The UAE Central Bank’s recent overhaul of bank fees sees some important charges being capped for the first time, while some will go up and others down.
Amongst those being set for the first time are credit card fees. The limit on late payments is set at AED 230, while the card replacement charge can be AED 75. Whether or not that’s more than you would currently pay depends, of course, on which bank you’re with.
The penalty on late mortgage payments is also being capped for the first time. Banks will be able to charge you a seemingly high AED 700 if you fall behind on a payment. However, given there was no cap before, this may be less than what some people were previously paying.
The early repayment penalty on mortgages is now capped at 3% of the outstanding amount. And a mortgage liability letter will cost up to AED 85, while a non-objection certificate (NOC) will cost a maximum of AED 150.
For anyone with a car loan, the maximum late payment penalty increases to AED 500 from AED 200.
For personal accounts, the price of a liability letter for government departments and other banks will go down, from AED 100 to AED 60.
Last week, the UAE Central Bank (CBUAE) announced its review of retail bank fees and plans to take a more active role in supervision of the sector.