US plan raises hopes for UAE cardholders
By Wafa Issa, Staff Reporter
Published: April 24, 2009, 22:41
Dubai: Abusive lending, especially that by credit card issuers, banks and financial institutions, which has forced millions of people worldwide into the 'plastic debt trap', has come under attack.
The US administration is introducing a bill in Congress to crack down on credit card issuers as the credit card industry itself pockets about $30 billion (Dh110.3 billion) in annual profits in the US.
Like elsewhere, people in the UAE and the GCC are also suffering from the trend which forced hundreds of thousands of residents to live on permanent debt or revolving credit.
Mohammad Omar, a 30-year-old sales engineer, said there are many rules and fees that one discovers only after getting a credit card and this needs to change. "I only got to know of a monthly credit card shield and insurance fees after I got my statement. This was not mentioned when I signed the contract," he said.
"I think more transparency is needed and I hope that Obama's step on credit cards will have a positive impact on credit card rules in the UAE," he added.
Maher Al Badawi, a 35-year-old general manager, said there is a lot of hidden information that the customer only knows about when the need arises.
"Credit card companies and banks must tell us the whole truth about the rules and not only the parts which would attract the customer and I think if things change in the US it will be reflected in the UAE," said Al Badawi.
However, Sameh Al Awany, a 29-year-old graphic designer, said the information he got is adequate and his bank was very transparent. "I do not think that banks hide information, but there are many people who are ignorant about the rules and regulations and they blame the banks."
By Wafa Issa, Staff Reporter
Published: April 24, 2009, 22:41
Dubai: Abusive lending, especially that by credit card issuers, banks and financial institutions, which has forced millions of people worldwide into the 'plastic debt trap', has come under attack.
The US administration is introducing a bill in Congress to crack down on credit card issuers as the credit card industry itself pockets about $30 billion (Dh110.3 billion) in annual profits in the US.
Like elsewhere, people in the UAE and the GCC are also suffering from the trend which forced hundreds of thousands of residents to live on permanent debt or revolving credit.
Mohammad Omar, a 30-year-old sales engineer, said there are many rules and fees that one discovers only after getting a credit card and this needs to change. "I only got to know of a monthly credit card shield and insurance fees after I got my statement. This was not mentioned when I signed the contract," he said.
"I think more transparency is needed and I hope that Obama's step on credit cards will have a positive impact on credit card rules in the UAE," he added.
Maher Al Badawi, a 35-year-old general manager, said there is a lot of hidden information that the customer only knows about when the need arises.
"Credit card companies and banks must tell us the whole truth about the rules and not only the parts which would attract the customer and I think if things change in the US it will be reflected in the UAE," said Al Badawi.
However, Sameh Al Awany, a 29-year-old graphic designer, said the information he got is adequate and his bank was very transparent. "I do not think that banks hide information, but there are many people who are ignorant about the rules and regulations and they blame the banks."
