I had a bit hit financially in Dubai and failed to service a C Card debt that rose to 120K AED. Though Im working out of AU, the banks were badly harassing my family.
I notified them to say as I know for a fact this is not legal I will report them to Australian Authorities even though they are foreign as harassment is a crime.
I also told them due to this I will pay them nothing, I have no intention of returning, I know my rights and know also no company in Australia wanted to buy UAE Debt.
Though for professional reasons and clear conscience I did have every intention to pay.
Some years later I was ed by Collector 1. Told them the above offered an payment plan and on banking the first payment the bank refused and demanded the lot.
I stopped all communication.
A year later collector 2 ed me accusing me of no attempt to service and sent a letter of demand for the amount with a threat of interest by email.
I advised them all of the above and I will say they had a much better and quite proper approach, for a debt collector in the UAE.
I told them the bank were impossible to work with we discussed some arrangements and again all went south.
I recently received a nasty letter from them saying I had 7 days to settle or there will be substantial interest added.
I do understand my security check has been banked and there is a police file against me.
My years later have been slightly more fortunate to a point where I have saved some lump sum capital.
I have made them an offer to settle in one lump sum, approx 45 percent less than the amount before interest and they have advised me, both the collector and the bank, that they will accept it if paid within 10 days.
They also have said this will be full and final payment and a clearance letter will be issued- but they do not advise the Police or Immigration of this, it will be on me to do so.
My question therefore is:-
With a letter from the bank confirming they accept one lump sum substantially reduced as a one off payment to clear the debt, enough to relieve me should I pay this sum?
Is it possible for the bank to take this and not close the case?
If the bank issues the clearance letter and a friend collects it on my behalf are they able to advise the authorities that any claim against me is now clear?
Is this a suggested way to close an old debt, as I cannot afford UAE legal representation so took the job on myself.
Thanks in advance
It seems as though you have done your homework, so to speak, in trying to clear this matter up.
A couple of thoughts come to mind here.
One is that you are correct if you do not pay the debt, unless it is sold onto a collection agency in the country you are living, and if you do not return to Dubai, there is little that can be done to you to collect the debt.
Second, if you were to settle the debt and get everything in writing, I would think that the original bank that had the warrant issued would need to have it dropped. The same person that is picking up the settlement notice, could also inquire with the local authorities as to what is required to have the warrant dropped. I would find this out prior to entering into the settlement agreement. The main point is for the warrant to be dropped.
Let me know how you get on with this and I wish you the best.
Jon Emge is an experienced UK debt advisor who has helped thousands and thousands of people in the UK to deal with problem debt. Jon specialises in finding good solutions for problem debt using a variety of UK specific techniques.
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