How to Get Out of Debt With the Get Out of Debt Guy » dubai

I’m Ready to Settle My Debt in Dubai. I Live in India. – Niki

Steve Rhode — Thu, 03 May 2012 19:41:44 +0000

“Dear Steve,

i used to live and work in dubai. In 2009 after the market crashed, i had lost my job and had to come back to india. In dubai i had credit cards from different banks. Few cards i had used in dubai and after coming back to india my financial situation was not good. So i had used few cards in India as well. Now the dubai banks ha transferred my case to the collection agency in india. They are calling me regularly for the settlement of the credit cards and threating me everytime that they will forwarding my name to Interpol.

The total amount including the principal & interest & other charges has reached upto 1,00,000 dhs. Now I am ready to settle the credit cards & make the payment as I want to go back to Dubai. But I do not know that on what amount should I get the setlement done. In total they are asking me to pay 50,000 dhs. I am unable to pay this amount as my monthly income is very low due to which i can’t pay this amount. I am asking them to give some more discount and maximum I can pay 20,000 dhs. They are not agreeing to that. So, please tell me what should I can do and also from where I can check that whether my name is in Dubai Police wanted list or not?

thanks & regards,

niki”

The Answer:

Dear Niki,

First off, I’m not worried about them forwarding your name to Interpol. If Interpol took on the cases of everyone that owed debt, they’d never get anything done. It’s a scare tactic.

I would suggest you contact a lawyer in Dubai to represent you. They can make the police inquiry as well. The lawyer in Dubai could also act as an intermediary with the bank to negotiate some solution.

I’m sorry that I don’t know of a specific firm to use for this but maybe contacting some friends back in Dubai and asking them for a personal referral to a lawyer would be a good place to start.

You are doing the right thing by trying to proactively deal with the situation. A solution is possible through negotiations with your creditors before you step foot back in the country.

Please post your responses and follow-up messages to me on this in the comments section below.

Big Hug!

@GetOutOfDebtGuy

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

How Can I Settle My Debts in Dubai?

Jon Emge — Tue, 01 May 2012 20:12:41 +0000

From How to Get Out of Debt

“Dear Jon,

I had lost my job in dubai, and now wanted to back to dubai, but I cannot as I had debts in dubai banks

The Answer:

Hi,

Unfortunately if your creditors/the banks, are unwilling to settle the debts for what you can afford, you have little recourse. And a settlement of half, 50,000 on owing 1,000,000, is actually a good offer.

Your options are to do nothing, which isn’t good in the long run, make what payments you can, or try to get assistance from family and pay the amounts they are asking.

Do you have the 20K in hand to pay them?

You can inquire with your local police as to if any warrants are outstanding for you, and you can also inquire with the police in Dubai. If there is a warrant outstanding, short of leaving the country or paying the debts, there is little you can do and you may wish to seek legal advice as well.

Regards,

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.

If you have a question you’d like to ask about how to get out of UK debt, just use the online form. I’m happy to help you for free.

Government Debt Settlement Fund to Release People From Jail Over Debts

Steve Rhode — Fri, 09 Mar 2012 19:04:43 +0000

From How to Get Out of Debt

Previously I published information about the new government sponsored debt settlement fund in the United Arab Emirates. New information has come to light that will be very helpful for people currently being held in jail because of financial problems.

GulfNews.com is reporting:

The initiative aims to settle the personal loans of less than Dh1 million for UAE citizens who are currently in detention, pending trial or convicted because of their debts.

Banks will settle their debts through installment schedules determined by the courts.

Those who are in prison will be released and have their loans settled in accordance with specific settlement mechanisms, including deduction of 25 per cent from their monthly salaries, with undertakings not to borrow again until the loan is settled. – Source

For those currently helps in Dubai or the IAE for debts, please inquire about release under the “Citizens’ Debt Settlement Fund.”

If anyone has contacted the fund and found it to be successful in resolving UAE debts, please post a comment below.

