How banks will follow you home for your unpaid debt from the UAE, Bahrain, Oman, Saudi Arabia, Qatar.
By now it’s common knowledge that the loans and credit cards used in the GCC will follow you back to your home country through collection agencies for bank loan recovery in UAE. Here is how they do it and what you can do about it.
Whether your home country is in the USA or the Middle East, Europe, the Indian subcontinent, or Southeast Asia. This is practically normal procedure for the banks in UAE and Saudi Arabia and Bahrain. While Qatar and Oman still practice some form of restraint in this matter.
Most of the ex-pat populations in the UAE or for that matter the whole of GCC are comprised of Indians, Pakistanis, and Filipinos. When you compare the number of ex-pats from the west (Uk, USA, Europe) with those from India, Pakistan, and the Philippines it’s negligible as a result the number of people who default on loans and credit card bills are higher in these countries.
Sadly the institutions of law and order in these countries leave a lot to be desired. And the big corporations and MNC banks will always have an upper hand over the common people. And also they are slowly and steadily working towards having in place the legal framework to do so. Having said that as of now it’s not as easy to legally prosecute someone for default in another country. Especially if it was unintentional.
If we keep aside the HNI cases that are backed by Interpol in favor of large banks there are almost no cases that fall through the legislative filter that is put in place by a country to protect its citizens.
There may be a criminal case or even a civil case against you in the UAE. But that doesn’t necessarily mean that it’s possible to enforce it in an Indian court.
The banks their lobbyist are continuously working towards making the legal framework to be able to enforce in India decrees passed in the UAE courts.
Until then the bank will continue to take the services of collection agencies or debt recovery agencies.
These agencies for bank loan recovery in UAE are well within their rights to approach you; they have the authority to call, mail or even visit you at your home address (In Asian countries) and request you to pay the liabilities.
But that’s about it,
- They cannot attach any of your assets.
- The agencies for bank loan recovery in UAE cannot freeze your current salary account.
- They cannot file a case for your default in the UAE or Saudi Arabia or any country in the GCC.
- They can simply request you to make the payments.
And Because of the weak privacy laws in most Asian countries, the agencies for bank loan recovery in the UAE age can get away with harassment. But the good news is that as a citizen of your country you have rights too.
- You have the right to ask for detailed documents and statements. And also ask for the breakdown of the liability. So ask for it.
- You have a right to see the authority letter from the bank authorizing that particular agency.
- If you cannot afford to pay at the moment you can ask them to get in touch with you at a later date.
- They cannot harass any of your family members or neighbors.
- They cannot discuss the details of the liability with anyone else but you.
- If they continue to do so you have the rights to file a harassment complaint with your nearest police station. In order to do so make sure you have taken the details of the collection agency that has approached you. Also, take the name and number and address if possible of the agents that are doing so.
If you have any further queries or wish to close your liabilities whether Credit cards, Personal Loans, SME, Mortgage, or business loans with any bank or NBFC within the GCC, please feel free to book your first free consultation on our Home page. And we will try and guide you towards the best possible option for you.
