Borrower rights

Borrower rights in the UAE

The Central Bank rules that protect you when you borrow, and what to do when a lender breaks them. Start with the consumer protection summary, or go straight to making a complaint.

When you borrow from a UAE bank or finance company, the Central Bank’s Consumer Protection Regulation, in force since 25 December 2020, and its mandatory Consumer Protection Standards set what the lender must tell you, how it must treat you and how it must handle a complaint. If a lender does not resolve your complaint, you can take it to Sanadak, the independent ombudsman unit, free of charge.

The rules in one place

The Regulation and the Standards apply to all financial institutions licensed by the Central Bank. The Standards are enforceable in the same way as the Regulation. On fees, lenders may not charge anything outside the Central Bank’s fee table without its written approval.

Five rights to know before you sign

  1. A Key Facts Statement first. The lender must give you a Key Facts Statement before the contract, and you sign to confirm you received it.
  2. The full yearly cost. Lenders must disclose the annual percentage rate (APR), which includes interest or profit and other fees. See reading the APR.
  3. Time to change your mind. After signing a credit contract you have 5 complete business days to withdraw without undue cost.
  4. Insurance is your choice. Loans and insurance are separate products: you choose whether to pay for insurance over the loan term or upfront, and the bank must explain this and get your agreement before charging for it.
  5. No surprise card limits. A credit card limit cannot be raised without a new credit bureau check and your express consent.

Cooling-off period

5 business days

Consumers have a cooling-off period of 5 complete business days after signing a contract for a credit, insurance or other CBUAE-regulated product, during which they can withdraw without undue cost.

Applies to
CBUAE-licensed financial institutions
Checked

When something goes wrong

Complain to the lender in writing. It must acknowledge your complaint within 2 complete business days and send a final written response with its reasons within 30 complete business days. If you are not satisfied, Sanadak, set up by a Central Bank regulation in March 2023, handles complaints from consumers and SMEs against licensed banks, finance companies and insurers. Read how to complain about a bank, and if you are behind on payments, the collection rules after missed payments. For a card payment you did not make, see card fraud and disputed transactions.

Guides on borrower rights

  1. Your rights as a borrower in the UAE: CBUAE consumer protection explained

    A plain-English summary of the Central Bank consumer protection rules for loans and cards: disclosure, fees, cooling-off, fair collections and complaints.

    Updated

  2. How to complain about a bank in the UAE, and when to go to Sanadak

    Complain to your bank first, then to Sanadak, the free ombudsman for Central Bank licensed firms. Deadlines, eligibility, the AED 500 appeal and contacts.

    Updated

  3. Card fraud and disputed transactions in the UAE: what to do

    Spotted a card payment you did not make? Block the card, report it to your bank and the police, and know the Central Bank refund rules and deadlines.

    Updated

  4. Key Facts Statement: what your bank must show you before you borrow

    What a UAE Key Facts Statement is, what Central Bank rules say it must include for loans and cards, and how to read its rate, APR, fee and warning lines.

    Updated

Coming next in this topic

On our content plan. Each title gets a link here when the guide is published.

  • Bank fees and charges in the UAE: what the rules allow
  • Cooling-off period for loans and credit cards in the UAE

Calculators for this topic

Debt burden ratio calculator

How much of your monthly income already goes to debt repayments.

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Loan payment calculator

Monthly instalment and total cost of a loan, at a flat or a reducing rate.

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Flat to reducing rate converter

Turns a flat rate quote into the equivalent reducing rate, and back.

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Frequently asked questions

What is a Key Facts Statement?

A short document a lender must give you before you take a financial product, setting out its main terms and costs. It should be the first document in the sales process, and you sign to confirm you received it.

Who protects bank customers in the UAE?

The Central Bank of the UAE sets consumer protection rules for the institutions it licenses, and Sanadak handles complaints that those institutions have not resolved.

How long does a bank have to answer a complaint?

It must acknowledge a written complaint within 2 business days and send a final response within 30 business days.

Is complaining to Sanadak free?

Yes, for consumers and SMEs. Only an appeal to its Appeals Committee carries a fee.

Sources

Official and primary sources we used for this page, with the date we last opened each one.

  1. CBUAE Consumer Protection Regulation (Circular 8/2020) Central Bank of the UAE. Accessed .
  2. CBUAE Consumer Protection Standards (Notice 1158/2021), Article 2: Disclosure and Transparency Central Bank of the UAE. Accessed .
  3. CBUAE Consumer Protection Standards (Notice 1158/2021), Article 7: Responsible Financing Practice Central Bank of the UAE. Accessed .
  4. CBUAE Consumer Protection Standards (Notice 1158/2021), Article 5: Business Conduct Central Bank of the UAE. Accessed .
  5. CBUAE Clarifications and Guidelines Manual for Regulation No. 29/2011 (Notice 2901/2011) Central Bank of the UAE. Accessed .
  6. CBUAE Regulation No. 29/2011 Regarding Bank Loans & Other Services Offered to Individual Customers, Appendix No. (2): Maximum Limits for Fees and Commissions Central Bank of the UAE. Accessed .
  7. CBUAE Consumer Protection Standards (Notice 1158/2021), Article 8: Complaint Management and Complaint Resolution Central Bank of the UAE. Accessed .
  8. CBUAE Regulation on the Establishment of an Ombudsman Unit (Sanadak), Notice 1659/2023, Article 2: Establishment of the Ombudsman Unit Central Bank of the UAE. Accessed .
  9. FAQs Sanadak (UAE financial and insurance ombudsman unit). Accessed .