United Arab Emirates (UAE) credit card debt problem

[Unregistered]

Janie2 here you go...see below:



Your credit card is governed by the laws of UAE and your credit card agreement. In this regard, at present you are having a credit card on which there is an amount due but you are not in default. The UAE Central Bank frames laws which govern the provisions regarding loans and debt. At present, the UAE Central Bank has issued directives regarding bank provisions pertaining to credit card debt but no direction restricting a person from leaving UAE has been made. An expatriate may leave UAE along with credit card debt.

Restricting a person from leaving UAE

A bank may take action regarding stopping a person from leaving UAE. In this regard, the bank may file a police complaint in case of default. The police complaint can prevent you from leaving UAE.

Guaranty

Generally a large number of expats in UAE are leaving UAE with debt in credit card or other loan as due. In this regard, if the expat leaves UAE with the amount due then the guarantor can be made to pay the amount due. The bank may take penal action against the Guarantor for amount of loan due. Generally, if the person leaves UAE then his Guarantor is liable to pay.

Red Corner Notice

In case the person leaves with the amount of default then Red Corner Notice may be issued. In this regard, if the person leaves UAE with default in credit card then bank may institute legal proceedings and even a Red Corner Notice may be issued against the person.

India UAE Treaty

The Treaty between UAE and your country allows extradition for economic offences. In this regard, it is necessary that there should not be any default on credit card before your leaving UAE.

Conclusions

1. The UAE Central Bank has issued directives regarding bank provisions pertaining to credit card debt but no direction restricting a person from leaving UAE has been made.
2. The UAE Central Bank has issued directives regarding bank provisions pertaining to credit card debt but no direction restricting a person from leaving UAE has been made.
3. The bank may file a police complaint in case of default. The police complaint can prevent you from leaving UAE.
4. If the expat leaves UAE with the amount due then the Guarantor can be made to pay the amount due.
5. If the person leaves UAE with default in credit card then bank may institute legal proceedings and even a Red Corner Notice may be issued against the person.
6. The Treaty between UAE and your country allows extradition for certain economic offences.

[Unregistered]

Re: United Arab Emirates (UAE) credit card debt problem

THX

[msg]

Re: United Arab Emirates (UAE) credit card debt problem

UAE debt laws are substantially stricter than say US or UK laws.
Frankly I would suggest avoiding the use of such credit altogether there.

[arablaws]

Re: United Arab Emirates (UAE) credit card debt problem

UAE Ministerial Decision No. (10) of 2008 on Collection of Commission for the Use of Credit Card, Direct Debit and Direct Transfer Services in the E-Dirhams System


You can find a complete list of Dubai - UAE Laws

[scourged]

Re: United Arab Emirates (UAE) credit card debt problem

Hello,

I am posting to seek some answers to my dilemma and hopefully get some good advice on what to do.

I am a plain housewife on residence (husband's) visa in the uae, my husband has recently left me for another woman,

I have reason to believe that he has already left the country leaving his unpaid credit card debts for more than 6 months now.

I am a supplementary card holder to one of his credit cards and have been continuously dogged by the bank thru phone which I never answer as I have no idea what to say to them at this moment.

I have no means to pay them since I have no job and only living with relatives.

I am planning to permanently leave the UAE and fly back to my home country.

My questions are:

• Can I be held liable and be forced to shoulder my unfaithful husbands debt?
• Can they impose a travel ban on me and stop me in the airport should I decide to return to my home country?
• Being under husbands sponsorship and supplementary card holder, what are the extents of my liabilty and its corresponding penalty if any?

Thank you so much I am desperately hoping i can be enlightened on this issue.

[Unregistered]

Re: United Arab Emirates (UAE) credit card debt problem

Hi. I worked in UAE for 4 years. Everything was okay until i was struck by recession. I left the country in 2009 back to my home country with unpaid credit card and a personal loan since I cant find another job. My visa was expired. Now I have received calls from this person telling that shes affiliated with bilkish associates in UAE. And as I have found out shes from a collection agency. They kept on calling even on my mothers mobile phone. They also went to my house trying to get information. They are asking me to settle the dues and telling me if I cant do that they will file case against me. Im separated now and raising my kids alone. What I earn here is even not enough with the needs. I was asking them to give me statement of account with the dues that they are asking me to settle. But they have told me that they dont have it and I just need to call the telephone banking abroad to check the dues. What will I do?

*Can they file a case against me knowing that the loan was in UAE?
*How will I deal with the collection agency bugging me?

Hoping for your soon reply.

[unregistered]

Re: United Arab Emirates (UAE) credit card debt problem

Dear Madam

It depends on a few things? For large debts over 150,000 AED banks will track the debt abroad. If you want the debt collector to get off your back then you need to ask them for the number of the banks own recovery agent. In other words, speak to the bank direct. I was in similar situation with a very large debt and the dealing with the bank direct I got the best discount and offer we are talking 50% discount with 6 months to pay and no police case.

You need to do the following:

1. Ask them for all the statements for your credit card and your loan
2. For your personl loan they can do a DRP - delayed repayment plan over 3 years - BUT negotiate with them and keep in mind 50-60% discount.
3. For your credit card, you are usually allowed max 6 months. Negotiate discount to 50% with down payment and balance over 6 months.

