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Collection agent from uae threatening police in india

(Querist) 10 January 2013 This query is : Resolved 
Dear Sir/Madam

I was in Abu Dhabi, UAE from March 2005 to September 2008, I had to return back home as I had lost my job during the recession. I had bought a car in Oct 2005 from Emirates Bank & returned the car to them on their advise (as I was unable to make the EMI payments in time) in November 2007 agreeing to settle any "shortfall" on the car value after auctioning of the car. Now in August 2012, a collection agency from Sharjah reached me over call & email demanding "Outstanding Payment" on the car without sharing any details on the auction, sale and shortfall amount. However, I believed them and agreed to pay a discounted Outstanding Amount (AED 5000/-) which they wanted me to transfer into their company bank account instead of my car loan account OR Emirates NBD Bank account. Now being suspicious I requested them to share any authorization they have from the bank to work with me on behalf of the bank and collecting on the loan, they are not ready to share any such document, rather they say, they have a "Special Agreement" with the bank which authorizes them to be the final decision maker on the loan, they even have refused to help me get in touch with the bank official or let the bank official reach me on this matter and are now threatened me on email that if I do not send them money ASAP they will take legal action on me in my home country (India). Meanwhile, I have made an effort to reach the Emirates NBD collection customer service department to inquire about the matter. They are yet to get back to me. The outstanding value as per the collection agent is AED 14,000/- approx.

Given the above background the following are my queries to you:

1. Can a collection agency purchase the loan from the bank and reach out to me and making an effort to collect as much as possible and make profit on the dealing they might have had with the bank?
2. If such purchase is legal, will be be binding on me to pay the collection agency as I would have no knowledge of such a transaction between the bank and the collection agent?
3. If the Collection Agency is working on behalf of the bank, they must share authorization letter they have from the bank with me to help me have faith in them to work on the loan repayment. Isn't it?
4. Bank did not reach me with any notice/letter informing about the auction/sale/shortfall amount on the car, in spite of having my home country address with them on my files with them. Shouldn't they have reached me?
5. The collection agent/Bank had purposely deposited the PDC in spite of my email to them not to deposit the cheque in my other bank account as the car was already surrended and bank was supposed to auction, sell and reach back to me with the shortfall amount. Is it not a wrong action on part of the bank/agent?
6. Can the bank appoint a collection agency without my knowledge AND without making an effort to reach me directly?
7. Can the collection agency file any legal/police action on me for the above matter in India/UAE? If yes, How does that work & how long would that take to happen?
8. If the collection agency is able to file a case on me in India, can they demand my passport to be compounded with the courts for this kind of a case? in such case, what is the remedy i have to not let my passport be compounded? as my job involves international travel, will any such case deter me from travelling abroad?

Request your quick advise/response to the above queries (point by point) which are really disturbing me at this moment.

Thanking you in advance.

ajay sethi (Expert) 10 January 2013
dont make any payment . wait for your reply from bank to your queries
Abbas Ali (Querist) 10 January 2013
Dear Ajay,

Thank you for our response.

I have not made any payment, I do not intend to pay them until I hear from the bank.

Can you please help me with my queries listed in my original query?

Thanks in advance.
ajay sethi (Expert) 10 January 2013
do not know the procedure in UAE as to whether collection agents can purchase loans from banks and profit . you are not bound to pay collection agent unless bank informs you that they have authroised cllletion agency to collect payment on their behalff
Abbas Ali (Querist) 10 January 2013
@Ajay Sethi, I realize, Indeed. I have written to the bank collection customer care team on this matter, in anticipation to hear from them. Will take this ahead once they get back. However, my immediate concern remains to be a possibility of a criminal/civil case as claimed by the collection agent from UAE. Can a Foreign/Indian based Collection Agent go to police/courts and file a complaint/case against me for this matter?
If yes, can considering the history of circumstances mentioned in my original query with regards to purposeful PDC submission & no intimation from bank, what remedies do I have as per the Indian Law? Kindly assist with this info.
Thanks in advance.
ajay sethi (Expert) 10 January 2013
bank can file case against you in india . if bank authorises collection agent to take legal proceedings then they can .

you can dispute your liablity to make payment .wait for proceedings to be filed . depending upon averments made in complaint / suit then consider your defences .
Abbas Ali (Querist) 10 January 2013
@Ajay Sethi, I realize, hence I hope I would not have police coming in at my home and arresting me, rather a court summon would come to me at my residence address?
1. If yes, what is the normal duration in days that court would give me in order to respond back to the summon OR reach the courts for the first hearing?
2. Can such case allow the collection agent to demand/request compounding of my passport?
3. As I plan to travel overseas in coming weeks, can I appoint my family member with a GPA to represent me in such category of case?

Request your advise on above specific queries. Apologies for the inconvenience, the queries are cropping up in my mind as we are debating the matter.

