Damn Banks II

I received a comment on my last post from Anonymous who seems to be an insider at one time. It was very informative and brought up some good points that I had to answer. The comment was long and my responses were at least just as long so I decided to make a new post. Maybe we all can learn something and clear up some misunderstandings, if any.

Anonymous is in yellow text, mine in white.


Anonymous said...

    LOL! SOME of what you said is true, some are "spiced" if you will.

    BTW, that building that you said came from somewhere... It isnt OWNED by NBAD. That building is owned by a member of a royal family. 3 floors are rented by NBAD.

You maybe have me there! I looked for a stock photo of a big building with the NBAD logo on it for the first photo. Its kind of a blogging thing. Here is the real HQ, the NBAD tower.

NBAD Tower

    There is no link with immigration, or with the traffic dept. If you want I will tell you the exact process (I had sadly asked that many ppl be bared from flying myself)

When a person properly quits their job, they have to surrender their passport to their employer/sponsor and will only get it back (on the day of travel) after all paperwork, including clearance letters from the banks et al, are submitted. If an expat cannot provide these, they do not get their passport back until all debts are paid. They can't leave as they have they have no passport, job or home at this point. I have heard jail is a desperate option.

What this does is creates the runner/absconder phenominon. Things go bad here with some folks for various reasons and they are deep enough in debt they cannot come up with the cash to settle local debts. So instead of having the option of leaving and paying the debt from abroad, they get desperate and just escape. I see enough dusty cars with flat tires in airport parking lots to know this is quite common. I think most people want to pay their debts but these rules force some into a corner. Seems the banks stand to lose more the way things are than trying to work with their customers before it becomes a legal problem.

Curiously, as I said in a previous post the banks seem uninterested in retrieving these automotive orphans to mitigate losses.

Banks Seem Unconcerned About Recovering These Assets, They Are Everywhere

 
    Also, there are reasons why banks here cant allow people to pay for debt from abroad. Mainly because you cant enforce it in any way. If a bank scares you into thinking that it can "get" you when ur back home, they are usually mistaken. Few are the countries in which a bank here can get a bad debt holder to pay. Truth.

I think that is changing. I recently got a small personal loan and was asked for family addresses back in the US and my Social Security Number so I could be easily located.Debt collector firms wordwide purchase bad debts from banks all the time and take on the risk of recovering the debt. VISA and Mastercard are also global companies with aggressive collection methods and could damage my credit rating back in the US.

    There are however non official ways to continue to pay for asset backed loans (Like a car or house) but we wont get into those. I will say that I had set a few such schemes up for customers and they did not cause me any issues till the day I left. But not all customers are like that. With 20% of the country being labor, and another 30% being low level employees (with low incomes) you simply cant take chances with everyone. It it really is a chance.

    The banking system here is based on caution. In the UAE it's the exact opposite. Yes, a healthy way to be would to have a nice balance, but you have to understand the contact, this region is not a stable one. the UAE may be stable, but it's surrounded by shit and bad stuff.

    Also, with 90% of the country's population foreigners, the control you have over securing your loan is close to nil. Truth is if you take out 500K worth of loans and leave within a week, the bank will have no warning and little recourse.

I think any of the banks here would go after someone owing that amount of money. They would be crazy not to.

    As for banks not being all they can be to consumers, it depends both on the bank and the consumer.

    If you have a salary of 55K, a 1.6 million mortgage, a car loan, a personal loan, and credit cards, the banks are the best you'll ever deal with.

    If you make 55K and send 45 back home on the same day, most banks wont care about you.

I truly understand about the demographics here and the difficulties they bring.

    Also, not all banks here have the same focus. NBAD has, and is, and probably always will be a corporate bank. Its main job (originally, and still) is to be the banker of the Govt of the Emirate of Abu Dhabi as well as govt owned companies, semi govt companies, and large corporations.

    Do they have consumer banking solutions? yes. Are they good? Maybe. Are they the best? No.

