A UAE resident has won a credit card dispute after the Abu Dhabi Global Market Courts rejected a bank’s attempt to rely on fine print in monthly statements to claim jurisdiction over the case.
The dispute stemmed from unpaid credit card dues involving an Abu Dhabi bank and cardholder Fahrudeen Karim Abubacker Syed Mohamed. The credit card was issued in 2004, years before the establishment of the Abu Dhabi Global Market (ADGM).
When the disagreement escalated, the bank filed a recovery case before the ADGM Small Claims Division. It argued that updates to the card’s “terms and conditions”, referenced in monthly electronic statements meant the customer had accepted ADGM as the forum for resolving disputes. The bank maintained that continued use of the card signified consent to the revised terms.
However, the customer’s legal team contended that he had never signed any amended agreement transferring jurisdiction to ADGM. They also argued that the card was issued and used in Dubai, and that simply continuing to use the card did not amount to agreeing to a significant contractual change.
The court sided with the cardholder, finding no clear evidence that he had explicitly agreed in writing to move disputes to ADGM. It ruled that routine references to updated terms in monthly statements were insufficient to establish consent to a major change such as court jurisdiction.
In its decision, the court emphasized that ADGM, as a special jurisdiction, can only hear disputes where both parties have expressly agreed in writing. Jurisdiction, it said, cannot be created through implication, silence, or unilateral amendments.
The court dismissed the bank’s claim for lack of jurisdiction and ordered it to pay the customer’s legal costs. It also referenced UAE Central Bank consumer protection rules requiring banks to clearly inform customers of significant changes to contractual terms.
The ruling reinforces that banks cannot rely on fine print or app notifications to alter key legal rights particularly when it comes to where disputes will be heard.
