A panel of the Federal National Council of the United Arab Emirates, one of the nation’s five authorities, recently said that the credit card fees and interest rates charged by local banks are too high.
Ali Al Nuaimi, the panel’s coordinator, said that the nation’s 51 banks were at fault for failing to fully clarify and explain the services to clients, Emirates 24/7 reports.
“There is an imperative need to re-organize the credit card market in the UAE under the supervision of the Central Bank,” Al Nuaimi said, according to Emirates 24/7. “The rates on these cards and the profits made by the banks are considered too high compared with those in nearby countries and the global market.”
Al Nuaimi said that the Central Bank responsible for controlling personal loans should take action regarding the credit card industry.
“The Central Bank has succeeded in curbing violations by banks in personal lending and should intervene urgently to control the credit card market,” Al Nuaimi said, Emirates 24/7 reports.
Sultan al Suwaidi, the governor of the UAE’s Central Bank, said that credit card services are currently being reviewed but did not say whether any new rules would be issued to govern the industry.