Picture for illustration purposes only.
PHOTO BY ARCHIVE
DUBAI – Nearly 36,000 customers of Rakbank have had their credit card limit reduced to as low as Dh5,000 as part of measures during the coronavirus pandemic.
Rakbank CEO Peter England confirmed that the credit limit reductions affected 25 percent of inactive customers while the rest did not use the maximum limit.
“About 36,000 had some form of limit reduction and most of these clients were people who were not utilising their limits to any great extent,” England told Dubai Eye.
Customers, including those with previous credit limits above Dh100,000, have received text messages saying that their credit card limit had been reduced to Dh5,000.
England said the bank looked at the customers’ spending patterns to determine the credit limit cuts.
“What we did is we looked at their highest spend over the last 6 months and we reduced the limit to somewhere between 120-150% of that highest spend,” he said.
England also said Rakbank had taken on Dh130 million in provision to combat the economic impact of Covid-19.
The bank had reported a 43.2 percent drop in net profit in the first quarter of 2020 at Dh153.5 million compared to the same period last year. ICA/Expat Media
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