Unpaid loan in Saudi Arabia or any other liability can be a ticking time bomb against you. The banks have the authority to file a case against you which may lead to imprisonment. You are considered to be a defaulter in Saudi Arabia once you fail to pay the minimum or monthly instalments for more than 180 days from the due date.
What happens if you have an Unpaid loan in Saudi Arabia.
As standard procedure for Unpaid loan in Saudi Arabia the bank reports this default to the Saudi Credit Bureau (SIMAH). This will adversely affect your credibility with other banks as well and getting a new loan or credit card in future will be all the more difficult.
What happens when the defaulter is out of Saudi Arabia and back at their home country.
Unpaid loan in Saudi Arabia results in a cheque bounce cases in Saudi Arabia. Not in your home country, there will be no legal consequences in your home country. But if you so decide to work in Saudi Arabia or need to go back for any reason, you won’t be able to. As a part of the bank’s process, the banks will bounce the customer’s cheque and ask for the authorities to impose a travel ban on you. If left unattended then this could become a blanket ban that extends all over the GCC. As a result you cannot travel or transit to anywhere in the GCC.
Customers often complain of collection agency and third party harassment in their home country.
Another step that the banks take once your account is delinquent is that they refer the account to a third-party. These third parties are hired on a commission basis and are authorised to operate in your country. They will attempt to find you and intimidate you into making a payment. These third-party agencies can be a glorified call centre operation or collection agencies.
The basic tactics most of the third party agencies adopt is to,
- Threaten,
- Intimidate
- or harass you into making some sort of payment.
The collection agencies or third party call centres are well established in countries such as Egypt, India, Pakistan, Philippines. You will receive calls, Emails or even visits at your residence depending on your nationality. In extremely rare cases with higher out standings and multiple banks involved they can take legal action as well. Accounts on which legal action is taken in the home country is rare and needs a number of prerequisites that need to be satisfied.
