Unpaid loan in Bahrain.

Unpaid Loan in Bahrain or credit card like the rest of the GCC (Saudi Arabia, UAE, Oman, Kuwait) will risk your future.  

Expats living in Bahrain must understand the consequences of an unpaid liability. Below mentioned are the different stages of an unpaid liability in Bahrain.

Similar to expats in the rest of the GCC there is no question of naturalization in Bahrain. As a result, once the expats lose their jobs they have to move back to their home country. Majority of the people who are living and working in the Kingdom of Bahrain will avail of a credit card or a loan.They could have different reasons for availing these facilities. 

For example,

• Day to day expenses (credit card)
• House (Mortgage)
• Vehicle (Auto loan)
• Sudden medical expenses (PL)
• Marriage (loan)
• For work (business loan, or SME)

  These loans and credit cards if not paid as per the schedule or within the prescribed tenure follow are the possible repercussions. 

Cheque Bounce. 

The banks and NBFCs will deposit your security cheque. This security cheque has to be given to the bank as soon as you apply for any facility. It is very rare that the banks and NBFCs do not take a security cheque from you.

Criminal Case. 

As a result of the cheque bounce there will be a criminal case against you. Article 393 of the penal code mandates a fine or a prison sentence. In addition article 491 law of commerce the court will order the publication of the judgment in a local publication.

Unpaid loan in Bahrain can lead to a travel ban in Bahrain.

As a result of the criminal case the banks can and will ask for a travel ban on the customer. This is done for the purpose of safeguarding their money. This will include entry as well as exit.

GCC Travel Ban.

In addition to the travel ban in Bahrain the banks can also initiate a GCC wide travel ban against you. This simply means all access to the GCC (which includes UAE, Qatar, Kuwait, Oman and Saudi Arabia) is barred and even a transit flight through the GCC will have you detained at the immigrations.

Parallelly the banks will also employ third party companies, these can be call centres, BPOs, legal firms, collection agencies. They will have your details for years to come and are authorized to call you and visit you at your house. Your account will keep shuffling between these companies as per the bank’s instructions. 

Third party collection agencies.

These third party agencies cannot take any action against you in your home country but what they can do is harass and intimidate. Hence if you do not know your rights or the legal boundaries that the banks and their third parties need to adhere to, they will take advantage of you.

Since the banks do not have to pay these agencies upfront. The banks can simply keep giving your account to different agencies which means you will not be dealing with one person or agency forever. All of the agencies work on commission basis as a result they only get paid when you pay.

We can help you get out of your debt in Bahrain in the most reasonable way. Your dedicated advisor will help you understand your options. They can also answer any of your queries that you may have. Simply book your appointment to speak to your advisor and get a clear picture on your options.