FGB — auto renewal of insurance policy without my approval
In the month of May 2015, I was offered Quick Cash Loan from FGB for a period of 18 months. I was paying more than the mentioned EMI as my plans was to close the loan within a year. In the month of Sept 2015 I got a call from the insurance department offering an Insurance policy which I did not accept. As I was paying more than the required EMI amount, I did not check my statements and did not realize that this Insurance policy was added to my payments to be made. In the month of April 2016 when I called up the Customer Service Center for inquiring about pre-closing my loan I realize that FGB had added an insurance policy of AED 350.00. I even explained to them that if this was the case how come I did not receive any intimation in the form of a SMS and till date I do not have that LSP Policy but they refused to accept it. I preclosed that loan paying the preclosure charges of AED 100.00 and the balance amount. I was offered another Quick Cash Loan in the month of May 2016 and as I required it for personnel reasons I took this second loan. At the same time I was offered a LSP Insurance policy of AED 350.00 which I accepted and soon received a confirmation SMS and within a week received a policy by email. In the Oct 2016 statement a LSP Insurance policy was added to my payment as “LSP Renewal”. This was done without any intimation from the bank and without my consent and approval. I have spoken several times to the Customer Service Center (Service Request No – SR9024825) and they keep demanding that I pay the minimum payment of AED 100.00. After that I started receiving emails from a Vimla Tilokani (Consumer Collections & Recovery) to pay the “Overdue Payment of AED 100.00. I have very clearly stated in my replies back and several emails to Customer Service email id that this is not an “Overdue Payment” on my Loan but an amount that the bank is trying to take on LSP Insurance Policy under the pretext of renewal. And this is without my consent and approval. I have also informed them that I have a policy in force, Commencement date – 28 May 2016 up to 27 May 2017. But they refuse to accept any explanation. I have evn spoken to their collection officer Jatin Bassi and explained the entire issue. His words were, why cant you pay the AED 100.00. Just shows how desperate this bank is, even for a mere 100 dirhams that they will go to any extent to rob their so called valuable customers.
Now I have started receiving emails from their Team Leader Nishant Baindur threatening that they will black list my account, down grade my credit rating and cancel my credit amount. The Nov statement which I have received, they have charged me a late payment fee and also some additional bank service charges.
I have lodged a complaint with the Central Bank of UAE and waiting for them to take the necessary action.
If this is not extortion and robbery by a bank, then what can this be called?