Ambareen Musa, Founder & CEO of Souqalmal.com, explains why it is important for bank customers to obtain a ‘No Liability Letter’ when settling their loans and closing credit card accounts.
Here’s what she had to say:
“Bank customers usually exercise due diligence when applying for a loan or credit card, but tend to ignore the protocol when settling their debts. A clearance letter, also commonly known as a ‘No Liability letter’ is a legal document issued by the bank stating that the customer has paid off and settled all outstanding dues to the lender, with reference to a loan or credit card account.
The clearance letter is a legal proof of closure of your loan or credit card, and it is an important document that can help you avoid any possible disputes with the lender in the future. And now that credit reporting is quickly becoming the norm in the UAE, it would be advisable to obtain a No Liability letter from the bank, so you can rectify any errors in your credit report.”
For full article go to Gulf News.