    For a consumer, a more consumer focused bank like RAK bank might be a better option. RAK Bank is one of the few UAE banks that does NOT have a corporate banking section. Only consumer (you) and SME (Your small business)

    As for consumer rates (You mention a credit card at 35%) yes, it is highway robbery. But things are getting better. A few months back the central bank limited what a bank can offer and charge in terms of base banking and lending. CC were not included. Maybe in the revision next year. (Last year a certificate of liability costed 400, today its no more than 100 by law)

I have VISA and MC CC's with US banks that charge 10-12%. I agree 35% is very excessive for the same here. I took that aformentioned small personal loan (unsecured) for a very reasonable single digit rate. The credit cards are a cash cow and are aggressively marketed by commissioned salespeople. The rules seem lax and a lot of naive newcomers succomb the the lure of easy and high credit limits.

    The lack of a central lending database = ppl can get into debt easily and with multiple banks without the banks knowing. But this isnt the banks fault. The lack of the data base is the system's fault, but no one forces all these morons to sign those loan agreements.

 You are right on this. Theoretically, a person can get multiple credit accounts from several institutions without being qualified for the aggregate of the limits. This would not happen in countries with an independent credit bureau because that person could be tracke and info shared between financial institutions. In the US, every citizen has a credit score which sets limits on the amount that can be borrowed.

    It simply isnt anyone else's fault if you cant manage your finances.

I agree with you on that, but it seems a lot of people get into trouble in the UAE and that trouble can cause very serious legal consequences. In my opinion, the banks are like drug pushers making easy credit available to most. Hell, I bought a 99,000AED car on 100% credit after just 90 days on the job. Was that dumb...yes! Would I do it again...no! That car is sold now and I currently free of debt, at least in the UAE. I know many that are way over their heads in credit balances and will have to be in the UAE many more years than they want.

But ultimately it was my decision as I rose to the bait and took the hook.The banks are enablers but it is ultimately the individual that is responsible to refuse the offer.

    But yeah, you added alot of "baharat" (Spices) to the story Ace.

I didn't intend on singling out NBAD. They have treated me quite well except for the online banking troubles. My post tended to drift toward the overall financial system in the UAE as seen by a retail customer.

You are/were obviously a bank employee. I appreciate the insight and if there is something I failed to understand, let me know and maybe I won't sprinkle as much "baharat" on my future posts about the rules here.

UPDATE:

I just received an email today, 19 November, from the bank addressing my initial question I asked on 29 October, see below.

Email from Ace to the National Bank of Abu Dhabi, 29 October:

I am now blocked from my online account. I need this fixed as I have bills to pay. Your phone message says 24/7 service for the online accounts and I was informed I could not be helped after 11:00 PM as the technical service was closed.

Ever since the website has changed, there have been problems.

Ace

The "prompt" reply 3 weeks later, 19 November:

Dear Ace,

              

Thank you for your recent email.

You are kindly requested to reply the following to help us process this faster:

                         

1. NBAD Account number:

2. PO Box number:       

3. Branch you received the password from:

4. Mobile/Telephone number:

5. NbadOnline User ID: 

6. time to be contacted :        

                                           

For any further assistance, please do not hesitate to contact us again on toll free 800 XXXX  from outside UAE) between 8:00 AM to 12:00 AM on all UAE working days (from Saturday to Thursday) or send us a reply email.

                                             

Thank you for using nbadOnline.

                                        

Regards,                                 

                                        

Back Office Person

Internet Banking Unit

National Bank of Abu Dhabi

I had better luck with the telephone help-line and the problem was solved 2 1/2 weeks ago through them.  Apparently the email guys are not only unaware that the problem was fixed a long time ago by a 1 1/2 hour call to the help-line, they are just getting around to looking at the problem 3 weeks after my initial email complaint. Unbelievable!!!!

I expect things to work once they are set up. Here  internet , banking , electricity and cable TV services are very fragile and I have experienced many unexpected shutdowns. I cringe when I have to enter the labyrinth of what is called "customer service" in Abu Dhabi. It has always meant a time consuming and frustrating experience trying to correct a situation that was not of my making.  

Damn Banks

Both Abu Dhabi and Dubai have become huge world financial centers in the past 40 years. With the oil export and tourism income there is plenty of cash flow that attracts international banks as well as made home grown institutions very wealthy. For the most part these banks are some of the safest and most innovative in the world. One can even instantly pay a parking meter or almost any bill from a cell phone text message.

