Court Orders Bank to Refund Customer After Unlawful Loan Deductions

A commercial court in Abu Dhabi has directed a bank to reimburse a customer Dh80,596 after an expert examination confirmed the lender had imposed unlawful additional interest on a loan. The bank has also been ordered to pay 3 per cent annual delay interest from the date the claim was filed until the full amount is settled.

According to court records, the customer filed a civil case demanding the return of Dh80,596, along with statutory interest and Dh20,000 in compensation. He argued that, despite consistently meeting his loan repayments, the bank had deducted sums that exceeded what was legally due — a discrepancy highlighted in a specialist financial expert’s report submitted to the court.

In its ruling, the court noted that the expert had conducted a thorough review of the loan account, determining that the claimant had paid Dh80,596 more than the actual outstanding balance. The court said it relied on the report as it was prepared by a qualified professional and aligned with recognised banking procedures.

The court found that the bank’s failure to refund the excess amount constituted a delay, making the customer eligible for compensatory interest. However, it dismissed the claim for an additional Dh20,000 in damages, stating there was no evidence of harm beyond the financial loss already addressed.

The judgment obliges the bank to repay the Dh80,596, pay 3 per cent annual delay interest, and cover legal costs and lawyers’ fees, while rejecting all other demands.

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