Picture for illustrative purposes only. ARCHIVE

A UAE resident has successfully won a legal battle against a bank that continued deducting payments even after his loan was fully settled—resulting in an overpayment of Dh338,641. The Federal Court of Appeal in Fujairah ruled that the bank must return the overpaid amount to the customer. The man filed a lawsuit after discovering ongoing deductions from his salary and bank account, despite settling the original loan in full. The court found that the bank failed to stop deducting payments even after the loan was paid off, thereby violating fair banking practices. Evidence presented by the customer showed the amount of the overpayment, leading the court to order a full refund of the excess payment. The court ruled that the bank repay the man Dh338,641 plus 10 percent interest as well as pay him Dh10,000 in compensation for emotional and moral damages. Legal experts praised the ruling, saying it upholds consumer protection and sends a message to financial institutions to ensure transparent handling of loan repayments. ICA/Expat Media
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