Thank in advance.
Devajyoti Barman (Expert) 10 January 2013
The order of the court outside of this country could not be executed on you. So rest assured.
Lodge a complaint with local police and ignore such calls later.
Abbas Ali (Querist) 10 January 2013
@Devajyoti, Thank you for your response, I realize & will do the needful on the complaint for the threatening emails & calls from the collection agent from UAE.
However, my concern is if they are able to file a case before i travel, would they be able to ask for compounding of the passport OR perhaps if possible, even raise a LOC (look out notice) on my passport number. Is that possible?
ajay sethi (Expert) 10 January 2013
it is upto bank to decide its course of action . if it files suit in india and you are served with summons then defend the case .

we do not know reliefs that would be claimed in legal proceedings taken by bank or its agent . cross the bridge when you come to it .

you can appoint power of attorney holder to file reply , appoint lawyers etc .
Abbas Ali (Querist) 10 January 2013
@Ajay Sethi, Thank you very much for your response on the GPA.
Guest (Expert) 10 January 2013
Laws of Middle East/ Gulf countries are very stringent about cheating, fraud, swindling of money. They won't prefer to file any case in any of the Indian courts, as the courts would not be bound to proceed, as per the laws of Middle East/Gulf country. The bank can even get yourself extradited through their Government by requesting the Consulate of India in UAE. In UAE you won't even be allowed to hire services of any lawyer before dumping you in jail till the case starts in the Sharia Court.

So, better consult the conserned High Commission/ Consullate, as the case may be, or any reliable officer/help line of the Ministry of Foreign Affairs, who may be aware of the laws of the ME, for appropriate guidance before you feel the pinch of the Middle East law.
Abbas Ali (Querist) 10 January 2013
@PS Dhingra, I realize. But do you think the collection agent without involving bank into this process would request and process my extradition from India to UAE for an amount of AED 14,000/- or INR 2,10,000 (not yet proved by the bank as a shortfall for the loan) which is by far a nominal amount in comparison to the cheating, fraud and swindling cases involving millions of dirhams which may require an extradition as an option?
My concerns are rather on the legal options they would have in reaching out to me in India.
R.K Nanda (Expert) 10 January 2013
contact local lawyer.
Raj Kumar Makkad (Expert) 10 January 2013
I have nothing to add in the long discussions already been concluded.
Abbas Ali (Querist) 11 January 2013
Dear ONE & All,
Thank you for your valuable guidance & advises. I am quite clear as to what I can expect in the coming days, in case if any court case/police complain is filed against me by the agent or its representative in India. Lastly, I have two given queries on the matter, appreciate if you can objectively guide me on them:

1. If they ask compounding of my passport in their complain, will the police/court compound my passport without letting me put forward my response to the complain? i.e. First hearing on the matter
2. In case if I do have to compound my passport, can I appoint my family member a GPA helping me get my passport out and be able to travel abroad?
3. What is the general procedure for issue of LOC (Look out circular)/Interpol red alert? Although I hope the amount of loan which the case could be for would not qualify for such circular/alert.

Request your specific responses for the above.

Thank you in advance.
Guest (Expert) 11 January 2013
Dear Ali,

My reply was not intended to frighten you, but to make you alert of the possibilities, which certainly have to undergo long procedural formalities.

About your query on extradition, what to say of collection agent, even the bank cannot directly seek your extradiction without the involvement of the Government of UAE and the Government of India, which is a long process.
Guest (Expert) 11 January 2013
About your latest queries, any request by the collection agent for impounding your passport cannot be entertained without the specific orders of the competent court of law.

Inrpol is also not likely to issue any red alert if a person is not a terrorist or a hardened criminal. Moreover, unless approached by the law & order enforcing authorities of any country, interpol is not likely to resort to any look out process.
Raj Kumar Makkad (Expert) 11 January 2013
Ld. Dhingra has properly guided you.
Abbas Ali (Querist) 12 January 2013
Dear PS Dhingra, thank you very much for your valuable response and guidance.
Guest (Expert) 12 January 2013
You are welcome.
Abbas Ali (Querist) 14 January 2013
Dear All,

I haven't been able to contact my local lawyer, can you please recommend a good lawyer in Hyderabad you may know to consult on this matter and appraise him, just in case if I may need him/her in time if any case comes up.

Thank you in advance.
Raj Kumar Makkad (Expert) 14 January 2013
Nagesh Advocate
Disha Law firm
House no. 1-9-1114 Shoba pavani Arcade, 1st floor, opposite Dugabhai Deshmukh Hospital, Above ICICI Bank, (Nalakunta branch), Vidya Nagar, Hydrabad-44
ajay sethi (Expert) 14 January 2013
search LCi data base for lawyers practising in hyderabad
Abbas Ali (Querist) 14 January 2013
@Raj Kumar Makkad, Thank you very much!!
@Ajay Sethi, Thank you for the guidance, if there is any one of them you know personally and would be the best according to you in helping me on such matter?
Raj Kumar Makkad (Expert) 14 January 2013
The details provided above by me is a fit lawyer and personally known to me so you may contact him if you require.

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