I am a British expat residing in Dubai since 2011. I lost my job back in 2014 due to redundancy and tried to start my own business which ran until the oil crash at the end of 2015.
I have fallen behind on repayments to my banks and am now in a bother. I have finally found a job which would enable me to clear all the debts in a very short space of time as it is paying $1,000 a day in Iraq.
However, having emailed the bank to find out if they have placed a police case or travel ban on me I have found out that they have, so now I cannot clear my debts as I cannot work.
They have also placed a work ban on me, so how can I ever clear my debts?
Up until my company’s collapse I made my payments on time until falling behind by four months. I tried to speak to my bank and informed them immediately that I was out of work. Straight away the demands for full payment started. These people are vultures. I have committed no crime other than become redundant. As an honest 56-year-old man I want to work and clear my debt, not run like so many others have done in the past.
I would hope that the UAE does something about these banks, who will not only persecute a client but are quite prepared to ruin his or her life and not give them a chance to repay their commitments.
If there is someone out there who can help me please make contact urgently.
DA, Dubai
Debt panellist 1: Keren Bobker, The National's On Your Side columnist and an independent financial adviser with Holborn Assets in Dubai
Did DA make contact with the bank to advise them of his difficulties ahead of time or did payment cease without prior warning and communication? This can make a difference to the way a bank deals with a defaulting customer. Under UAE law a bank is able to take legal action after just a few payments are missed, usually three, and it is common to request a travel ban to stop someone from absconding as so many people have been known to do. Unfortunately those who have every intention of repaying also get caught in this net. I am aware that in some cases banks are very quick to act and don’t give their customers an opportunity to make restitution and that certain attitudes could be improved as an aggressive approach rarely yields a good result.
Has DA advised the bank that he now has the offer of work that would enable him to repay the debts? He would need to provide proof of this but the bank should be amenable and discuss this with him as lifting the ban would allow all parties to benefit. DA may need to make a gesture of goodwill by bringing payments up to date before the bank will lift the travel ban. It is for situations like this that I always advise everyone needs to keep an emergency fund equivalent to several month’s worth of outgoings in a another bank or outside of the UAE.
I have some contacts at his bank and would be happy to speak to them on his behalf to ask them to reconsider the situation. Obviously there are no guarantees but I would hope the bank would see that removing bans in this situation is their best course of action for the recommencement of the loan repayments and thus the repayment of the debts.
Debt panellist 2: Rasheda Khatun Khan, a wealth and wellness planner and founder of Design Your Life
Debt repayment can get messy here in UAE and you certainly need the support of the banks to see you through to the other end, especially when you are doing all you can to repay and your intention to do so is clear. Unfortunately many UAE residents have not experienced a supportive attitude from the banks, nor are they using discretion on a case-by-case basis but simply following processes and procedures. The contradiction of repaying debt and a work ban is where we need to start. There are two things that you can do:
1) If a police case has already been filed, I highly recommend you approach legal representation to get the work ban lifted. Presenting this clear dilemma to the courts against your police case shows not only your intention to repay but also highlights the position you are in. If you are unable to instruct a lawyer due to cost, construct a formal letter yourself and submit to the police station as your first attempt. Your intention here is to get the ‘work ban’ lifted.
2) Submit a formal letter of settlement including proposed monthly repayments and over what term, to your bank or banks. Submit the same formal letter you have sent to the courts or police station requesting to lift the work ban. This again shows your proactive approach and intention to settle your debts. Also submit a copy of this formal settlement to your lawyer for the courts or to the police station.
In the meantime use your resources to find new employment. It is unlikely the travel ban will be lifted so keep the search to finding your new job here in UAE.
The Debt Panel brings together four financial experts: Jamal Alvi, the chief credit officer at Abu Dhabi Islamic Bank (ADIB); Ambareen Musa, the founder and chief executive of the comparison website Souqalmal.com; Rasheda Khatun Khan, a wealth and wellness planner and founder of Design Your Life; and Keren Bobker, The National’s On Your Side columnist and an independent financial adviser with Holborn Assets in Dubai. Together they answer queries in a weekly online column to help readers better tackle their debts. If you have a question for the panel, write to pf@thenational.ae.
