Category: Consumer Protection

Consumer Protection in the UAE Banking Industry: Rights, Remedies, and Relief

Introduction

Financial hardship can happen to anyone — job loss, unexpected medical bills, or sudden market shifts. But what happens when you fall behind on payments? What protections do you have when banks or debt collectors start calling?

This article breaks down how the UAE protects consumers in the banking sector, what the Consumer Protection Regulation and Rulebook require from banks, and how you can seek help or file complaints if things go wrong.

Whether you’re a borrower under pressure or simply want to understand your financial rights in the UAE, this is your complete guide to the law — made simple.

Summary

The foundation of consumer protection in the UAE banking industry lies with the UAE Central Bank’s Consumer Protection Regulation (2020) and the Consumer Protection Standards and Rulebook (2021), which took full effect in 2023.

These aren’t optional guidelines — they’re binding obligations for every bank and licensed financial institution operating in the UAE. Together, they outline:

What banks must do to treat customers fairly, transparently, and responsibly.
What consumers are entitled to, including clear communication, privacy, and fair treatment.
How disputes are resolved, particularly through Sanadak, the UAE’s Financial Ombudsman.

The Rulebook is built on seven principles:

Principle	Meaning
Fair treatment	Equal and respectful dealings with all consumers
Disclosure and transparency	Clear, complete, and honest information
Data protection	Safeguarding personal and financial data
Responsible lending	Avoiding loans consumers can’t afford
Complaints resolution	Clear, timely handling of grievances
Financial literacy	Helping consumers make informed choices
Market conduct	Promoting ethical, compliant financial behavior

In short — banks have duties, and consumers have rights.

Importance and Impact

These laws have reshaped the UAE’s financial landscape.

Historically, banks held the upper hand in consumer relationships. Today, that balance has shifted. The Central Bank now enforces accountability, transparency, and fairness, ensuring that banks act not as predators, but as partners.

For consumers, this means stronger protection and real recourse. You’re no longer left at the mercy of a bank’s discretion.
For banks, it raises the bar — demanding ethical conduct, transparency, and compliance at every level.

At its heart, this framework strengthens trust — the most valuable currency in any financial system.

Key Provisions

The Consumer Protection Rulebook covers every part of the bank-customer relationship.

What Banks Must Do

Banks in the UAE are now legally required to:

Disclose all terms upfront, including fees, interest rates, and conditions.
Avoid misleading advertising or hidden charges.
Assess affordability before lending, to ensure borrowers aren’t over-extended.
Maintain a proper complaints system, acknowledging and resolving issues within defined timelines.
Protect client data from misuse or leaks.
Treat customers in distress with empathy, not aggression.

They are expressly forbidden from coercive debt collection, and failure to comply is a direct breach of Central Bank regulations.

What Consumers Are Entitled To

Consumers have legally enforceable rights to:

Honest information about financial products and risks.
Respectful treatment from banks and agents.
Privacy protection for their personal and financial data.
Access to complaint channels, both internal and via the Central Bank.
Freedom from harassment during debt recovery.

If your bank doesn’t resolve your complaint within the required period, you can escalate directly to the Central Bank’s Consumer Protection Department.

Clients in Financial Distress

Under Section 5.2.4 of the Rulebook, banks must support clients facing genuine financial hardship.

This includes:

Debt counselling before or after default.
Respectful communication, avoiding hostility or humiliation.
Transparency in all restructuring terms.
Full disclosure of new repayment fees or conditions.
Written reasoning for any rejected repayment proposal.

Banks must proactively identify and assist struggling clients — not wait for them to fail.

Debt Collection Rules

Article 5.25 of the Consumer Protection Standards regulates debt collection with clear boundaries:

No harassment or intimidation.
No home or workplace visits without consent or a court order.
Contact hours: between 9:00 a.m. and 8:00 p.m. only.
No third-party data sharing without consent.

Collection agencies must identify themselves, act only under written authorization from a licensed bank, and provide proof upon request.

Penalties

Violating consumer protection laws isn’t just unethical — it’s criminal.

Under Article 450 of Federal Decree-Law No. 31 of 2021 (Crimes and Penalties Law): Anyone who, through threats, compels another to hand over money or property, faces imprisonment and fines.

If the threat involves defamatory or dishonorable claims, penalties increase.

Article 404 further criminalizes verbal or implied threats, punishable by up to one year’s imprisonment or a fine of AED 10,000.

The UAE Central Bank can also impose administrative actions, including:

Monetary fines
Public reprimands
Corrective directives
Revocation of licenses or management replacement

Reporting Consumer Protection Violations

If you’ve been harassed or unfairly treated by a bank or its agents, you have options.

File a complaint with your bank’s internal system first.
If unresolved, contact the Central Bank’s Consumer Protection Department through their official portal.
For escalated disputes, approach Sanadak — the UAE’s Financial Ombudsman Unit.

How to File a Sanadak Complaint

Provide the following details:

Your name, Emirates ID, and contact information.
The financial institution’s details.
A clear description of the issue.
Proof of prior communication and rejection.
The complaint or case number issued by your bank.