@GetOutOfDebtGuy

How Can I Settle My Debts With My Banks in Dubai – UAE? – Tanya

Consumer — Tue, 06 Mar 2012 18:57:39 +0000

From How to Get Out of Debt

I have few credit cards from different banks and a loan from another bank, now my salary is AED 12000 almost and not enough to cover the loan amount plus the min monthly dues for my cards, from another side I could consolidate the debt with Abu Dhabi Islamic bank lets say, however my company is not listed with them, in fact my company is only listed with few banks , the ones I already have bad credit with ( from late payments for cards ) . Please advise me how to settle my debts, I was looking forward to a solution where I will have one loan from one bank even if its 70 percent from my salary, as long as I am not being chased for payments … please help,

thanks

Tanya

This is your chance to be a hero and help out this person by providing your feedback and answer to the question in the comments section below.

Can I Get My Dubai Debts Forgiven Now That I’m in India and Divorced? – Sheeba

Steve Rhode — Tue, 28 Feb 2012 23:36:02 +0000

From How to Get Out of Debt

Dear Sir,

This is Sheeba. I lived in Dubai from April 2007 till November 2008. I have pending loans and credits in Dubai.

Briefly, these loans and credits were forced by my husband for his personal use. He promised to clear it saying he wanted to start a business in Dubai. He could not apply himself as he wasn’t eligible for it. Since I worked for a reputed company in DIC, he and his family (mother and brother) compelled me to sign papers to apply for loans and credit cards. I had my delivery (baby boy) in August 2008 at the American Hospital, Dubai and my entire pregnancy and delivery costs were paid by my company’s insurance. My husband sent me back to India with the child in November 2008 and I could not return back to Dubai to join my job as my husband did not clear my debts (as he promised) making me a loan defaulter. Because of this, I resigned.

Today, I divorced him because he had cheated me. The grounds on which my divorce has taken place is because of his financial fraudulence. I however have cleared 3/4th of the total debts on my own and a 1/4th is still pending.

I have endured much hardships and problems because of my husband’s fraudulent actions. My child is 3.5 years old and is in my custody. I have been working and supporting my child’s and my day-to-day expenses.

It is therefore possible to write any concerned in Dubai who can waive off my other debts as I am totally not in a position to repay. I can evidence them with my cleared debt and divorce decree.

Pllsszzzz advise.

Sheeba

The Answer:

Dear Sheeba,

I’m so sorry to hear how you were taken advantage of. At least you and your child is with you and taken care of under your love.

The divorcee decree is not a termination of your duty to repay the debt. That an agreement between you and your ex-husband that you wanted to dissolve the marriage. It’s not going to free you from your responsibilities for the Dubai debt.

But the more important question is if you plan to go back to Dubai? Do you?

Please post your responses and follow-up messages to me on this in the comments section below.

Big Hug!

@GetOutOfDebtGuy

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

Citizens’ Debt Settlement Fund Pays to Settle Debts of Citizens in UAE

Steve Rhode — Wed, 08 Feb 2012 20:15:11 +0000

From How to Get Out of Debt

President His Highness Sheikh Khalifa bin Zayed Al Nahyan of the United Arab Emirates has just announced a national $2,722,600,000 fund for low-income debtors to use to settle their debts with a number of UAE and Dubai lenders.

This fund will allow people to be able to settle their debts rather than face prosecution and jail time as they have previously.

The agreements, signed at the Ministry of Presidential Affairs by Mohammed Abdullah Al Rumaithi, Ministry’s Undersecretary for Financial and Purchasing Sector and member of the Fund’s Committee, with lenders: the National Bank of Abu Dhabi, Abu Dhabi Islamic Bank, Abu Dhabi Commercial Bank, Union National Bank, National Bank of Ras Al Khaimah, Standard Chartered Bank and Mashreq Bank, followed an inclusive survey conducted by the Fund in collaboration with the UAE Central Bank on defaults. The Fund finalized the study and compiled a list of first tranche of 6830 defaulters whose debts were less than AED 1 million.

The goals of the fund include easing the living burdens on citizens who can not afford to repay their loans.

“The fund is also aimed at helping the families of those citizens languishing in prisons due to bankruptcy and bank loans,” Mohammed Abdullah Al Rumaithi, Undersecretary for Financial and Purchasing Affairs at the Ministry of Presidential Affairs added.

Under these agreements, the banks will act on behalf of the Fund in receiving applications from defaulters according to requirements worked out by the Fund to handle these debts.