However, the banking business must be the lowest risk enterprise in the UAE. I am sure they take care of each other and big corporate clients in the "Good Old Boy " club but the ordinary retail guys seem to get it in the neck. 35 % interest on credit cards and an unholy alliance with immigrations assures a healthy profit and jail time for anyone attempting to leave the country with debt.

You will take it and like it! (Apologies to Gunny Ermey!)

Many innocents are lured with fast and easy credit when first arriving here and get into a big bind. It is tempting with the apparent affluent lifestyle of fancy cars and designer shops.  People should pay their debts but should be able to do so from another country if they choose. That option is not available here.

But Solar Powered ATMs Are

I recently had problems with my bank, the National Bank of Abu Dhabi (NBAD). This firm sent out a notice a few months ago that they were upgrading their website and I would have to make some adjustments such as losing my templates I used to transfer money and pay bills. From my past experiences with the national telephone, internet and cable TV companies, I had a strong feeling this website upgrade was not going to end well. It didn't.

We Like You!!

Two days after the "upgrade" I tried to log on and got errors and denied access. I called the help desk and was assured the problem would be handled and I would be called back with the magic solution. No call back for 2 days. I called again and my password was reset....failure again. I made my 3rd call and was told I can't be helped because the technical center was now closed despite the on-hold recording proudly announcing online help was available 24/7. The same recording told me to press 4 for online support and after suffering through more minutes of raucous advertisements it told me to press 6 for the special online help desk. So I did.

Mind you, I have a lot of bills to pay back in the US and I have to refill that bucket every month ontime or suffer some very expensive consequences. That urgency was lost on my bank. I finally got the site working after another lengthy phone call only to find it takes many more levels of security, passwords, questions, token codes and I had to redo all my payment templates. Very clunky and not an improvement. I do not mind security, but this could have been made sleeker and more user friendly. I suspect I will cringe everytime I have to do online banking again. I just expect something else to go wrong.

This Big Building Didn't Just Spring Out Of The Ground By Itself

Overall, NBAD is not a bad bank but they screwed this up. Remember, the rules are different here and things are definitely tilted in the banks' favor. You will not win, ever. The vast majority of my friends and co-workers have horror stories about their dealings with UAE banks.

My recommendations:

DO NOT get a local credit card, even if it says Visa or Mastercard on it, the rules are different. Read the fine print. Keep cards and debt in your home country.

DO NOT buy a new car. Get a good used one, they are cheap and plentiful.

DO NOT go into any kind of debt here. The banks are ruthless and if things go tits-up for you, you could get prison time. Its the law. You will severely limit your "options".

DO NOT  keep more in your local UAE account than you need to live on month to month. Send the excess back home. The banks will take what is in your account on the slightest pretense such as a traffic violation. Geez, they even want ~$40USD to give you a clearance letter saying you do not owe them any money.

I am not picking on the UAE banks specifically, they just have their own rules that are bad for us consumers. The banking industry in the USA has caused far more damage to the global economy and hurt more people than a UAE bank could ever do. Shame on them and their greedy ways. They screwed up a good thing, may they rot in hell!

Songkran

I have been in kind of a mental slump lately. Maybe it is the return of the heat to this region, or maybe it is fatigue due to my brutal work schedule.All I know is that I have had a severe case of dont-give-a-shit-itis in the past couple of months. A possible cure for this condition presented itself in the form of an invitation to join a colleague and his Thai wife and 4 year old son to Thailand last month for Songkran.

Songkran is the Thai New Year' Celebration. In the old days it was held when certain astrological conditions were met that closely coincided with the vernal equinox. Elders and monks were visited and water was sprinkled on the shoulders of family and friends as gestures of good luck for the coming year. Faces of those  blessed by Buddhist monks bore a chalk marking, also a symbol of good luck.  Seems like no matter where you are there is some sort of vernal equinox celebration.It seems a universal human need to welcome the time when the Sun is aligned with the equator and daytime and nightime are equal. Christianity's Easter is an example.

In modern times Songkran has been pegged around the middle of April. Different regions of the country celebrate at different times but mostly it is observed between the 13th and the 19th. The gentle sprinkles of water have given way to water bazookas and 5 liter buckets recharged from giant bins of ice cold water. Motorists on certain streets have to run a gauntlet of revelers armed to the teeth with diabolical water dispensing devices. No one can expect to stay dry. My mobile phone was a casualty of an errant splash.

