn any amount of funding until its date, and he wants to confirm the cancellation of the contract, and to recover any fees or amounts deducted, and requests that he be provided with a written notice stating that his request is implemented.

• The customer must send a message to the bank or fill in the “request for a retreat” form for the loan.