Banks operating in the country have agreed with employers to refuse to write to the payment of the salary of the client-borrower, confirming instead an obligation for employers to not transfer the salary to another bank without obtaining consent from the lending bank. This occurred in response to a refusal to withhold compensation for the termination of work in the case of the client's transition to a new workplace.
A source from the banking sector confirmed that "some banks have fulfilled the agreements and have contracted with multiple employers, especially government entities and including them in their lists, while other banks are preparing to sign the same contracts". This was stated in response to a complaint that appeared in the publication "Emirates Today" from clients who complained that their banks, with which they work, withhold compensation for the end of the working process and require a letter regarding the payment of salary, and not the breakdown of the salary, to pay off their debts.
They confirmed that they provided all necessary documents confirming the start of work, the current contract, and documents for the new workplace, excluding the letter regarding the salary transfer to the bank. They noted that their salary had already been transferred to their bank account in the lending bank, however, one bank blocked the monthly salary of one of the clients under the pretext of payment for a personal loan, although the new salary is higher, and the workplace to which he moved was included in the bank's list.
Responding to this, a responsible source declared: "The letter regarding the salary transfer implies an undeniable obligation of the bank to ensure itself the right to compensation for the termination of the client's work. Problems arose due to this. Hence, the majority of employers have contracted with banks regarding the necessity of agreements and sending postal notifications to the bank, confirming the ban on the client's salary transfer to another bank without obtaining written consent, given the refusal to withhold its compensation for the termination of work and its part, depending on each bank's internal policy".
It was noted that the Union of Banks of the UAE informed "Emirates Today" at the beginning of last year that the retention of clients' ability to pay off credit installments when transitioning to a new workplace without withholding compensation for the termination of working time depends on the submission of a letter regarding the salary transfer to the new workplace to which he moved, emphasizing the necessity for the bank to inform the client about submitting a resignation and transitioning to a new workplace before, not after, the resignation.
The Union of Banks explained then that clients facing withheld compensation for the termination of work usually do not comply with the bank's requirements, providing evidence of transitioning to a new workplace and also a letter with the salary transfer from the previous workplace in the same bank, from which the credit or financing was obtained, emphasizing that in such cases, banks tend to withhold the entire amount of compensation for the termination of the working day, as well as a rejection of the credit agreement, i.e., the absence of repayment extensions that were in the previous workplace of the client, but the necessity of clearing the debt on the credit. The salary of the client is usually the sole guarantee for personal credit in most cases, therefore, the letter regarding the salary transfer from the new workplace is an important element that should be considered by clients.
