Leaving UAE with credit card debt

Leaving UAE with credit card debt 

Leaving UAE with credit card debt, why its not advisable and what are the possible consequences. This article is for you if you are leaving UAE with credit card debt or have already left UAE with pending liabilities. 

If you are in UAE and considering leaving UAE with credit card debt then the actions taken by the banks will effect you more if you are in UAE. For example the criminal case to travel ban, we will further do into the details below.

On the contrary if you are already outside the UAE the actions that banks take against you may not have as much effect on you. For example collection agencies that bank employee to try and get money from you.

Actions that are most important to you if you are in UAE.

• Criminal case in UAE.

Once you have defaulted on a loan in UAE the banks will proceed to depositing the security cheque. As a result of the cheque bounce the banks will file a criminal case against you as it is a criminal offense under UAE law.

Now there have been changes to the law in January of 2022 under which there needs to be criminal intentions proven. For example signing the cheque in a way that it does not pass, withdrawing the funds before the date on the cheque. Because of this banks cannot file a police case for a cheque bounce but will proceed directly to court. This is known as a cheque execution case or PLE filing (procedures of litigation and filing). 

• Travel ban in UAE or even GCC.

As a result of the cheque execution or criminal case there will be a travel ban against you. Which means you cannot enter or exit UAE. A GCC wide travel ban can also be imposed in some cases. The banks in UAE manually select these accounts where they want to impose a GCC wide travel ban. 

If you’re looking to check your travel ban status to check if you have any case registered against you. Simply click here to upload your documents. 

If you are Leaving UAE with credit card debt some Other repercussions or actions that bank takes and may or may not have much of an impact on your life if you are outside the UAE.  

• Lowering of credit score.

Most countries have a centralized banking system which keeps track of liabilities and their repayments. Under this system every individual gets a credit score and this is reflective of your repayment. A similar system is the Etihad credit bureau for UAE which although new is at par with the ones in other countries.

• Interest and charges on accounts after Leaving UAE with credit card debt.

The banks will continue to add interest and charges and late payment fees on the pending amount. This can grow very quickly especially in case of credit cards.

• Insisting on legal charges incurred by the bank.

If the banks proceeds with a civil case in addition to the above the charges incurred by the bank will be passed on to the customer. 

• Employing Collection agents or third party agencies.

UAE banks will take services of collection agents, law firms and call centers. These third parties work on a commission basis as a result every time you pay a part of it goes to them directly.

• Legal Notice for Leaving UAE with credit card debt.

One of the first actions that the bank takes is to send a legal notice to the customers. This does not always mean that a case has been filed. Many times it is simply to convey intent that the bank will file a case in future in an attempt to recover their money. 

Sadly this is the law of the land and it allows banks and their subsidiaries to get away with it. As the state of UAE does not offer citizenship no matter how long an individual may live there. Hence in order to safeguard their interests and investments the laws are in the favor of the country’s economy. 

• No PCC

Another  important but not an immediate consequence that you may face is not being able to get a PCC from the UAE. Below mentioned are a couple of instances where you would need a PCC from the UAE.

PCC required by another country for PR. For instance countries like Canada will need you to provide a PCC from all the countries where you lived in for more than 6 months. As a result if you have a pending case against you in UAE you will not get a PCC. 

PCC for a new job. Many companies as a part of their process ask for a PCC. Either in the UAE or outside.

If you have a pending liability in UAE either credit card or loan or any sort and want to close it we can help you close the same. You book your first complimentary consultation by clicking here. 

If you have any further queries or questions you can book your one complimentary consultation by clicking on the button below, simply select your date and time with other details and we will get  back to you.

Leaving UAE with unpaid credit card debt.