UAE Central Bank bans loan selling over the phone

Breaking News: The Central Bank of the UAE has banned banks and finance companies from selling loans over the phone.

Banks and finance companies have been banned by the Central Bank from calling customers to market loans and other services.

Many bank representatives were in the habit of calling targeted customers directly by phone, "causing such customers a lot of disturbances, which also gives a negative impression about the status of UAE banks," the regulator said.

It issued the warning in a circular to banks and finance companies dated Sunday.

Companies failing to comply with the latest ruling face the possibility of fines, said Saleh al Tenaiji, senior manager of the Central Bank's banking supervision and examination department.

The crackdown comes just weeks after the Central Bank announced new limits designed to curb excessive service fees for retail products offered by banks. Those rules also included caps on the size of loans banks could extend to customers.