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
Like I said before, even after receiving all this you need to submit the letter at the police station so that you have no trouble when entering Dubai.
Or else when you enter, they will arrest you and of course release you once you have shown the letter however that could mean you end up spending the night at the station or wait 4 or 5 hours.
Best is ask a friend or lawyer to go to the police station with the clearance letter and have you name removed.
Its better to be safe than enter dubai and go through the humiliation of being arrested.
Thanks Rim,
I did receive a closed case (approved to be dropped) from public prosecution with the file number. I also have a letter of clearance from Bank. All of them are telling me that you have nothing to answer now after possessing:
1. Letter of clearnce and to Public Prosecution indicating that the Bank wishes to drop the case
2. Letter for court to amend the filing
3. Approval of case being closed by Dubai Public Prosecution
After all this do I need to be worried to travel to Dubai?
I have also evidence of of money that has been transferred.
Let meknow please .
Thanks
Elli
you have a case for bounce cheque, then you need a clearence letter from the bank.
Once you have the letter give it at the station where they have registered your case. then your file will be closed.
Best is to send you lawyer, the cops sometimes may just put you in and then close the case next day.
Dear DP,
I have an outstanding debt from EMirates NBD bank back in 2005. I have not been contacted by them at all – although I always wanted to pay them their money. in Oct 2010, I have called them and paid all outsanding payments about 150K AED. Now I have received a letter tp Dubai Public Prosecution from Emirates NBD that the bank wants to drop their case as they get in agreement with me and that they received their money in total. My question is do you go to jail for bouncing cheque even tho the Bank has released their case? or you go to jail for debt?
- Debt is settled and bank send me a letter which was sent to Dubai Public Prosecutions
- Bouncing Cheque – not sure if I would go to jail even if all are cleared from the debt perspective.
Please advise as I am planning to go through Dubai in two weeks time,
Thank you.
Hi i’m Ali who was in dubai for last 7yrs. I had 6 credit cards from six banks including one non banking financial institution called Dunia finance. All in all my card outstanding is nearly AED 110,000…………. Emirates AED16000, RAK – AED 30000, Barclys – AED 20000, Najam – AED15000, ADCB- AED 25000 and Dunia – AED10000. Loan arond AED 25000.
Due to financial crisis i left dubai few months back to india and never want to go back middle east/GCC.
What can happen if i dont pay the outstandings? coz im not in a position to pay it. Getting so much conflicting reports about the banks and their actions. also about collection agencies. Banks keep calling my india number…what shall i do ….plz plz suggest.
hi,
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?
Kindly give an advice based on law and facts
Now i hav an offer from Dubai. I want to go there but the loan in Qatar is holding me back.
these collecters are real bast*&^s, if you wish to pay and clear they wil not give u time, they will keeps on torturing u. and makes u run away, that is the best solution – cheers to those who fled. do not pay any single fils to them, they might have already paid enough interest. nobody can tough you in your home land, only threaten, please tell them go to hell. just deny – statements without your signature cannot prove u guilty
hi,
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?
Just a word of advice.
All those who think that after you have served time for your security cheque bounce all is clear are wrong.
Your jail sentence is for bouncing a cheque nothing to do with your debt.
Once you serve your term the bank can file a civil case to recover the money. The judge then decides what you should pay and by when. in case you are not able to pay, again it become a criminal case and you may end up in jail or stuck in dubai with out a job and passport
Its upto the bank to file a civil case or not.
So do not think if you serve 3 month, all is over. Plus most people have multiple cards and loasn, your term or amount is not consolidated, each case is different sentence. Though your total can be consolidated.
Best bet get out. When the law does not help you correct, and you lose every chance of life and paying back then you apply the first law of nature, survival!
how come people default in billions like the govt and call it an adventure while the family in RAK which did not even have 1/10 the debt have to kill themselves.
Reading some of the comments it appears that many of us have failed in our responsibility to be responsible, and later reap the consequences. We get ourselves into such a mess and should not expect an easy way out. Everyone had the same temptations to take credit card after loan after credit card, while some were responsible enough not to fall into such dangerous patterns of borrowing and spending.
Now, there are two sides to every coin. Banks, governments and merchants have also been irresponsible in pushing these credit products on us. So they too are just as guilty as the careless borrowers. But the one difference is, the big boys know how to take care of themselves. The little guys need to take the same approach.
