Abu Dhabi Commercial Court Absolves Customer of Dh200,000 Credit Card Debt

A man who discovered that a credit card had been fraudulently issued in his name -- leaving him facing alleged debts exceeding Dh200,000 -- has been fully cleared of responsibility by the Abu Dhabi Commercial Court after judges found serious lapses in the bank’s verification procedures.

The man became aware of the card only after receiving a call from a bank employee demanding payment of Dh165,700 in outstanding charges. Subsequent investigations revealed that an impersonator had forged his signature, opened an account and obtained a credit card with the help of a bank employee who falsely confirmed the customer’s presence during the application process.

Criminal proceedings against the impersonator later resulted in a conviction. However, the civil court focused on the bank’s role in facilitating the fraud, citing “negligence and a lack of professional vigilance” by its staff.

The court noted that the bank failed to provide a complete account-opening application or any valid service agreement bearing the customer’s signature. A court-appointed expert further concluded that the account and transactions were processed without even the most basic safeguards required for financial operations.

Based on these findings, the court ruled that the man bore no responsibility for the account or the disputed Dh200,527 in charges. It ordered the bank to cancel all related claims and to compensate him for both material and reputational damage, including harm caused to his credit record. The bank was also directed to cover court fees and legal costs.