A Direct Hit on a Mobile Dreadnaught

Couple of the Valiant Troops

Waiting for the Taxis

These Guys are not to be Screwed With

Looking for Trouble

Logistics Kept us full of Beer

Thailand, Land of Smiles!

Howling at the Moon

You Fill in the Blanks! No Magnums?  Dammit!!!

This is Weird on Different Levels..What's with the Bow Tie? Formal Night?

After 3 Days of Songkran, I can Relate with these Thai Pups!

At first I was I was skeptical. How much fun can I have being squirted with ice water constantly for 3 days? Come to find out, it was a blast! I felt I was 10 years old again. It was like an aquatic Mardi Gras. What's better than the sanctioned, unlimited use of a water bazooka against others?

Everyone was in a good mood and I never saw even the hint of a conflict. I love Thailand and its people. The Land of Smiles! They know something about happiness in life that us Westerners have yet to discover.

Go to Thailand during Sangkran (or anytime), you will not regret it!

LIQUOR LICENCE-LOCATION DETAILS

My resourceful readers beat me to it, one even has GPS coordinates. Nothing is easy here when it comes to finding things.I apologize by not posting these images earlier but my internet was down for the last 4 days from dealing with a dispute with the telecommunications giant here in Abu Dhabi well known for their customer service. I think most can relate.

There are no street addresses and everyone you ask seems to have a different opinion on which direction one needs to go to get to the desired destination. It is especially frustrating when a legal requirement must be met and good intentions are thwarted due to lack of information.

IMHO, the whole Liquor Licence thing requirement is going away due to what I have seen lately, but best be legal just in case.

Below is a Google Earth view of the new office. The courtyard to the lower left is a shambles due to construction which makes it hard to find the place to park as there is no local parking and the licence renewal office is smaller than my bathroom.

Thousands of expats are trying to do the right thing and comply with the law, but this is gonna be tough!

The road at top is the Mooror Road

 

 

 

 

Good luck, you will need it!

Equestrian Polo, Abu Dhabi Style

I was recently invited to a polo match. It came out of the blue and I didn't know what to think of it. I was thinking I would have to find a crested blazer and an ascot to fit in. I am not Thurston Howell III  but a simple guy who likes simple pleasures and this seemed way out of my league. I was assured otherwise and decided to go.

Thurston Howell III and his wife, Lovey

It was a beautiful Spring day and I rented a car to go to the venue halfway between Dubai and Abu Dhabi. I miss owning a car and was excited to have the freedom to go where I want, when I want if only for 48 hours. I am looking for a "beater" car to regain my independence. Taxis and public transportation have their place but there just seems something missing by not owning one's car.

Anyway, I arrived at a well groomed polo grounds. Admission was free and although there was a VIP section, we all decided to go "picnic style" as did most other spectators. Wine, cheese and bread were consumed while watching the action just yards away. Enjoy the images.

 

Pre-match procession

 

 

Ace, enjoying the action!

My Lovely Hostesses

Scoreboard, I still don't know the rules

Ae

Aerial Feats!

 

 

The guy actually missed the roof but not by much!

Even though I miss my friends and family back in the USA, I feel fortunate to have the opportunity to live and work in the UAE. I have options and experiences to be had here that I may not have had back home. After all, you only go around once.

 

And I Thought Traffic in Abu Dhabi was Bad......

I often complain about the bad drivers and daunting traffic in the UAE, but when I stumbled across these videos I realize I was just being a wimp. This is the real deal!

Mumbai (formerly Bombay), India. Not much density here but the way the large trucks, cars, motorcycles, bicycles and pedestrians interact is hypnotic to me. I watched this several times in awe at the cooperation between the different types of transport. Pure impromtu choreography without middle fingers or shakened fists displayed. Everyone just kept moving and dealt with it.

The two videos above are from Ho Chi Minh City (Saigon). The traffic is denser and almost takes on an organic look as if the mass of vehicles are the corpuscles of some large animal. Its almost as like each driver knows what the others are going to do through some understanding of universal unwritten rules. It is lawlessness and anarchy that somehow seems to work without too much bloodshed. I think it is an uniquely Asian thing. Could you imagine this chaos working in the Western world? I can't, we need our traffic lights, signs, cops and turn signals.