So what to do? Be resilient. The banks have comfortably washed their hands of the mess, while the collection agents take their place as the new sharks. Don’t worry about trivial things like bank statements. Your problems with the banks are over once you’re out of the country, and your problems with the collection agencies are a fiction. They pretend to threaten while you get scared in reality. That’s the wrong response. Ignore them, change your phone numbers, tell others in your family to ignore them and just get on with your life. It is as simple as that.
Start afresh, and don’t repeat your mistakes.
Hi,
I am feeling so depressed at this very moment. A lot of thoughts came into my mind to the point that I wish that I don’t exist anymore. I know it’s not a good thought but I can’t help it. I am in big trouble. See my situation is, I have an outstanding unpaid credit card from HSBC and allegedly I have an outstanding overdraft. I mentioned “Allegedly” because I have not been receiving my bank statements and credit card statements from HSBC for 8 months prior to my default in paying my monthly dues. I have been requesting them to furnish me a copy of my statements but instead their charging a fee for that AED50/- and they told me to just access my e-banking account. But the problem is my password has been reset and I need for them to activate it first. I kept on requesting them but my efforts were futile.
I was terminated last June 2010 due to financial crisis in the UAE. I was so sudden by the termination because I just came back from vacation then, a week after, I was terminated from work. That time I was not thingking clearly and my company told me that they will be cancelling my visa, so I have no choice but to leave UAE with the unpaid debts.
I know that they will be able to trace my address in the Philippines because I gave it to them. Never in my imagination that this things could happen to me. I have no intention of defaulting but it happened.
From the time that they first contacted me, I have been cooperating with them. I told them I am willing to pay but right now I have no capacity to pay so if they could at least extent some considerations or if we can come up with an amicable settlements. But first and foremost, I requested for my BANK STATEMENTS. I believe it is not right that I would be paying for things I am not aware or dont know about. I still have right and besides I have already paid for the months that I was requesting my BANK STATEMENTS.
Till now, my efforts are futile and my debts were already sold to BILKISH and they threatened to file cases against me in Dubai court and here in the Philippines with a possible garnishments of all my accounts and properties.
All I am requesting them is to furnish my BANK STATEMENTS first and not to penalized for the interest which kept accruing because I have been cooperating with them but their inacations were very adding burden to my increasing debts.
I am really desperate and I need a good soul to give me some advice. Thank you in advance and for taking time to read my post. God Bless!
Hi, all
before telling a story if some one has contact for a ADCB credit card settlement please let me know.
I had gone to another ME country from Dubai. I had credit cards from Citibank (Card + loan merged into one), FGB (Visa+Master+Loan), Barclays (Visa and Master), HSBC (Visa and Master), RBS, Emirates Islamic, Rak Bank, Mashreq bank, Noor Islamic bank, ADCB and Dubai First.
I had settld Dubai First, RBS and Emirates Islamic befre I leave UAE. Most of ther card I had initated for settlement but to doe over obliagations i faile to make regualr payments. once i left UAE, i kept on paying some or other every month then I stopped paying as I was not able to meet the obligations and I could understand that the amout i payed is gone in vain alawas charges gettign up. then what i did is stopped all payments. calls started to come my home in my home country I negotiated with each bank in every three two months.
FGB was very helpful among all theses, they waive almost 5000 in card 1300 in another card even waivd around 2000 in loan. mashreq and RAK was very difficult to handle but I could win even though a small waiver with them.
HSBC waived as per their calm AED 7000 and BB as waived some how. all these were one time payment. Now am stress free and have three to settle with ADCB, Noor and Citibank.
i left dubi with a card amount due approx aed 80,000 and loan 25000aed. now in india.what can happen? banks keep on sending mails…shall i reply them? one agency coolection called me in india…..shall i respond or have new number. because now i keep telling them that the guy they looking for is in uae. what happens if they come home!!!
please advice….urgent
Thank you so much Debtprison for your response. So you are telling me that the collection agency can not do anything? If they can not, why are they calling and using abusive langauge like garnish your assets like?
Rkhan…. no they cannot touch you in Canada
Hello
I worked in Dubai in 2007 and took out loans. About few weeks ago, one of the collection agencies in Canada is phoning me. ( I am in Canada). Can they do anything?
A real and fresh experience…from the jail
Hey guys I’m sure everyone in this page is longing for the real experience about BANK DEBTS here in UAE…then here you go…
I have total 8 credit cards and 3 personal loans from different banks here in UAE (ADCB,FGB,Mashreq,RBS,RakBank,Dubai First & Citibank), my all credit cards has a maximum credit limits of Dhs.6k aside from FGB which I’m having 2 cards Visa & Mastercard with Dhs.10k each credit limits. So for all my credit cards I’m having a credit limits of Dhs.56k. My 3 loans are totals Dhs.45k.
