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Car loan in dubai

(Querist) 19 October 2015 This query is : Resolved 
I took a auto loan in Dubai emirates NBD

in Sept 2006 and by April 2007 i lost my job and was nOt able get a job till Nov 2007 in Dubai and due to

continuous calls from banks i left Dubai on nov 2007 and returned to India and got a job in Qatar and settled

all my other credit card and personal loan of 45000 AED. As not receive any calls regarding auto loan I

thought bank has recovered the car but after all thesr years I got a call in oct 2015 to pay a outstanding amount

0f 62000 AED to the bank immediately or face legal action and the call are very threatening like interpol arrest

Please advice on this is there any lawyer in dubai who can assist me in this matter.
R.K Nanda (Expert) 19 October 2015
search google for dubai lawyers.
Rajendra K Goyal (Expert) 19 October 2015
You have to search on personal base, Indian lawyers may not be able to extend help in Dubai.
SAINATH DEVALLA (Expert) 20 October 2015


Pay up or go to jail, banks tell debtors

An increasing number of banks in the UAE are using heavy-handed tactics to collect debts, even when the sums involved are as little as Dh16, customers say. Meanwhile, the banks say it is happening because the country has no real structure for collecting bad debts.

Junaid Malik thought that it happened only to those who had lost their jobs and could no longer afford to pay off debt. But earlier this month, after missing his monthly credit card payment, he received the call - a collections agent from his bank threatening him with jail if he did not immediately pay what he owed. Gainfully employed at a beverage distribution company in Dubai, Mr Malik does not fit the profile of someone who would abandon financial obligations and abscond.

Now, however, he sympathises with those who do. "If every person had to deal with a bank employee who threatens each of his customers who don't pay their debt with a jail term or an arrest warrant, I can understand why so many people are leaving the country and fleeing back to their home countries," said Mr Malik, 29, who is from the UK. While customers condemn such tactics, the banks say they are necessary because the Emirates has no institutional framework, such as a credit bureau or a bankruptcy court, for dealing with bad debts.

However, the debts need not be large to lead to prison, and people in default often opt to flee the country rather than risk going to jail. The losses from customers fleeing credit card bills and car loans have been considerable, amounting to what officials at several large banks have described as half their "bad debt". These institutions have been busy relocating staff to debt collection, instructing them in the arts of "soft negotiating" and customer profiling.

Some, including HSBC and Citibank, have introduced programmes designed to make it easier for the indebted, in the form of extended grace periods and low-interest loans, to pay off large credit card debts. But some have also turned to aggressive collection tactics, or so the customers say. As well as hounding clients at all hours of the day, including weekends, banks are accused of haggling over outstanding balances of seemingly inconsequential amounts and threatening to unilaterally close accounts.

If these "incentives" fail, as in the case of Mr Malik, the next step can include dangling the spectre of debtors' prison. He said he consistently paid his minimum monthly balances, and only during a recent business trip to Scotland did he miss Dh600 (US$163) of required payments on each of his two Emirates NBD credit cards. The bank phoned him when he returned to work. "I said I'd make the payment when I finish work," Mr Malik said. "He asked me what time I'd finish work, and I said 5pm or something." At 6pm, the next call came as Mr Malik was still working.

"So the guy said, 'Look, you promised me you were going to make the payment at 5pm.' I was like, 'Look, I'm still at work. When I finish work, I'll make the payment'." Eventually, Mr Malik said, "the collections guy said, 'If you don't make the payment, I'm going to cancel your account right now and I'm going to cash your security cheque. The minute your security cheque is cashed, and the cash isn't in your account, the police will pick you up, and you can make the full payment from


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