And finally Kathmandu, Nepal. I have experienced this personally during  a long weekend there. I hired a driver who deftly navigated the vehicular mayhem without a care in the world. He was in tune and did just fine.. I was in the back seat white-knuckling the grab handle above my head and getting sensory overload from the speed, congestion, horns, exhaust smells and the "coat of paint" proximity to our fellow motorists.

I am of the impression that these are not bad drivers, in fact I envy the skill demonstrated in such a hostile environment. I couldn't do it without a few dented fenders or spearing a moped. I would need a drink after (or before!) a few blocks at the wheel in these places.

On the other hand, some of the drivers in the UAE are just stupid. The roads are first-class here and there are more than a few that look at that as license to drive like maniacs just because they can. They tend to lack the concept of self preservation or responsibility to their potential innocent victims. One example of this is the red light runner captured on the video below, selfish bastard!

Abu Dhabi Golf Championship 2011

I went to the Abu Dhabi Golf Championship the other day. The weather was appropriate as the cool temperatures, overcast skies and occasional drizzle were reminiscent of the sport's birthplace in Scotland. The climate was very unusual for Abu Dhabi as for four days in a row it was cloudy, cool and rainy. In all my time here I don't recall a series of days it was this way.

The Falcon is the State Bird of the UAE,,,,Hence the Design of the Clubhouse

I have a love/hate relationship with golf. I used to play at least twice a week back in the day. While I enjoyed being in the groomed beauty of the links, I got frustrated in the difficulty of the sport. One millimeter off on a swing and the ball careenes into the woods. There is nothing worse to a golfer's ears than to hear his ball bouncing off of tree trunks that are out of bounds of the fairway. It is almost impossible to find the ball when this happens and a snakebite is risked looking for it anyway. Best to take the penalty.

Go Left...Left...Left...Dammit!

Golf is unique as your competitor is yourself. You don't actually play against your partner, you try to best your last score despite who you are playing with. Of course score is kept, but golf has handicaps which means the less skilled are spotted strokes so in theory everything is supposed to be equal. Unlike football, cricket or baseball, there is no direct competition between you and your partner. It is you against the course.

An Unconventional Stance

I actually have not played in several years as I found I could get angry and frustrated without gripping a 5 iron and paying a green's fee. I have been known to throw a club or two after a bad shot and I discovered that despite the bucolic setting, other golfers tend toward the rude. They just take themselves too seriously.

This really can't be too comfortable, have the caddy hold the club

Some of the aspects of golf I enjoyed is that like bowling, one can play while smoking cigars and drinking beers. Unlike bowling though, you are outside and the whole world is your urinal. Yes, golfers pee in the woods but the cultured ones take their glove off first.

Then there are the golf carts. I have never seen vehicles so abused as these were when out of sight of the clubhouse or a course marshal. I have seen these in full tilt four wheel drifts on fairways, run high speed through creeks, driven up tree trunks and more. The original off-road vehicle. Besides, driving under the influence is overlooked on most golf courses.

Golf Cart...Abu Dhabi Style

So I quit playing. Because of this I am saving money and my blood pressure is way down. This doesn't mean I don't like golf, it is a game of finesse played in beautiful venues. If I had my choice, Ii would just take a nice walk along the fairways. There is nothing more peaceful than a golf course at sunset.

The Leaderboard

That being said, the Abu Dhabi Golf Championship pulled off another winner. I enjoyed being there as the location and people were great! A class act and a great spectator experience. There were activities there for all. They put on a good show and I recommend everyone attend future events. I have to admire the guys who play professionally, it is a tough way to make a living.

My 2011 New Year Resolutions

The beginning of a new year is the time which many take stock of their lives and endeavor to make a fresh start to improve themselves or their lifestyle. Most of these self-promises involve getting rid of bad habits such as smoking, drinking, overeating and replacing them with healthy diets, exercise and other good practices. While this is a noble cause, I wonder how many people stick to their resolutions. Studies show that it takes at least six weeks for a new behavior to replace the old one. That’s a long time to be inconvenienced!