Applicants will need to fill a special form for settling debts which defines sources of income through which installments will be deducted and paid back to the Fund after debt settlement which should not be over 25 per cent of monthly salary or income.

The debt settlement process also demands the debtor to sign a pledge obliging him not to take loans from banks and financing houses while he is repaying installments.

The lender banks are mandated to administer loans offered by the Fund to debtors including transfer of monthly installments. The banks will bear the administrative fees of the said loans.

As a reward to banks, the Fund may allow these banks to invest part of its funds while the banks undertake not to extend new loans to recipients of the Fund’s loans during the period of debt settlement.

Agreements between the Fund and banks will remain valid until all loans are fully cleared.

@GetOutOfDebtGuy

I have a Uk company chasing me for Dubai debt. – Sian

Consumer — Wed, 28 Dec 2011 18:24:48 +0000

From How to Get Out of Debt

Hi steve,

I have debt in dubai of 10,000 AED and has now accumulated to 36,000 AED (because of interest) I have just recieved a letter from a UK company acting on behalf of UAE to recover debt. Is their anything the UK can do to me? Or any legal advise I should get? They are threatening me with Interpol and I’m off to New York in 2 weeks for a holiday, will the affect me at immigration?

Please help

Sian

How can I avoid getting arrested in the airport in UAE because of a cheque placed there?

Consumer — Wed, 28 Dec 2011 16:30:44 +0000

From How to Get Out of Debt

me and my husband used to have a company in Dubai, however the company bankrupt and we canceled it later on, there is this one cheuqe written in my husbands name and the receipt was in my name the man after he got paid and me and my husband left Dubai placed the cheuqe at the airport !!

will i get arrested if i ever go back to Dubai !!

what should i do to avoid getting arrested ?

Gena

Will I Go to Prison in Dubai for My Father’s Debt? – Noor

Consumer — Sun, 25 Dec 2011 14:17:44 +0000

From How to Get Out of Debt

My father has been trying to run a trading company in UAE for the past 15 years. Things have always been tough but have become a real mess after the recession. To help me out , my father had added my name as a partner in the trade license (17% share). This helped me with immigration as a single mother can sponsor her kids here only if she has certain very limited visas, a partner’s visa being one of them. Anyways, now the situation is such that my father has loan with three banks, one of which has recalled their loan after the Central Bank issued a notification to the bank that our company is a bad credit. We are trying our best to negotiate ( the bank being an islamic bank, has an extremely rigid code of conduct) and arrange for the money but things look bad.

My question is, if worse comes to the worst, where do I stand? Would I too end up in prison here in case things go that bad? I have always blindly signed whatever papers my father has given me because he is my father. I have never been an active partner but it seems that does not count here. Also, my name cannot be removed from the Trade License right now as things stand because in order to do so there is a procedure as per which one has to advertise this act through local newspapers and notife the banks. I am sure no bank is going to permit the release of a partner right now.

Please let me know what awaits me considering the above scenario and can i do something to avoid prison?

This is your chance to be a hero and help out this person by providing your feedback and answer to the question in the comments section below.

DUBAI CREDIT CARD DEBT – Joseph

Consumer — Sun, 25 Dec 2011 03:50:15 +0000

From How to Get Out of Debt

Hi..

I am Joseph. I seek your good advice to know something about dubai credit card debt. I use to work in dubai from 2006-2008 and while this tenure I hold a credit card of a local bank and as the world knows in the financial crisis of dubai most of the indian and other countries expats lost their jobs or were forced to leave the country because of their unpaid debts and many more good reasons.

My story is quite the same, I could not pay back to bank my credit card bills which made me liable to bank of some 10,000 AED last 3 years back. Now since I have left that country and working in a private firm in Saudi Arabia. I have been receiving threat Emails from some collection company hired by bank that they have put legal case against me in india and there is a travel ban on me and if I travel any where specially in GCC coutries I will be caught.

Please let me know if there is any such law or interpol will be intervened for credit card collection. I am financially a poor guy working as clerk here and I can not pay back. After three years of surviving and trying to shape my life healthy this things are getting night mares to me.