When I started collecting this cards way back year 2005 I’m earning Dhs.9k monthly +++ then due to financial crisis they terminated 60% of staff and all the balance staff like me received salary reduction of almost 60% of the salary, from Dhs.9k down to Dhs.4.5k monthly is my salary since beginning of 2009. Since then I got difficulties in paying my debts monthly I have to divide my salary in total 11 payables…
May 2010 when FGB collection agency (not the bank collectors itself) started to disturb me ang threathen me that if I’ll not pay today (take note they didn’t give me time to arrange money, collectors just simply say today) she will send CID. I told her I don’t have money and my salary reduced so and so… she has given me only 1 week to arrange money but on that time she wanted Dhs.10k as a final settlement of my all dues from FGB (take note my 2 cards with Dhs.10k each limit, they merge it to 1 limit only of Dhs.20k and my purchased debts was converted to EASY LOAN of Dhs.18k in total so I have to pay 1200 monthly for a period of 24 months, but I failed paying almost 4 months that time)…Anyway in short she given me 1 week grace period to pay Dhs.10k one shot and close the card/easy loans. I arrange Dhs.7500 and cdeposit the amount, it was thursday that time and I called here and inform that, that’s all my money I have, the next day Sunday she send CID in the office (I’m not so sure even my colleagues are not sure wether they are really a CID because they just introduced they were CID but without showing any ID etc…) Luckily I was off that time, but unluckily when my Manager came to know that he terminated me
…so I lost my job, I tried to manage here from supports of my friends (food and shelter) but didn’t pay any banks after that May 2010, since then all my loans get accumulated all the interest and penalties exceeded on my credit limits, in short if I want to settle my debts I need to have Dhs.100k to settle all, I got new job after 1 year, and because I really don’t have plan in running away in my debts, I went to the banks personally and ask for the settlement or anyways they can reduced the penalties and interest, any help I approached from the. Some banks are reply good some are not, usually they want me to settle the maximum credit limit so I can close the cards or balance amount of loans.
But…when I visited FGB the person there told me just give me your number and we’ll contact you, following day a collector from another collection firm called me and forcing me to pay Dhs.20k and settle the card, he told me I have police case already, I told him I just get new job I need good settlement plan, I visited their office also in Sharjah near Rolla because I’m sincere that I want to pay. He just told me no way they need only Dhs.20k or else they will file police case (I told to that Manager, you told me I have already police case and now you’re going to file again police case?)…
Anyway I didn’t pay coz I don’t have money…After 3 days the same guy called me and told me come to our office we got new settlement plan of Dhs.500 monthly for you, come and get the agreement letter. So I was happy to know that, so the next day I went in their office and met him, he asked me to wait and I waited for almost 2 hours, after 2 hours CID came and brought me in CID office then in SHARJAH CENTRAL JAIL…Court given me Dhs.1k penalty which I didn’t pay because I was already 10days in jail when the judge given me the verdict….
But the reality is…so many ladies inside the jail having 100k, 150k so and so amount bounced cheque and they’re serving maximum 3months in jail and clear the case…
I have so many things wanted to share because I met so many ladies inside the jail who has different experience and they just serving the punishment inside…
Can someone give me correct advise?
I have left the UAE with some debts, and I have the chnace to go to another GCC country, will there be any problems when I enter another GCC country. I am making arrangements with the UAE banks but I do not trust them not to file a case.
Cheers
JC
Hi DP,
I have an existing loan in UAE and unpaid credit cards with mashreq bank and first gulf bank. before december 2009 i never had any problem paying any of it. but i got terminated for redandancy reasons. i wanted to go to qatar so i could pay my loans and credit cards. will i have any problem entering qatar? please help as i am in the process of getting all the necessary requirements.
thanks and more power!
Hi Tilton, this is robert from Trivandrum. I owe the banks around Dhs. 110K. I was approached by local agents a year back. I threatened them to complaint to police for harasement. They said they will file a case with interpol, i asked them to go ahead. After that there is no contact. Don’t be afraid. Just tell them that you are not interested in paying.