When you negotiate tell them - I can agree this now otherwise tomorrow I wont be able to. You put them under pressure. If your debt is small, tell them its too expensive to extradiate me to UAE for this small debt so just agree it!

Tell the debt collector that you prefer to deal with bank - debt collectors think they hold the power they dont. Their aim is to get the highest repayment - remember that. Bank always gives best discount.

BEFORE YOU DO THIS. You ask them to confirm no police case has been made yet. Tell them if you make a police case then I wont pay. They wont make a case if you speak to them directly. Stay in touch dont avoid..because with the police you will have to pay the whole undiscounted amount.

hope this helps - if there is anything else you need, email me [email protected]

[Unregistered]

Hi, there is no way to file a case against you in your home country. Just forget the interpol on red cornere notice, it is not applicable to CC or loan untill not in millions. Ask your collection agent to do what ever he wants. Also you can file a harrasement complaint against them. Be brave they cam not harm you. Cheers.

[Unregistered]

Re: United Arab Emirates (UAE) credit card debt problem

Generally there are two different loans: Secured and Unsecured.

For Secured Loan, if you don't repay your due the Lender (usually Banks) will seize the collateral that you have secured your loan by it.

For Unsecured Loans like Credit Cards, they can not seize anything from you. Because it is an unsecured loan they are CHARGing you a very high ineterest rate (%20 ~ %36 P.A.).

Theorically they can not arrest you, because you have not secured your loan by your life. They just can destroy your credit rating on that country.

If someone harras you because your debt on credit cards or they arrest you, the reason is that country is a third world's one and like a jungle harrasments are very usual.

Take a look at youtube video of a member of Royal family of Abu Dhabi and see how he brutally torture a business partner of himself. Are you talking about that country???

[Unregistered]

Credit Card debt

Hi..

I had left UAE a year back with outstanding on my Credit card as had no job. But now since i got the job i got in touch with the bank and the collection agency later got in touch with me and i repaid the settlement amount. I later got an email from the bank person saying they are withdrawing the legal action as well as will issue a NOC in next few working days.

Just wanted to understand that would there be any criminal record against me in the country as i have already paid the outstanding amount. Will it show up in my records in UAE , will i face any hassels if i wanna reentre the country for employment.

Thanks,
Anonymous

[Unregistered]

Re: United Arab Emirates (UAE) credit card debt problem

hi never pay credit card settlement amount in your home country collection agent .they may not give NOC even after getting payment.better pay in UAE and show the letter of NOC to airport thrugh some one dont try to settle here .........and no law in india that they can recover money from you on behalf of your uae credit card issuing bank

[Unregistered]

Re: United Arab Emirates (UAE) credit card debt problem

What about if I left UAE 2 years ago with loan and CC debts. my visa was cancel and left without informing the banks. Upon arrival in the next GCC Country (where I am now), i inform the bank that I had been transfer. I pay regulary and start defaulting 8 months ago. I am in one of GCC country and my service will be end this month. What I do not understand is the debtors knows where I am and so far I have not received any summons so far? Does this mean UAE debtors had not file the case? If yes, are they going to arrest me in the airport?

[Unregistered]

Re: United Arab Emirates (UAE) credit card debt problem

ive read lots of contradicting bits of advice online regarding leaving the uae with debts.
i'd really like something concrete as i'm in a bit of a mess.
my husband and i have seperated, we lived in dubai for 4 years but we are still living together as its too expensive to live seperate plus we have a young son. i really want to go back to my home country in south africa to have family support but i have debt here (car loan, personal loan, credit card). the car i can sell to pay it off, the repayments will end mid of next year anyway and the other two totals roughly 133000dhs.
i cannot stay here anymore and wish to just leave everything behind and go start my life over and find happiness. I feel like a prisoner here for many reasons.
if there was a way i could pay back the debt i would but i see no other way and want to know if i can get into serious trouble after i've left as i'm not intending to travel near gcc ever again.

[Unregistered]

Re: United Arab Emirates (UAE) credit card debt problem

I am South African also, lived in Dubai for three years. I left that greedy place for good. I left with a relatively small unpaid credit card debt (less than 15000dhs), I simply don't want to pay it back to get back at them for all the hassles I had there and money I lost through dishonest people - from real estate agents, telecoms companies, satellite TV companies to the company I worked for - underpaid and overworked. I can tell you in all honesty nothing will happen - South Africa is a free country with real laws, the UAE laws don't count here. I have been back for two years already, no hassles whatsoever. Come home.

[Unregistered]

Re: United Arab Emirates (UAE) credit card debt problem

In all these discussions nobody ever mentions that there is nothing wrong with disobeying unjust laws. The black people under apartheid in South Africa did that, the French resistance in Nazi-ruled France did that. The Egyptians under Mubarak did that. All in the fight for just societies. The debt laws in the UAE are from the Middle Ages - so many people want to work out ways of paying but there are no options, pay now or face a travel ban and jail. So everyone leaves. In protest in a way. If they were to simply allow you to sign a debit order from the next country you move to, there would be no problem. But the only way they see is to threaten with jail - and impose predatory interest rates. There is nothing wrong in opposing these unjust laws, eventually they will have to change and life will be better for those who come after us.