As for my own New Year plans, I pledge to:

--Eat and drink what I want, when I want. Food and drink are here for our pleasure. My consumption indirectly provides valuable jobs to farmers, ranchers, brewers and restaurant workers and who am I to deny them or myself. Win-win, don’t worry, be happy!

Scene from Monte Python's The Meaning of Life

--Lead a sedentary, lazy life. I believe one is born with only so many heartbeats left in their future. Why accelerate my demise by exercising and using my allocated heartbeats faster? Pain, sweat, odor and bad joints are also unpleasant byproducts of vigorous activity. I plan to keep my pulse slow by spending long, uninterrupted hours watching TV and taking frequent naps.

Keeping the Pulse Rate Low

--Quit worrying about money. If I want that cool new mobile phone or other gadget that will make my life easier, I will buy it no matter how little cash I have in the bank. Isn’t that what credit cards are for? Money is nothing than dirty paper strips without merit until I convert it into a shiny new trinket I can brag to my friends about.

Buying Stuff is Fun!!!!

--Stop stressing about all the clothes on the floor and dirty dishes in the sink. The clothes are easier to find that way and I might hurt my back by picking them up all the time. Washing dishes causes unsightly wrinkles on my hands. Why bother? I plan to switch to all styrofoam/plastic tableware and toss them out in the trash when soiled. My dishes and cups will be filling that landfill south of town instead of my kitchen sink. Problem solved!

No more going through cramped drawers or closets...its all right here!!!

Goodbye dirty dishes,,,I am going disposable!!

--Drive as if I am the only one on the road. I am only cheating myself by being safe and courteous, no more letting that guy merge in front of me. As for using my turn indicators, forget it, that only makes the light bulbs burn out sooner. Speed limits are not for me anymore, I am going to drive like my hair is on fire as my reason is  more important than my fellow motorists’ reasons for being on the road! Double park, you betcha! Screw 'em!

Heena Khan/Gulf News Photo

I believe that these resolutions will be real easy to keep. I like to win and hate to lose so I think I have made a solid plan for 2011 that will have a very high likelihood for success! Feel free to adopt my plan and modify the resolutions to fit your own lifestyle. You will be glad you did! I will let you know how it is going in six weeks.

Thailand Part 2

So as fascinating as Bangkok was, my friend and his family left for Abu Dhabi and I had itchy feet so I decided to go to Koh Chang, an island in the Gulf of Thailand six hours bus trip south of Bangkok. I eventually got to Trat, the nearest city to the island but the ferries had stopped running so I spent the night there and arranged transport to Koh Chang island the next morning.

After a 30 minute ride through the Thai countryside, we arrived at the ferry terminal. Automobiles on the bottom and people on the top deck of the rusty ship. It was chilly on board but a snack shop had beers so I survived without too much discomfort.

The voyage to the island took about an hour. The weather was hazy and the island revealed itself after about half way there as huge mountains jutting out of the gulf.

KOH CHANG ISLAND

ON THE FERRY

I arrived at the small port and waited for the pickup truck to take me to the other side of the island where my hotel was. The trucks have a canvas covering over the bed and the riders sit on makeshift bench seats in the bed aligned longitudinally. I arrived at my hotel and checked in to a very nice room. Thailand is inexpensive and a typical room costs USD$30/ night, breakfast included.

7/11s are everywhere

The next day I hired a guide to show me the island. We drove on the hilly roller-coaster roads to the southern most point of the island called Bang Bao where there was an overwater marketplace. I had a great meal (but the scallop appetizer gave me a rash, I think) and enjoyed the sunset with a couple of beers.

THERE SEEMED TO BE AT LEAST ONE MISHAP IN THE HARBOR

On the way we stopped by an elephant place. I declined a ride on the pachyderms but decided to feed them instead. These guys can eat an entire pineapple whole. Seems that would be rough going down the throat but they didn't seem to care. On one occasion, I almost  got a "trunk job"! 

FRIENDLY ELEPHANT

I loved the elephants and spent a lot of time there. I felt a connection with them.

There were monkeys too.

The weather could have been better. There was a high overcast and it was very windy. Otherwise, I did enjoy myself on the island. Four days there then back to Bangkok and then to Abu Dhabi.