Sanadak will verify your claim, mediate between you and the bank, and issue a decision. You can appeal within 30 days, and banks must comply within 14 days of a final ruling.

How LYLAW Can Help

When it comes to banking and consumer disputes, legal guidance makes all the difference.

At LYLAW, our legal team has deep experience navigating UAE consumer protection laws, representing both individuals and businesses. Whether you’re facing aggressive debt collection, a rejected restructuring proposal, or unclear lending terms, we can:

Review your loan and banking documents for legal compliance.
Draft formal complaints and escalation letters.
Represent you before the UAE Central Bank.
Advocate for fair settlements and lawful treatment.

Contact LYLAW today to protect your rights and ensure your case is handled with precision and professionalism.

Consumer Protection in the UAE

Consumer protection in the UAE is not theoretical — it is a well-defined legal framework designed to protect people across all types of purchases. Whether you are buying from a physical store or a mobile app, the law is designed to ensure that consumers are treated fairly and have recourse when they are not.

This framework is primarily governed by Federal Law No. 15 of 2020, amended by Federal Decree-Law No. 5 of 2023, and its Executive Regulation issued under Cabinet Resolution No. 66 of 2023. For digital transactions, protections are also provided under Federal Decree-Law No. 14 of 2023 on E-Commerce.

Product Defects Are Legal Violations

In the UAE, if a product is defective — due to poor design, faulty manufacturing, or supply issues — the law holds the provider (retailer, manufacturer, or dealer) responsible. Common examples include appliances that fail on first use, electronics with damaged components, or new vehicles that stall within days of purchase.

If a defect is identified, the provider must immediately halt sales, notify authorities, and offer the consumer a refund, replacement, or repair. If the same issue appears three times within the first year, a full refund or replacement becomes mandatory. Repairs taking longer than seven days also require the business to provide a temporary substitute at no cost.

Warranties Must Be Honored — Without Exceptions

Warranties in the UAE are legally required for both goods and services. Whether written or implied, a warranty guarantees that the product or service is free from defects and compliant with applicable standards.

If it fails, the provider must repair, replace, or re-provide it at no cost. The warranty must specify the coverage duration, what is included or excluded, and the consumer’s rights. Delays in repair entitle the consumer to refunds or replacements, and if the consumer is unable to return the product, the provider must arrange collection or send a technician.

Maintenance Services Are a Legal Right

For any product under warranty, maintenance is not a favor — it is required by law. This includes appliances, vehicles, electronics, and more. Businesses must act promptly, repair defects free of charge, and provide temporary replacements if repairs exceed seven days.

Consumers are also entitled to pickup or technician visits at no extra cost. If service is denied or delayed unreasonably, the consumer may request a refund, replacement, or compensation.

Unfair Contract Clauses Are Invalid

Even if a consumer signs an agreement, certain terms are unenforceable if they attempt to override the law. This includes “no return or exchange” policies (except for custom or perishable goods), subjective quality disclaimers, and clauses waiving liability for defective services.

For example, if a seller defines what is “acceptable quality” after delivering a damaged item — that defense has no legal standing unless you expressly agreed to the defect. Likewise, requiring repairs at specific locations far from the consumer is unlawful if no accessible alternative exists.

Promotions Must Be Honest and Pre-Approved

Sales promotions in the UAE — including discounts, prizes, and competitions — are legally regulated. Providers must obtain prior approval, state all terms clearly, and honor the promotion throughout its advertised period.

Offers must reflect genuine pricing, and any consumer who made a qualifying purchase up to one week before the start of a campaign is entitled to the same benefits. Non-compliance allows the consumer to request a refund within 30 days and may result in penalties or cancellation of the promotion.

Extra Fees for Credit Card Payments Are Illegal

Retailers and service providers are prohibited from charging consumers extra for paying by credit card. This applies to both physical and online purchases. As per Article 5 of the Executive Regulation, the price displayed must be the final price — regardless of how the consumer pays.

Monopolistic Practices Are Strictly Prohibited

To protect fair market access and pricing, the UAE prohibits any conduct that restricts competition. This includes price-fixing, dividing markets among competitors, refusing to sell, or requiring bulk purchases. It also covers selling below cost to eliminate competitors or limiting supply to control availability.

Such conduct is illegal even if it is informal or verbal, and it applies to companies in free zones and e-commerce platforms if UAE consumers are impacted. Violators may face imprisonment, fines of up to AED 200,000, cancellation of agreements, and consumer compensation.

Where to File a Complaint

Consumers in the UAE have several official channels for filing complaints:

Ministry of Economy – Consumer Protection Department: Handles general complaints nationwide such as unfair pricing, defective goods, or misleading advertisements. Submissions can be made online or via the Smart App.
Telecommunications and Digital Government Regulatory Authority (TDRA): For issues related to e-signatures, digital fraud, and platform violations.
Dubai Economy & Tourism (DET): For complaints involving Dubai-licensed businesses. Complaints may be filed via their Consumer App, website, or hotline.
Economic departments of other emirates: Each emirate has its own complaint platform for locally licensed businesses.
UAE police e-crime unit: For cybercrime-related cases including identity theft, phishing, and online fraud.
Emirates Society for Consumer Protection (ESCP): A civil organization that offers mediation and education, and assists consumers in resolving disputes in coordination with official bodies.