Hi, it’s me again,
One company is trying to get me a visit visa to UAE, is it true that if I have a pending case due to credit card which I have no idea about then visa won’t be issued due to no clearance? And if visit visa will be issued then there’ll be no case against me and all the people calling the house are frauds, or there is a case and they will catch me when I’m there and put me to jail?my debt is 24k all interest as I have been paying and stopped when I came home last April 2010. Thank u
As a lot of people are not clear about the laws in the U.A.E let me give some info (trust me been i know what i am talking about)
1. Bank usually files a case after 3 months of default (though if you loose your job and your employer informs the bank about that then they would bounce your cheque even if you are making the payments on time.
2.According to U.A.E law Bouncing a cheque is a criminal offence. After the cheque is bounced the abnk would go to the police station to file the case once the case has been filled documents are requested from your bank (the bank from which you had issued the cheque) and then once the documents are recvd by the police they would immediately put a travel ban on you .(If you guys are scared and want to find out if you have a case against you contact any cheap lawyer in dubai tell him you just want to find out if you hav any case against you or not he will charge max 200dhms and tell you.
3.The only way you can get caught in dubai is while leaving dubai or if police runs a check on you which they do if there has been an accident case .If you are caught they will take you to the police station if you have a single case and the amount is less than 40k they will let you go by keeping your passport and will ell you to settle it with the bank .Incase your amount is above 40k then they will reffer your case to the prosecution .
3.PROSECUTION :- note the prosecution will not give you bail if the amount is above 40k .Understand the fact according to the prosecution its a cheque case and they are just bothered about that .You have signed a cheque you are liable to pay the amount on the cheque .They will not listen to what circumstances you are in or how much payment you have made (you can file a civil case for that but thats a seperate case and you will still be tried for your cheque bounce criminal case).Prosecution would then reffer you to the court .
4.COURT :- Usually for amounts upto 200k they wil ony jail you for 30 -60days.But note the jude will just ask you one question have you signed the cheque or not .According to the judge it is a cheque case and he ust wants tofind out if the cheque was signed by you or not as soon as you say yes he will pronounce the sentence .If you say NO the cheque would be sent to the forensic dept (police HQ) and their report will be submited to the judge ,then if he finds out you were lying he might double your sentence .
5.What Happens if you leave the country before you are caught ????
This is the best decissio you can ever make once you are out of the country they canot do anything to you.The max they can d is get a local collection agency to trouble you.Please note they cannot do a case in your home country against you as you have not signed any lega document in your home country (though if your home country is in the middle east then its a diff case ) .I am reffering to Indian,Paki,Phillipines,Srilanka etc…. .They cannot do a case in your home country .just chnge your number and forget about it .If they come to your place deny tell them you have never taken any loans .You can even approach the local police and tel them that they are troubleing you .
6.INTERPOL bull
They cannot involve interpol for such petty amounts .thats all bull.
I hope a lot of you might feel a bit relxed after reading my facts.
Hi DP Bary,
I came across your blog and as I have been reading I have seen a lot of similar cases.
I was in UAE for almost 3years and have this problem with mashreq that has been goin on for 2years now. It’s just frustrating as I havent used up the credit card for 3years and I have not used up all my credit limit but due to interest it went and soared high even if I was paying 3-4k a month. I have been in the Philippines for a year and they sent someone from a company here and said they are the collectors of the money. They told me to make the settlement, and I just informed them that I will not pay as it is purely interest, but will try to settle a lesser amount with installment or staggered payment.
They said that they will get back to me, I do not want this kind of problem due to my family’s standing here in the Philippines, please do help me out in this, thnx
hi barry,
my father left UAE in 2009 and left credit card debts there. He came back to the Philippines with out us his family knowing about the debt. Recently, 4 mos ago, he went again to another Arab country to work (not in UAE). Today we received a letter from a collecting agency, the letter head indicates a name of a lawyer and her address, telling us that we should pay the debt of about 24thousand dirhams..and contact them with in five days or else they will do legal actions. As a daughter, I am really worried for my father who is working abroad, maybe they will put him in jail. As a daughter, i want to help but i dont know where to start I myself also dont have a job. I saw the advise of MON and it would really mean a lot if you could give him my email ad… Thank you very much..
Hi am Tilton
I ve lost my job recently in uae and now residing in my home town in chennai India.I have a debt of almost 70kdhs throug credit cards and personal loans in uae. I did my best to clear but all went in vain since i am jobless till now.I get pressure from uae from banks like rak,abcd and dunia finance.I have tols them my problem but they dont seem to be bothered and insist.Of course i owe them monwy and was nevey a defaulter even a single time when i was in uae. They also kept on deducting insurance money without my knowledge. First i need a job to clear this off since am bankrupt and i struggle to serve my famly in first case. Pls advice