UAE loan shark victims: abused and treated unfairly

Maria provided her lender with a blank cheque, which he then filled out for triple the sum she had borrowed.

DUBAI // When Maria borrowed Dh5,000 from a black market lender last year, she did not expect him to deposit the blank cheque that she presented as a guarantee.
Maria, 40, whose real name is being withheld to protect her identity, was asked to provide a passport copy with a visa page and a signed blank cheque. The loan was for Maria's colleague, but the documents were Maria's.
The Indian money lender, who worked for a Dubai bank, charged 15 per cent interest so the loan amount plus interest totalled Dh7,500 by the time it came due.
"Every month, my colleague and I paid Dh1,500," said Maria, a sales and marketing staff member at a Dubai-based bank. "My share was Dh700 since I only got Dh2,000. But there were times when my colleague was unable to pay him on time.
"It got to a point when I started receiving threatening text messages and phone calls from this Indian lender. He's so rude."
The lender often threatened her with a police case. "When our payment got delayed, he would call or text me so many times," Maria said. "He'll say or text something like 'see you tomorrow at the police station' or 'I'll deposit your cheque'."
Eventually the lender wrote out the blank cheque for Dh15,000 and deposited it. "I was not able to stop him from doing it," she said. "I paid the final payment and settled the issue with him."
But the lender continues to victimise many expatriates of different nationalities, Maria said.
"I just last week heard that a friend had borrowed Dh5,000 from him," she said. "He's being financed by someone and has been lending money for the past four years."
However, another expatriate, Dave, who asked that his real name not be used, was more sympathetic to money lenders.
"When we're hard up, there's no one to approach," said the 32-year-old waiter at a coffee shop in Dubai. "They're willing to lend us the money so it's just right for them to charge interest."
Dave said he could not make ends meet with his Dh2,500 salary since he had to pay Dh500 for a bed-space in Satwa, and sends Dh1,800 to his family in the Philippines. Whatever tips he gets go towards his daily expenses.
In February, he borrowed Dh2,000 from a Filipina who works as a housemaid for a western family and had several part-time jobs. She asked for 10 per cent interest, or Dh200 per month.
Dave trusted her with his ATM and personal identification number. Every month, the Filipina would withdraw Dh200 interest from his account.
"I'm still saving up to pay the principal amount," he said. "Meanwhile, I'll just pay her Dh200 a month."
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