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
Hi
I am facing same credit card payment problems, just today morning I got a call from Barclays Bank asking me to visit their legal department to discuss about my credit card outstanding AED 6000. I have been paying every month, but not sufficient enough for my minimum because of the interest. I need an advise, if should I visit the bank as they requested, as I am scared that once I’m there they will
just put me directly to jail.
I would appreciate if anyone can give me an advise, I’m just too scared now.
Thanks
Emma
Hi to everyone,
For the lack of substantial time, (I’m just on a coffee break) I will just touch on 1 issue here that may shed light to a lot of readers, i.e. “Would it be legally possible to still file a case, civil or criminal, in the Philippines for loans/debt incurred here in UAE?”-In answering this question, I have to distinguish whether its a criminal case or a civil case. If its a criminal case, definitely the answer is NO!In most, if not all countries, they treat criminal cases as “jurisdictional”-meaning you will incur criminal liability only within the jurisdiction of the country where you commited the criminal acts. In this case, non-payment of credit card or personal loans, and presumably by issuing a cheque as pre-condition for the its approval. But outside of that country, you are treated as if you’re innocent. So if you’re being harassed in the Philippines by some unscrupulous people claiming to be authorized collector, report them to police authorities or NBI so that appropriate charges can be filed against them instead. Harassment or blackmail is a criminal offense in the Philippines. This will put to rest the issue.
While for civil case,( generally these are those that took the loan without being asked to issue a cheque as security), the legal basis in filing a case against you even if you’re already in the Philippines is spelled out in the contract that you signed with the bank. If there is a stipulation that you agree to be bound by the legal effects of such contract or to that effect, regardless of where you are presently residing and therefore authorizing any bank representative/branches in your country with respect to the collection and payment of your debt, then filing a case for collection of sum of money is legally possible. It is worth-mentioning though, that imprisonment for non-payment of debt in the Philippines is constitutionally prohibited. Therefore, no matter how humongous your debt is, there’s no way you can be sent to jail mainly due to non-payment of debt. However, it is not entirely absolute to think that one can not be imprisoned on this basis alone. Lawmakers in the Philippines had designed and passed several laws to get around with this constitutional prohibition. Few examples of this crimes are the bouncing cheque law, fraud or estafa, credit card fraud and so on. There’s a long line but it would entail substantial amount of time to discuss these issues altogether. Hope for now this helps.:)
Hi DP,
I have a lots of frends asking me that, how many months before a bank file a case againts a person if they dont pay their credits cards.. More of them not paying more than a year already.
Im just lucky that im not one of them, having that problem.
thanks,
julie
Hey Rod,
I get a lot of visitors to this website from the Philippines and most of them have debt from Dubai/UAE. The question I have is this… Can a debt collection agency in Dubai actually get a court in the Philippines to take your property or even arrest you? I have not been able to get a clear answer on this… though I do know that Dubai creditors hire debt collectors in the Philippines to harass debtors. The question is… ‘Is there anything they can actually do to you if you remain in the Philippines?’
I don’t know the answer to that question because I am not familiar with the laws between these two countries (extradition) etc.
Let me know what you learn so we can help others…
Barry
Hello,
I also have the same problem with my unpaid credit card,I already got notice from Mashreq bank demanding me to pay 12,000 dirhams,in 5 days they want my payment.The problem here is I am currently jobless.Do I have to go to prison?The notice also states that they asked the help of COURT SHERIFF to seize my personal properties.What would they do if they’ll find out that I do not have legal properties here in the Philippines?I am confused and I need your advice on what to do.
Thanks and more power…
Hi DP,
I was working in Dubai in since 2004.Went back to the Philippines due to some family matters. It was impossible for me to go back as my employer only gave me 1 wk leave and said max of 2 weeks. After that i didn’t contact them already.
