Debt Management Cases in UAE

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Debt Management Cases in UAE

We understand that circumstances can change and that this can sometimes affect your financial wellbeing and capacity to repay your dues. If you’re struggling with your personal loan, auto loan, home loan or credit card payments, please reach out to us. We’re here to support you.

Our team will help you with tailor-made solutions taking into consideration your changed circumstances. We can make your repayment schedule manageable so you can settle your debts over an acceptable and agreed time period.

It’s important to take things in hand as soon as possible as non-payment and late payment of dues will result in accumulation of monthly charges and this can also affect your credit history with the Al Etihad Credit Bureau (AECB). On the other hand, timely payments will help maintain your credit score and avoid any further impact to your credit worthiness.

Please note that as per UAE Central Bank regulations, we are obligated to report all the accounts under debt to AECB.

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REASONS FOR THE TRAVEL BAN IN UAE

There are several grounds on which a travel ban may be imposed. The most common ones include:

  • An ongoing criminal investigation
  • Violation of immigration laws
  • Unpaid financial debts
  • Rent disputes
  • Employment without a valid work permit
  • Overstaying on the visa
  • Leaving the country without notifying your employer and cancelling the work permit
  • A global outbreak of a disease
  • An individual who has been deported previously by a competent authority
  • An individual who has faced a travel ban from GCC countries;
  • An individual who is involved in the activity reported by Interpol


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Frequently Asked Questions (FAQs)

The fact that debt collectors cannot put you in jail for unpaid debts in the United Arab Emirates is reassuring. They may still choose to take legal action, though, and they may even think about taking possession of your property or garnishing your income.

Debts incurred in the UAE are governed by UAE law, rather than English law. In the UAE, consumer debts owed to banks only become 'statute barred' (meaning uncollectable through the Court system) ten years after the default.

The UAE has a robust legal framework governing debt collection, primarily regulated by the UAE Civil Code and the Commercial Transactions Law. Creditors have legal recourse to pursue unpaid debts through various legal channels, including filing a lawsuit in the local courts or seeking arbitration.

In the UAE, non-payment of debt can turn into a criminal case, but there's more to it. While missing payments itself isn't a crime, bouncing security cheques due to insufficient funds can be. This could lead to a lawsuit and potentially jail time.

The answer to this question previously was yes, you potentially could end up in behind bars. However, a landmark judgement by the Court of Cassation means this is no longer the case. Business owners or individuals who fail to meet their loan payments will not face the risk of arrest.

You can also be imprisoned for three years and even after completing your sentence, you will need to clear your debts. What happens to unpaid credit card debt after 7 years in the UAE? Irrespective of the time duration of debt, you require paying your debt or the bank may take action against you at any time.

You may have additional debts, such as credit card and store card debts, pay-day loans, buy-now-pay-later payments, overdrafts, unsecured loans and water bills. If you do not pay these off, their cost can spiral and could lead to legal action or bailiffs seizing your property.

Alternatively, you may request the bank for a settlement, or you can approach a court of competent jurisdiction for voluntary settlement of your debts with your lender or commence insolvency proceedings against you as per the provisions of UAE Insolvency Law which applies to individuals in the UAE.

If an individual has a UAE bank loan ban, then he won't be able to travel any other GCC (gulf cooperation council) countries. The default of loan is criminal offence in UAE. So if the individual tries to leave the country, strict action will be taken for the same.

Therefore, the request for the ban is to recover the outstanding payments. However, the ban ceases to exist if the debt is repaid. The ban is imposed upon the request of the creditor.