Facing Issues with a Bank? You're Not Alone.
Almost every individual and business interact with banks—whether for loans, credit cards, overdraft facilities, investments, or daily transactions. Unfortunately, these relationships can become contentious. Disputes with banks often arise due to unauthorized fees, misapplied interest rates, breach of contract terms, refusal of credit facilities, or fraudulent transactions.
At FAKHER & CO, we specialize in representing clients—individuals and businesses alike—in complex banking disputes across the UAE. Our legal team understands the intricacies of banking operations and regulations and offers both litigation services and expert legal consultancy.
Common Types of Banking Disputes We Handle
Our firm regularly handles a wide range of disputes, including:
Unauthorized Interest Calculations
Particularly compound interest recalculated on already accrued interest, which can be challenged in court as unlawful.
Unfair or Hidden Charges
Banks often impose periodic fines or penalties that are not aligned with the terms of the original agreement.
Fraudulent Transactions
Including unauthorized cheque withdrawals or forged instruments, where banks may be held liable.
Rejection of Financing Facilities
Even after formal approval, refusal to release funds can constitute a breach of agreement.
Interest Rate Adjustments without Consent
Particularly on personal loans or credit cards, where courts often reject unilateral changes.
Key Issues in Banking Litigation
Compound Interest Calculations
Banks sometimes recalculate interest on top of accumulated interest, leading to exorbitant amounts payable by clients. Courts in the UAE consider this practice unfair unless explicitly agreed upon.
Bank Liability in Fraud Cases
Even when fraud is difficult to detect, such as in the case of counterfeit cheques, banks may still be held responsible unless serious negligence is proven on the part of the account holder.
Unauthorized Interest Adjustments
Though many bank contracts include a clause allowing banks to revise interest rates, UAE courts often rule this invalid without explicit, informed consent from the client at the time of adjustment.
Late Payment Fines
Banks may apply fines in addition to interest on overdue payments. However, these fines can be challenged and reduced based on court discretion, especially where the charges are disproportionate or vaguely applied.
Amicable Settlement vs Litigation
While amicable settlement is often the preferred approach to reduce cost and time, many banks are hesitant to settle when they owe funds to the client. Unlike other regulated sectors (insurance, health, consumer protection), there is currently no independent regulatory body that adjudicates banking disputes before court proceedings.
Therefore, legal action is often required. Our firm steps in with strategic litigation plans to protect your rights and challenge unlawful banking practices.
Why Choose FAKHER & CO for Banking Disputes?
Extensive Experience in UAE Banking Law
Thorough Case Review and Document Analysis
Strong Representation in Banking Litigation
Effective Negotiation for Amicable Resolutions
Client-First Focus and Confidential Consultations
Whether you are dealing with a personal banking issue or a commercial facility dispute, our lawyers offer clear, actionable legal advice—and if necessary, aggressive courtroom representation.
Secure Your Financial Rights Today
At FAKHER & CO, we believe that your financial well-being deserves uncompromised protection. Our experienced legal team is here to safeguard your rights, recover misappropriated funds, and challenge unfair practices—with diligence, integrity, and professional excellence.