Court Orders Bank to Refund Customer Dh134,400 and Pay Dh35,000 in Damages

The Abu Dhabi Court for Family, Civil and Administrative Cases has ordered a bank and several individuals to repay Dh134,400 to a woman whose account was unlawfully accessed, along with Dh35,000 in compensation for financial and emotional harm.

 

The ruling came after the court determined that the bank’s security systems were inadequate, allowing the fraudulent withdrawals despite no fault on the part of the complainant.

 

Court records showed the woman had initially sought the recovery of her funds and Dh285,000 in damages for financial loss, emotional distress, legal fees, and court costs. The individuals involved had already been convicted in a criminal case and deported for misusing her bank card.

 

In its judgment, the court underscored that “no one may take another’s money without lawful cause.” It found that the bank shared responsibility for the losses and awarded the woman Dh20,000 for financial damages and Dh15,000 for moral damages, acknowledging the impact on her finances and dignity.

 

The decision reflects several key provisions in UAE law:

 

• Civil Transactions Law (Federal Law No. 5 of 1985)

  • Article 282 holds that anyone causing harm to another is obliged to compensate the victim.

    • Article 292 entitles victims to damages for both financial and emotional harm.

• Penal Code (Federal Decree-Law No. 31 of 2021)

  • Misusing another person’s bank card and withdrawing money without consent constitutes theft or fraud, carrying criminal penalties. The defendants in this case were convicted and deported under these provisions.

• UAE Central Bank Consumer Protection Regulations (2021)

  • Banks are legally required to maintain robust systems to safeguard customer accounts. Failure to do so can result in liability, even where third parties commit the fraud.

 

By combining these legal pillars, the court affirmed that responsibility for the unlawful withdrawals did not rest solely on the offenders, but also on the bank for failing to protect its customer.

 

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