I have an existing credit cards unpaid balances. not too sure of the total amount, but more or less AED 25000. and I was so scared amd thinking how am i going to settle that amount? knowing the fact i cant go back to uae as well. My employer told me that they’re cancelling my pass already and i am going to be black listed as i havent surrendered the work pass card and my passport with them.
2008, i managed to find a job in singapore. unknowingly, there are credit card collectors in the phillipines that actually harrasing my family. They introduced themselves as partners of Dubai banks in the philippines, and that they are incharge of collecting my credit card debts . These guys are asking about all my information : location and where im currently working.
I fear that they might arrest or report me to singapore government regarding this matter. My question now is/ are collectors supposed to harassed your family because of credit card debts, the fact that they got nothing to do with that at all as that was mine. can they file any case for me hire in singapore? from what these guys are doing, i lost the interest of contacting them. how will i deal with this? can you give me some advice?
Thanks in advance.
Zen
Leo,
I think that’s a decent offer to get started with. I’d talk with them and see if they will accept your offer, with an agreement to pay more later. Often these collectors are bluffing when they say you must pay the full amount in full now. So like Benedict, how had a question before you. I would do my best to negotiate a payment plan that you can actually afford. Otherwise they could get up getting nothing. What good could that do either of you? Keep me posted on the progress. Thanks for sharing.
Barry
Benedict,
I think your best bet is to try and talk more with the creditors. It would be to their advantage to accept this payment, and possibly more later. I assume the increase in the debt is due to interest charges and such. I wouldn’t offer them anything unless it was clear that it wasn’t going to court and law enforcement would not be involved. I would continue to try and negotiate.
Barry
Dear DP
Mashreq bank is calling me to settle my debts. They are asking 6500 to settle but as of now i don’t have that money because i am paying also my other credit cards. Do you thing that they will agree if i pay Just pay 1000 AED this month because this is the maximum amount that i can produce right now.
Dear Prison Debt,
Hi, I need some advice. Recently I went to NBQ head office and tried to negotiate on my credit card which I was unable to pay for almost 2 years. They said that they don’t offer a easy payment scheme to non local and refuse to reduce the amount.They said they have filed a case against me and they have given me the case number. My credit limit is just 5000 dhs and they are asking for 16000 dhs in one payment only to clear the case. Now i was planning to come forward to the police maybe they could help, i can pay my credit limit only but there is no way that i’ll be paying 1600 dhs.Do you think this is a great move. Thanks and God Bless
Nicole,
Iara’s email is no longer active. Nor have I received any response from other comment authors whom I’ve emailed. I cannot give out emails as they are private.
You should be able to re-enter UAE if your passport has not been blacklisted. If it has, this means that the court has issued an arrest for you over the debt. The real question is…. HOW CAN YOU FIND OUT IF AN ARREST WAS ISSUED FOR YOU? I honestly don’t know the answer to that question. You could start by attempting to contact UAE immigration to discuss if you are eligible for re-entry.
If you are still eligible to return to UAE for work, then you must work hard with your creditors to find a workable solution. You will need to communicate with them, daily if necessary, to work towards a mutually beneficial outcome.
Let us know what you decide.
Barry
Hi Barry
Can i have laras email so i can tru to send her a msg as well.
Any comment or solutions for my query??
Thanks..
Nicole
Hey Nicole,
I tried emailing Iara but got no response from the attempt. I don’t think her email works any longer.
Best, Barry
Hi Barry,
Yah, the agent actually told that he’s from citibank. Clueless, my aunt just told him that they no longer have any communications with me. I also advised her to continue denying where am i right now. After that incident.. Honestly saying im having sleepless nights (or guilt conscience maybe). I actually have 2 credit cards and loans from nbd and citibank.
Im actually out of the country for the last 2 yirs but i do visit phils every year without having any hassles.
Im just so afraid that they will just be able to locate me and just send me to jail.
Can u please ask lara for me if FGB is offering that settlement plan even outside dubai??
Thanks for listening Barry.
