An Abu Dhabi court ordered a bank to refund AED 92,854 to a customer, clear his credit card balance, close the card account and issue a debt clearance certificate after the bank failed to provide documents proving that the customer had agreed to the interest rates and fees charged.

The customer applied for financing from the bank in 2013 and received a credit card with a limit of AED 50,000. He told the court that he had repaid all amounts owed and had even paid more than his outstanding debt, but the bank continued to demand payment.

A court-appointed banking expert reviewed the card statements. The bank was unable to provide the original card application or documents specifying the agreed interest rates and fees, saying the records had been destroyed in a fire at the document storage facility.

The expert recalculated the account using the statutory simple interest rate, excluding compound interest and fees that the bank could not prove the customer had agreed to. The review found total withdrawals of AED 1.403 million and total customer payments of AED 1.605 million. After the expert’s adjustments, AED 92,854 was found to be due to the customer.

The court accepted the expert’s report, noting that the bank had provided no evidence to challenge its findings. In addition to refunding the amount, the bank must pay annual interest of 3 per cent from the date the lawsuit was filed until payment, provided the total interest does not exceed the principal amount.

The bank was also ordered to pay court costs and AED 200 in legal fees, while the customer’s other claims were dismissed.

The UAE Central Bank’s Consumer Protection Standards also require financial institutions to clearly disclose fees and how they are calculated, and to change contractual terms only with transparent disclosure and the customer’s explicit consent.