I have been working in the UAE for the past nine years and have had credit cards with two banks for the past six. I am behind on a couple of payments as I went to my home country to get married and was out of the UAE for three months. In total I missed two months of payments. Now the banks are calling me daily, telling me they will file a case against me. Why can they not wait a week for a payment? How do I stop them from chasing me and filing a case? RR, Abu Dhabi
When a person takes out a loan or a credit card with a bank, they sign a legal agreement that sets out the terms of the contract and details when payments must be paid. If, therefore, someone does not make payments for two months they are in breach of the loan conditions which, in the UAE, is a criminal offence. If money is borrowed, there is a moral obligation to repay, as well as a legal one, and if people fail to pay their debts it puts pressure on the whole UAE banking system and good customers also lose out. If payments have not been paid for more than two months and the bank cannot see that any steps are being taken to make any payments – even a partial payment helps – then I would expect them to take further action to recover the debt, especially if it looks as if someone may leave the country.
The only way to prevent further action is to make a payment, for at least part of the debt, so that the bank can see that the borrower is intending to repay their debts.
Keren Bobker is an independent financial adviser with Holborn Assets in Dubai, with over 20 years’ experience. Contact her at keren@holbornassets.com. Follow her on Twitter at @FinancialUAE.
The advice provided in our columns does not constitute legal advice and is provided for information only.
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