Hey Nicole,
I’ve sent Iara an email to make sure her address is still working. I’ll get back to you on that once I find out. So your creditors from Dubai have sent debt collectors to your home in Manila, Philippines? That is crazy. Are you sure they were working for the creditors in UAE?
Barry
Hi DP,
I have read these credit card debt articles and I must admit that i am one of them. i have this credit card debt from citibank and nbd in UAE. Before, I was able to pay them every month sometimes more on the minimum payment. Around Aug., 2009, I have left Dubai because I lost my job. My officemates were telling me that the bank keeps on calling and calling in the office and they didnt say anything but to tell the truth that Im no longer part of the company.
Now, Apr. 11, 2011, one agent (dunno if its from citibank or a collecting agent) went into my house in Manila to threaten me that they’re just giving me 4 days to settle the debt. I am currently jobless right now and I’m planning to go back to Dubai because of a job offer.
Should I be able to enter UAE peacefully again or they will catch me because of my debt??
Kindly give me the email af IARA and the other Filipinos who is facing the same problem as mine.
Thanks.
Amira,
I am not well versed in the laws pertaining to debt collection in the UAE. If you are making payments of 90% I wouldn’t think they would attempt to place you in jail.
If I were you I’d try and communicate with the debt collector daily if necessary. If they think you are paying all you can afford to pay then they may cut you some slack. It might also be a good idea to speak with a law enforcement officer and ask them what they think. That might can help you as well.
How are things in UAE… is it still growing like crazy?
Barry
Hi Debt Prison
Debt collectors are imposting payment for me. An amount which I can’t afford to pay all.But I am trying my best to pay an amount at least 90% of the imposted amount every month. There’s a time I failed to pay on time and they told me that they will forward my case on the local police on my hometown. Do the debt colelctors have the right to do so even if I am paying.??? thank you
Instead of understanding the customers problem the banks are engaing collection agencies to recover the the money. 90% of agencies are really not professionals and third class gundas. Banks should bring the customers to thier desk as should assistant them by providing a settlement plan.
hi everyone.
I accidentally stumbled on this website as a result of i don’t know… feeling of hopelessness maybe?
I came to Dubai to be with my family, 2 years ago I found out they were waist deep with credit card debts and loans. And then December 2009 happened.and with it came the recession. While I’ve been doing my share to help them out of this mess. My dad alone has like AED 250,000 worth of credit card debts to settle, excluding the loans from the banks. and because of harrassments from collectors, they were forced to take loans from other people with interest ( 10%) which did not in any way close a single card. Now, to say that they are neck deep in debt is an understatement!
While I’ve been doing my part to be a good daughter to help them out of this situation, I sometimes feel that my life has been put to a big halt. i took loans to close some of the cards and i applied for credit cards to cover for my dad’s other cards. I give them half of my salary every month. most times, more.Still my salary and their salary is not enough because instead of getting a complete salary every month, penalties from bounced checks from bank loans and everything are eating their salary before they can even get hold of it.
I try not to complain,because after all, part of the reason why they have these debts are the car that I enjoyed using as gift after graduation from a prestigious and expensive university, a newly renovated house and a once comfortable life.
But we have limits.My mom said how can I complain when I’ve been here for 2 years only, I was mumbling about not wanting to end up in the same situation as them.as it is I have 2 loans and 4 credit cards and i don’t wish to add more because in my opinion, this is all my salary can take.And because most times, i give them more 70 to 80% of my salary to them.
why?
because one minute i will get a call from my dad that Mashreq collector is in his office, barclays collector is in his office, FGB collector is in his Office, HSBC collector is in his office…… and i can’t say no. Mashreq had the audacity to call for police and embarass our family for a meer 6 thousand credit. Because I can’t find it in my heart to say no, I end up being unable to pay my cards as regularly as i would have hoped.