Conclusion

The UAE’s consumer protection system is both comprehensive and enforceable. From defective goods to misleading promotions, the law clearly defines the rights of consumers and the responsibilities of businesses. These are not suggestions — they are obligations, backed by legislation, regulatory oversight, and real consequences.

Consumers are encouraged to stay informed, assert their rights, and report violations through the appropriate channels. The law is not only written for you — it is there to be used by you.

Telemarketing Regulations in the UAE

The United Arab Emirates (UAE) recently introduced Cabinet Resolutions No. 56 and No. 57 of 2024, aimed at regulating telemarketing activities to enhance consumer protection. These regulations significantly impact how businesses, including those in free zones, conduct telephone marketing campaigns.

Key Obligations Under the Telemarketing Regulations

Prior Approval: Businesses must secure explicit approval from relevant authorities before initiating telemarketing.
Employee Training: Mandatory training for telemarketers on ethical conduct and adherence to the “Do Not Call” registry.
Local Number Usage: All marketing calls must originate from locally registered numbers.
Recording Calls: Calls must be recorded, and consumers must be informed at the outset of each call.
Consumer Preferences: Businesses must respect consumers listed in the “Do Not Call” registry and those opting out during calls.
Operational Hours: Telemarketing calls permitted only between 9 AM and 6 PM.

Integration with UAE Data Protection Law

The Federal Decree-Law No. 45 of 2021 (PDPL) reinforces these regulations by setting standards for handling personal data, aligning with international data protection practices such as GDPR.

Consent Requirements: Explicit consent is required for data processing and telemarketing calls.
Data Subject Rights: Consumers have the right to access, correct, and request deletion of their personal data.
Cross-Border Transfers: Businesses must ensure adequate safeguards when transferring data internationally.
Security and Compliance: Mandatory data security measures, appointment of Data Protection Officers, and breach reporting.

Telemarketing Practices in the UAE Real Estate Industry

The real estate sector, known for its heavy reliance on direct marketing, faces significant adjustments under the new telemarketing regulations. Real estate agencies and agents have long depended on cold calling and direct outreach to market properties. The new framework imposes stricter controls on these practices, requiring greater accountability and transparency.

Specific Compliance Requirements for Real Estate Agencies

Authorization: Real estate agencies must obtain clear prior authorization before starting telemarketing campaigns.
Transparency: Real estate agents must disclose the source of consumer contact details upon request.
Ethical Marketing: Strict prohibition on misleading or pressurized sales tactics.
Use of Registered Local Numbers: All calls must be made from locally registered phone numbers.
Do Not Call Registry: Agents must regularly update their contact lists against the registry to avoid calling consumers who have opted out.
Timing of Calls: Real estate agents are restricted to contacting consumers between 9 AM and 6 PM.

Recent Enforcement Actions in the Real Estate Sector

The Dubai Corporation for Consumer Protection and Fair Trade (DCCPFT) has already begun enforcing these regulations within the real estate industry. Several real estate agencies have been fined for non-compliance:

In February 2024, 30 real estate companies in Dubai were fined AED 50,000 each for unauthorized telemarketing practices, including calling consumers listed in the Do Not Call Registry (Dubai Land Department)
In a broader enforcement action, 159 companies in Dubai, including real estate firms, were collectively fined AED 50,000 each for violating telemarketing rules, amounting to a total of AED 3.8 million in fines (Khaleej Times).
The total fines imposed on violating telemarketers across the UAE have now reached AED 3.8 million, highlighting the strict regulatory environment and the seriousness of non-compliance (Khaleej Times).

This swift enforcement signals a strong commitment by UAE authorities to regulate telemarketing within the real estate sector, where consumer complaints about intrusive calls have historically been high.

Penalties for Non-Compliance

Penalties include significant fines, suspension or cancellation of licenses, removal from commercial registries, and potential disruption of communication services. Specific financial penalties include:

Violation	First Offense	Second Offense	Third Offense
Failure to obtain prior approval to engage in telemarketing activities	AED 75,000	AED 100,000	AED 150,000
Failure to provide employee training on telemarketing ethics	AED 10,000	AED 25,000	AED 50,000
Unauthorized disclosure of personal data	AED 50,000	AED 75,000	AED 150,000

Recommendations for Compliance

Conduct comprehensive internal audits to ensure compliance.
Regularly update databases against the “Do Not Call” registry.
Implement rigorous staff training and robust data management protocols.
Develop clear guidelines for disclosing the source of consumer contact details.
Ensure that real estate agencies and agents fully understand the boundaries of ethical telemarketing.
Review data collection and processing practices to ensure alignment with the PDPL.