Bank customers in the UAE have faced long-term denials of financing, sometimes for over a year or two, after being reported to the Emirates Credit Information (ECI) company for stopping payments for more than 180 days. This places them on the «Write Off» list, automatically lowering their credit rating to the minimum. They confirmed to «Emirates Today» that these practices have disrupted their businesses and denied them access to any emergency financing, calling for clear regulations that compel banks to remove a customer's name from the «Write Off» list if the reasons for inclusion no longer exist or if the inclusion was initially erroneous.
They pointed out that their credit scores dropped sharply despite not evading payments or being involved in any banking violations. One customer described a clean credit record and called this approach a punitive tool against the borrower.
The term «Write Off» refers to the write-off of bank debts due to a customer's financial default, appearing in ECI reports and preventing the customer from obtaining any financing for a specified period.
In detail, a customer at a local bank, S.M., said he fell into a cycle of problems with his bank since 2021. He was pressured by a bank sales representative to get a «lifetime free» credit card, which he agreed to after hesitation, assured of his good credit rating. He used the card for only one month, paid the full amount on time, and then stopped using it entirely. After a year, he was surprised by a demand from the bank's collection department to pay renewal fees of nearly 450 dirhams. He requested the card be closed immediately and was promised the fees would be waived, which they were. The surprise came a year later when he discovered the credit card was in debt for about 2600 dirhams in renewal fees and late penalties, despite never using it. When he requested to close it, he was referred to the legal department and promised a review, but received no further response. He was shocked by the existence of fees on a card that was initially advertised as free, and then by the bank's promise to close it, giving the impression the problem was solved. The shock was greater when he discovered while dealing with another bank that he was on the Write Off list, which restricted his credit rating and prevented him from obtaining any new financing.
S.M. considered this a punitive measure taken against him without prior notice, despite his «clean» file with banks, as he has owned and managed several companies in the local market since 2013 and had never defaulted or misused any banking products. This action left him in a «banking paralysis.» He added that the problem with some bank employees is that they are persistent and make repeated calls when selling their products, but in case of any problem, they treat the customer unacceptably.
In another case, a customer at another bank said she obtained a personal loan and was paying the monthly installments regularly, even after losing her job. She remained committed for months until she faced a temporary setback. She later found a new job and requested a restructuring of the loan amount, to which the bank agreed to higher installments to settle the obligation quickly, and she committed to that as well. However, to her surprise, her bank account was closed, and the balance showed as zero via the bank's electronic app, without a clear explanation. Despite her repeated attempts to communicate and continue payments, the restrictions expanded to include closing the bank account and stopping banking services.
She added that after several months, she tried to take advantage of an attractive offer to buy a car, but the request was rejected due to a low credit rating. It was then that she realized her status on the Write Off list was still active since 2024, despite the personal loan being restructured. She noted that some banks do not distinguish between a «temporary default» due to human circumstances and bad faith or intentional evasion.
In turn, customer A.M. said that a bank she dealt with placed her on the «Write Off» list for two years due to a lawsuit she filed against the bank over a credit card. She added that she won the lawsuit, and the court ordered the bank to pay compensation. Despite this, the bank informed ECI of her non-payment for over 180 days (while the case was in court). After resolving the issue through communication with ECI and a full year later, the bank again placed her on the Write Off list through a new employee, which required her to again turn to ECI for correction. She confirmed that during that period, she could not obtain any financing, and her credit rating number dropped to the lowest level. She believed the bank used «Write Off» as a punitive method because she resorted to the commercial court to prove her right to the additional amounts she paid to the bank for the credit card.
On his part, banking expert Ahmed Arafat told «Emirates Today»: «Some customers default on paying their phone bills, housing loan installments, or other obligations to banks for more than a month. Here, they are contacted by collection departments, and if there is no response, their obligations are listed as a defaulting customer (Write Off) with the credit information company, according to the specified period, which is usually from 90 to 180 days. Therefore, it is very important that the customer commits to paying their installments on the specified date and checks their credit report periodically, even every six months.»
In response to a question about updating data and removing a customer's name from the list, Arafat explained: «Modifying a customer's status from Write Off and raising their credit rating requires updating the data with ECI. This process is done by the bank after paying the arrears, or the customer can request it directly if they have actually paid, and the bank is delayed in updating, which usually takes several months.» He added: «If there is an error in the customer's data that caused their Write Off status, they can contact the bank through the customer service center or fill out a data correction request via the ECI app, which in turn contacts the bank for correction.» He pointed out that «some banks look only at the credit score number, so if it is low, they do not look for the reason and reject the customer's request directly, while other banks delve into the details of the delay.» He advised customers to follow their credit status promptly and correct any defaults if they want to deal with banks smoothly.
On his side, banker Mustafa Ahmed said: «Banks reject customer requests as long as they find any of their banking loans or all of them in the red in their credit report, which means they are in a Write Off situation, i.e., defaulting on payment.» He stressed that «banks usually look for a committed customer who is able to pay their installments on time.» He added: «Banks are subject to inspection and regulatory procedures that require them to be cautious if the customer is in default or has overdue dues, and this is the bank's natural right, but sometimes errors occur in the credit report due to delays in updating data. Here, the customer can demand an update either directly from the bank or through the ECI app.»
Ahmed confirmed that a customer's financing reaching the «Write Off» stage, or a complete default on payment, directly lowers their credit rating to the minimum. He said: «Unfortunately, some customers underestimate the matter and only realize its importance when they need to deal with the bank for an emergency, to request financing or a credit card or other banking products.»
«Emirates Credit Information» stated that the Central Bank has set specific procedures for the issue of banks placing customers «Write Off», but it is commonly understood that it is not the customer themselves who is on the list, but the financing contract whose owner has stopped paying for 180 days, i.e., six months. The company added to «Emirates Today»: «Any notification of an error by banks to Emirates Credit Information can be corrected via the new smart app, which was recently launched, by selecting the (data correction) service, to be immediately in contact with the data-supplying bank to correct the error and remove the mistake.» «Emirates Credit Information» stressed the necessity of reviewing the credit report periodically to be aware of any developments in it, and then the possibility of repairing any errors in it.
