A Debt Prison reader contacted me two months ago in regards to the desperate financial crisis she was facing in the UAE with outstanding debt. She began calling her creditors daily to convince them that negotiation was in their best interest as well as hers. With persistence and daily phone calls she convinced the creditors that they must agree to a workable payment plan. For Iara, the key to success against the UAE collectors was to keep the lines of communication open and contact them daily until a favorable solution is gained. The same can often be said about collectors here in the U.S.. See also, DebtPrison.net article ‘Will debt follow you abroad.’
**Disclaimer – Debtprison.net does not administer legal or financial advice. The contents of this website are my opinions on collection agencies and how to deal with them. Nothing on this website should be interpreted as legal advice or council. No opinions on this website should be used to replace the advice of your financial advisor or your legal council.
Without the valuable real-life experiences of my readers this blog would not serve as a reliable source of information for debtors. My thanks to each and every one who has taken the time to share their experiences with collection agencies! Here’s the comment Iara posted about winning against her debtors in the UAE.
Dear Debt Prison,
You asked me to come back to you, so I came back to tell you what happened to me after that disastrous affairs with credit cards in UAE. I mentioned to you how helpless I felt, and I wanted to run for my life and go back to Philippines, my home country. Well, the end was quite the opposite. “FIGHT OR FLIGHT”, I’ve chosen to fight. I am not a criminal to run away.
I started my personal struggle by reading your articles, and it really inspired me, and it taught me the things I need to know: the lies & intimidation of the collections department and how to deal with it. It hasn’t been an easy journey. I decided to tackle my Royal Bank of Scotland credit card first because it was smaller & easier to kill (only AED 6600). I spent almost two months calling them every single day. I’ve gotten to know all the people working there in Collections Department, from the several agents to the Team Leader and then finally the overall Manager.
I was turned down many times or was being referred to various, different people. They kept on telling me that someone will call me back, but nobody ever did. But I never gave up, I called the customer service and I asked for their help. I told them how unhelpful the agents of Collection Department were and if they could just give me the Manager’s number and name. Surprisingly, I got the information, and I talked to the Manager and recounted to him that I’m willing to pay but nobody’s helping me. I told him that I am planning to leave the country for good, and if nobody will arrange my account, I will just leave without paying it. After 30 minutes somebody called me back, they told me to pay the AED 1640.00 and for the succeeding 5 months, I will pay only AED 1000, INTEREST FROZEN (CREDIT CARD SETTLEMENT).
My other credit card started calling me, but I followed your advice. I didn’t talk to them, they would just make me depressed, and there was nothing I could do, having no money to pay the AED 5000 they wanted. So I just dropped AED 200 or AED 500 monthly to that said bank, and I was continuously charged the OVER LIMIT FEE & LATE PAYMENT FEE & ALL THE INTEREST (which is shockingly more than AED 850 per month)!!!!!!!!!!!!!
Weeks crept on. Then few days ago, I received an email from FGB offering me an Easy Payment Plan that has no other fees but only the 1% per month (so that’s only 12% per annum), and payable for 36 months . . . I was really happy when I received it. Imagine, I am charged more than AED 800 per month for the penalties and interest alone, but with this plan, I am actually paying only AED 238 interest per month with my outstanding divided to 36 months.
I signed the offer, and now I cannot imagine the relief I feel for having a debt-free life. ALMOST.
I hope that my story will serve as an inspiration to those desperate souls out there.
6 months ago, I thought about ending my life because of debt.
Now, I am sooo good. I lost a lot of money, but I earned an experience and I learned a lesson.
Grateful,
iara
1. those who left or ran away from GCC due to debt, stay where you are otherwise you’ll be put in jail once you enter GCC. I have lots of first hand story of people who transited or travelled back to KSA, UAE & Qatar who were arrested at the airport and sent to jail, why I know this? because I was in jail because of a check case and I happen to listen to stories of those who were arrested @ the airports.
2. If you have debt problem due to loan/creditcard, the only person who can help you is your self, don’t hide from collectors, they will just make things worst for you, majority (not all) of the banks may listen to our debt problems. No harm in asking them for terms. things are better of if they are talked over
3. I have yet to hear a bank lifting the police case, I happen to talk to someone who was arrested for a bounced check a year ago, when he went back to dubai he was immidiately arrested at the airport and sent to jail. he was there for 3 days and while in jail his friends managed to pay his debt (18K AED) and got a clearance from the bank but the bank did not withdraw the police case, and the guy still have to appear in court for his bounced check case and has to be detained to a few hours before being released.
4. Civil case threat is for real, being in jail does not mean that your debts are written off, you were jailed because of your bounced check, after your jail term the bank can file a civil case against you to recover the outstanding ammount and the civil case does not require a check to progress/move.
