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Tanong ng Bayan: How to stir clear of credit card woes

It pays a lot to know the law, more so if it involves your credit card. Here are some salient points from the UAE Central Bank

• A minimum monthly salary of Dh5,000 is required to have a credit card for an annual income of Dh60,000.

• These cards may be provided against a pledged deposit of value not less than Dh60,000.

• Banks or finance companies should provide their credit card customers with a monthly statement of expenses, showing values of purchases and cash withdrawals. They should also immediately conduct an investigation should a customer challenges any expense item.

Personal loans

Article 2 (a) of the UAE Central Bank Regulations provides that to ensure that monthly installments deducted for repayment of a personal loan and resulting interest are kept in reasonable proportion to the customer’s income, the deductions from the salary or regular income must not exceed 50 percent pf the gross salary and any regular income from a defined and specific source at any time.

The maximum amount of personal consumer loan has been set at 20 times the salary or total income of the borrower; banks must make sure that this limit is not exceeded. The repayment period for this loan must not exceed 48 months.

Car loans

A car loan should be treated as separate from the personal consumer loan and should not exceed 80 percent of the value of the financed vehicle.

Source: Essential OFW Guide to UAE (Gulf Law)

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