Unpaid credit card in UAE

Unpaid credit card in UAE, and why its not advisable to leave it pending. If you live or have lived in UAE there is a 100% chance that you have a credit card. This article will help you understand why it is important to close your credit card before you leave the UAE.

There may be some who genuinely cannot afford to pay or close their credit card. At the same time there may be people who are intentionally thinking about using their credit card before they leave the UAE. Besides being ethically wrong, it is something that will haunt you for the rest of your life. 

If you don’t have the money and cannot afford to close the card, you practically don’t have a choice. But if  you intentionally plan to use the money and default on the payment,you are simply asking for trouble.

What are the possible consequences?

• Case in UAE, for an Unpaid credit card in UAE

The banks will file a case against you depending on the amount and if they have a security cheque. The bank has multiple options to file a case against you. That can initiate a PLE against you, they can file a criminal case, or even a civil case against you.

• Third party follow up.

Simultaneously to case filing the banks also give your account to third party agencies. These third party agencies can be,

• Debt collectors, 
• Legal firms 
• Call centres

They will be authorized to call, mail or even visit you. It does not cost the bank anything to hire these third party agencies. No matter what type of third party it is one thing common is that they are all working on a commission basis. As a result they get paid only when you make a payment to the bank.

The banks do not incur any cost to have these third parties on board, hence they can have them work on your account for years together and then give it to another agency.

• Travel ban because of Unpaid credit card in UAE

The banks can also request for travel ban against you because of the default. This means that you would be detained at the immigration. It applies to entry, exit as well as transit. In a few cases this can also result in a GCC wide travel ban. If you think you have a travel ban and need to check the immigration or travel ban in any GCC country simply click here.

• No PCC

Another 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.