UAE bank harassment in India

UAE bank harassment in India has increased over the years. A high number of UAE expats that are now living in India have had to face this harassment. The banks in UAE have commissioned the third party agencies in India, Pakistan, Philippines, and other such countries. 

Why are there so many harassment cases in India by UAE banks and their agencies?

MID 2000’s is when the banks in UAE started to employ third party collection agencies in India. That is the time when there was practically no law that governed collection activities. As a result these third party agencies were able to  get away with anything. 

Slowly and steadily RBI started to introduce laws in an attempt to weed out any illegal practices that used to be the norm. These rule and regulations were based on the laws that already existed in the western countries. 

If we were to compare the laws in western countries and the countries in the east such as

• India
• Pakistan
• Philippines 
• Sri Lanka
• Nepal. ETC

you would see that the privacy of the people is of utmost importance in western countries. Even today the laws in countries such as US or UK does not allow the banks to even call without prior confirmation. Compare this to the situation that a defaulter may face in countries such as India, Pakistan and philippines. 

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Are UAE banks allowed to call and reach out to collect from Indian citizens in India ?

Since January of 2022, UAE central bank has forbidden the banks and their subsidiaries to visit customers for pending dues. As a result any visit to you at your workplace or residence is illegal after Jan 2022. 

The only legal action the UAE banks can take that will affect you even if you are out of the country is an immigration ban. This affects you even if you are traveling through UAE. We can help you check the immigration ban or travel ban also known as visa ban in UAE. Simply click here to check your travel ban status online. 

Does the UAE bank have to adhere to the laws in another country if customer is in their home country. 

UAE banks have to adhere to the laws laid down by UAE as well as India because the defaulter has crossed borders. Hence when the Indian law says that you cannot collect from the expats. Majority of the expats are not aware that foreign banks are not allowed to collect on their dues from Indians within India. This is also reflected in the laws that regulate remittance of funds. 

As a result the loophole that UAE banks and their agencies use is that they are mediators, simply reminding the customers that they have dues pending and do not physically collect any amount from the customers.

UAE bank harassment in India may include,

• Contacting your friends and family
• Contacting  your current employer in India.
• Disclosing your loan details to Family and fiends
• Defaming you, harassing them and constant calling them are some of the tactics they use.

 This is absolutely an illegal pratice, you can take the agency and bank to court for harrasment and mental torture. 

You can surely reach out to your nearest police station and complaint against them. A simple call from the police that there is a complaint against them (the third party agency) will suffice. Once they get a call from the local police station they will stop calling and chasing after you. If you still have any query you can book your first complimentary consultation and we will get back to you. You can also message us by clicking on the whatsapp icon below.