I feel so frustrated and depressed. I am in my early thirties I feel I cannot abandon them in this situation. although they keep telling me that its high time i get married, I cannot sem to process it in my head even if I wanted to. How can I? I have plans for further studies in the United States, I had to put it on hold because I can’t afford to save any money and all i can ever do is plan and plan and plan.and nothing ever happens.My frustrations are building up. While they are not obliging me to help,it has become mandatory because my God these debts just keep piling up instead of going down!
I feel.like I am crawling in a dark long tunnel and the light is nowhere to be seen. Debts has taken its toll on my family. Gone are the loving happy days, because we are all highly strung on how to make ends meet. Stress is coming from all sides. I have become a sour faced girl, my smiles have become so rare. i am a manager and as if managerial work is not stressful enough, even from work, my dad’s collectors are calling ME?!
I feel i am nowhere near my dreams and accepting that somehow these dreams have to be temporary put on hold,its not an easy process. I wish it were easy to give up on your dreams with just a flick of the hand.Giving them up is a slow process for me.Thre are negative notions in between and the reality hitting me hard in the face with these amount of debts to pay, do i even deserve the right to dream them? sounds melodramatic i know but this is my reality.And I know I cannot let my parents down.
Hi DP,
I just read all the comment regarding credit cards debts same as here. I just like to ask if i can pay only the credit card limit not including the interest? Because I was planning to pay it to get a police clearance. Hoping for your immediate response. Thanks!!!
f.p.
I don’t know! Sorry but you’ll need to research laws for those two countries and extradition treaties and such. Sorry!
Dear bary
first of all thank you for your useful website which aim feeling very happy and save to read it.i need your advise
ive been working in dubai as sales manager for the past 6 years and i was earning 20000 dhs a month and have a very good banks credit history after the crisis i end up without job and have a lot of credit cards and loans which i recently stopped to pay them last 5 month ,so i save my self to not go to the prison and i run away to other country.aim from jordan .at the moment i cant pay for any of this banks and aim afraid from the dept.. collection in jordan to sue me a case ,my question can the dept.. collection file a case in the court even if aim out of home country?and incase if i renew my passport after 2 years would the embassy will know that i have some case in jordan and they will hold my passport as aim planning to live in eu?and regarding the non criminal certificate is the court in jordan will flag my name? because i need the non criminal certificate to done my citizen application i the future .aim afraid from the embassy in the future to not renew my passport or to not issue for me a ncc.i need your help and advise regarding that because aim afraid. . please email me back
Regards
f.p
Regards
Hi DP – I have left Dubai but not for reasons of Debt – I did lose my job and chose to leave on my own accord. I have a sizable credit card bill with RAK bank but, unlike others, I have been paying it by sending money from overseas to friends in the UAE to deposit it on my belhalf, or simple sending in a check. On friend was late only one one payment, but made it a few days back. Its a month late – but in, and I already have the next minimum to pay. I am Australian but I am in the UK as its where my wife works. Last week RAK called my father, in Australia at all times of the night. Hed informed them I am still overseas and he had not heard from me as to my latest whearabouts – I am traveling through Europe, plus to be fair he was not going to devalge any information.
They told him if he loves me, he should make contact with me as they are going to jail me, WTF????????
My immediate impulse is to fly back and bounce this guy – however I am contemplating putting fear into him by suggesting to my father he get the guys direct contact, I call him fro Europe, and inform him, if he makes one more call to my family in Australia I will simply pay them nothing at all – I am happy not to go back to Dubai if this went furhter, and am out of there. Do you think its sensible to advise them all my current details in EU or just send the money as I have been? Do banks such as RAK chase debt in home countries – and if so, I would be certain your home country laws for harassment etc would apply is this correct?
Thanks in advance
Greg
Hi DP, I am in a similar situation and considering forming a harassed bank customers forum in Dubai. lease advise interested readers to contact me on traderdxb@gmail.com.
If we have enough people we can deal with these banks effectively. Strength in Numbers!
Also. DP, can you help me get those numbers from Lara please? You can send her my email too if you think it’s ok.
Regards
TD