5. There is a provision in UAE law (I’m not sure about this, but I have read it in some articles) that you can file a case against a collector who embarass, disgrace or curse you. it is not a case against the bank but only for the individual collector who go beyond the ethics of collecting (its payback time
)
6. Thinking of hiring a lawyer for your bounced check? dont even think about it, it is a sheer waste of money as they will not do anything to help you out, they cant even talk in front of the judge during your court day!. Better represent your own self by answering the Judge’s question with honesty. don’t even think of telling false statements as they have a record of your transactions. Also, think about this, you can hire a lawyer but you cannot pay your dues? whom you are kidding?
7. To those who ran away, it is because of you why people like me who opted to stay and pay the money we owe from the bank are suffering, banks became strict in dealing with defaulters even if these defaulters have the intention to pay. Sooner or later, the law will catch up with you, you just made your world smaller by running away.
8. Jail is jail, you get some of your life’s priviledges taken away, but don’t believe stories about police brutality/maltreatment as they are not real or true (that is the case here in Dubai) Police and Jail officers are professional people, they treat everyone equal and always make sure that your basic human rights are respected. You have the right for food, medicine, sanitation, calls, visits, they allow you to buy provisions from in house grocery supplier (soap, toothbrush, toothpaste, telephone card, towel, slippers etc). I was in Muruqqabat Police station for 16 days, I never experienced or saw my fellow detainees hurt or maltreated by the police. I salute all the police there for respecting our rights as human being. If you have issues you can always talk to them and they are willing to listen.
those who opted to stay, I salute all of you for being brave, sooner or later these credit card debt trap will be a thing of the past. Those who opted not to take credit cards or loan, maintain your stature, do not take credit or loan.
A pleasant day.
I’m one of the guys that have almost same case. I work on dubai for 3 years and 2 months. after the project completed the company released me. I wanted to file my credit shield but one personel from collection and recovery department advice me that I don’t need to show my self to the bank just send to him all the document and he will file the application. So I follow his instruction and after a week before returned philippines I follow-up the status but no reply. After 6 month I received a mail that I need to pay my credit card or else I will put to jail.
What should I do on this matter?
Regards.
Jo
it is true.. if you enter in gcc country you will be detained in the airport. and put you in prison
Sam,
Saudi Arabia is one of the GCC nations and does work with its sister nations to share information and punish criminals. As defaulted debt is a criminal offense in GCC nations you may be arrested in Saudi Arabia, possibly at the airport, for the debt you owe in UAE.
Hi,
I was working in UAE 4 years back and my company filed a case against me and got me arrested after going through the legal procedures the court sentenced me two months jail. After that I was deported from UAE. I had some credit cards and a personal loan total of which is approx. 65K. Now I want to go to Saudi Arabia, will there be any problem.
Waiting for your response.
Sam
Hi Debt Prison,
I appreciate your concern for those people who have left UAE without paying their debts. I curse the time I went there to work! Anyway, like the others I have left unpaid credit card in UAE but now I am ready to face it. I have a not so huge credit card debt from RBS bank amounting to more or less 9K DHS. I need to come back to UAE soon and I want to clear out all my debts. I read the letter that was sent to you by from “aira”, I read how she was able to get in touch with RBS overall manager. i plan to contact RBS in UAE but do not know the right person to all. Would you be by any means give me some direction or contact person? I will appreciate your reply.
hugs,
alenn
Hi Jacob,
After the criminal jail term it depends in the banks if they want to take you to civil court or not.
It would mainly depend on the amount each bank outstanding from you. The reason being that the legal cost are very high. If out of 350 the number of banks are few then the will take you to court.
since u have no passport and i assume no money to pay of try seeing a debt lawyer or good luck.
Hi,
I have total bank loan/card debts totalling 350,000 and other private dues worth 200,000 for which I gave cheques. Spent most of it on medical treatment for family members. Now I am without a job but quite hopeful of getting some work very soon. I considered all options including going away. But I no longer have my passport. Banks and private creditors threatining legal cases within 1 week max. Tried hard to negotiate but private lenders not agreeable. Wanted advice on some points:
1) If bank does not file civil case after the initial charge of criminal check bounce, can the person be freed after completing his prison term for check bounce as bank is not pursuing civil case for recovery of loans/cards ?
2) Any other recouse / advice from you all ?
Rgds
Dear Debt Prison.
My question is almost the same as most of the blogs above.. Am a defaulter of Credit cards in UAE, though i was never when i was in UAE even for a single month..Now am back to india with outstanding left over on my cards, and its been 2yrs i left UAE..few banks are calling me for recovering the amount whereas am not in a position to clear the debts..Will any action be taken in India for defaulter in UAE?? Plz suggest me.
Ibrahim
hi Barry,
I worked in Qatar and had a loan of QAR 50,000. Had to leav qatar in 2009 without repaying it.
Now I want to go back to gulf. Can they put me in jail in Qatar or any other GCC countries. Their agents in India informed me i would be in jail the moment I enter any GCC country. is it true?