Unpaid Credit Cards and Loans in the UAE, Saudi Arabia.
If you have an unpaid credit card or loan in UAE or elsewhere in the GCC is always a better idea to close them and not simply pay the fine. Here are the top 5 reasons why?
1. Paying the fine in court or at the police station will not resolve your liability.
Unpaid Credit Cards and Loans in the UAE will most probably result in a criminal case (cheque bounce case). And it’s a popular belief that your loan or credit card liability is automatically closes once you have to pay the fine. This is a huge misconception and needs to be clarified to the people. It is a penalty fine you pay to the courts. And not to the bank. It is only the criminal case that is closed when you do pay this fine the loan or credit card liability is still unpaid and pending. to find out what your best options are to close your loan or credit card in UAE book your first complimentary consultation by clicking here.
2. You always stand the risk of (travel ban) detention at immigration due to unpaid loans in UAE.
The cheque bounce will eventually result in a travel ban on you which can either be restricted only to the country of the facility (credit card or loan) availed from or can cover the entire GCC. if this does happen you will be detained until produced in court in front of the judge whenever that shall be. In such cases, you can be detained even if you’re in transit & have a connecting flight to anywhere in the world.
3. Unpaid Credit Cards and Loans in the UAE will Hurt your Credit Score.
All over GCC, just like any other country in the world where you fail to pay back liability or installments your credit score directly takes a hit. This will reduce your chances of getting that new loan to reschedule your ongoing loan payments or credit card payments, and like always stay ahead of your finances and if you anticipate a payment failure plan accordingly so that you have made arrangements and are ready for it.
4. Collection agencies and third parties in your home country.
Most banks in the GCC especially UAE and Saudi give their NPA or unpaid loans and credit cards to follow up in the ex-pat’s home country. And there are several of them all over the world that works on a commission basis, which means whatever amount you pay whether big or small X amount of that goes to this third party. Obviously, it does not cost the bank any money to have these collection agencies call or visit your house. Although there are rules and regulations in place to protect your privacy and safety the reality is far from it.
5. Unpaid Credit Cards and Loans in the UAE is Closing doors to opportunities.
The majority of the ex-pats in the GCC especially UAE and Saudi Arabia are from third-world countries like India, Pakistan, Philipines, Sri Lanka and other similar countries where the average pay for a similar job profile is never possible to match. This results in the majority of the ex-pats finding it difficult to land a job in the same industry that pays as well. The sad truth will remain that employers in these countries won’t be able to match the salary offered by companies in the GCC.