Please help…

How Do I Get My Tenant in Dubai to Pay His Rent if His Cheques Are Bad? – Bwana

Consumer — Fri, 23 Dec 2011 10:03:17 +0000

From How to Get Out of Debt

My tenant in Dubai is in the middle of a one year tenancy agreement under which four post dated cheques were issued. Only one cheque has been honoured and two have bounced. I have sent him numerous polite requests to pay in cash. No answer.

I am an absentee UK landlord of an apartment in JLT (Dubai) and two rent cheques issued by my tenant have bounced. I have sent the tenant several emails and made several unsuccessful telephone calls requesting cash payment. What recourse do I have to evict the tenant and recover the outstanding monies without having to travel to Dubai? Can I file a police case for bounced cheques in absentia? Your advise will be most appreciated.

This is your chance to be a hero and help out this person by providing your feedback and answer to the question in the comments section below.

Personal Loan taken in Dubai, Back to India after Job Loss. – Dev

Consumer — Fri, 23 Dec 2011 00:24:40 +0000

From How to Get Out of Debt

Hello Steve, I know you have been flooded with similar questions. But still I need your advice.

I had Personal Loan in Dubai amounting AED 60000 and I lost my job. I returned to India then after a year I was chased by Recovery Agents. Since its a large amount there is no way i can pay it off. I tried to settle it for half the amount i.e. AED 30,000 but they refused. I get pesky calls every now and then.

I heard that Dubai Banks are now allow Delayed repayment plan i.e. If i settle it for 30,000, I can pay it for next 36-48 monthly basis. This will eliminate my debt slowly as well as my record in Dubai will also be improved. Is it right? I mean have you ever come across this kind of settlement?

Do Dubai banks have any kind of Legal rights in India or any other country of debtor? Can this case be fight in Indian Local Court?

I am open for both options i.e. Delayed Repayment Plan or Indian Court Fight.

Can i please request your views on this?

Many thanks

Dev

American With UAE Dubai Credit Card Debt is Worried About Interpol. – Lisa

Steve Rhode — Wed, 21 Dec 2011 16:58:45 +0000

From How to Get Out of Debt

“Dear Steve,

I am an American who was working in the uae for six months and in that time I accrued credit card debt in the approximate amount of $10,000USD. This is probably an overestimate, but definetly not an underestimate. I could not stand the working conditions in the UAE so I fled the country leaving behind my credit card debt.

My mother has been contacted by the bank a few times and then once by a UAE collection agency. Her response is always the same answer: “I don’t know where she is.” I have also received emails(although they are few and far between) regarding the matter. I simply do not respond to them. The latest one states that they will hand my case over to Interpol.

Will they hand over my case to Interpol for that insignificant amount(insignificant for an oil-rich country)? What will/can be done? Should I be worried? Should I avoid flying into any GCC state in the future?

Lisa”

The Answer:

Dear Lisa,

There is a current scheme in Dubai to attempt to work out payment arrangements with creditors but from everything I’ve read you would need to be in the UAE to investigate that program. It’s administered by the local police.

Since you’ve already fled the country I would avoid any GCC country but you will not have any issues coming back into the United States.

I have not heard of any case being turned over to Interpol for a simple credit card default and and that sure sounds like a hollow scare tactic since Interpol has a much higher scale of priorities to deal with.

When you can, you might want to reach out to the bank in the UAE and attempt to workout a suitable repayment arrangement.

If you have concerns about your legal status in Dubai you might want to find an attorney in the UAE to advise you.

Please post your responses and follow-up messages to me on this in the comments section below.

Big Hug!

@GetOutOfDebtGuy

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

I’m a Runaway Housemaid in Dubai. – Lucia

Consumer — Wed, 21 Dec 2011 15:02:45 +0000

From How to Get Out of Debt

hi,

i’m lucia im a run away housemaid. I left my employer cuz they are not good. My employer hurting me thats whay i run away. I would like to ask some questions. I start work june 2010 its 2 yrs contract so june 2012 finish but i only work 3 months and i run away. That time i go to philippine embassy cuz i dont know what will i do but that time the embassy is close. one frnd help my situation then i work.

1. my employer will cancel my visa?
2. which site i can find my name if im cancel?
3. there is any way that i will do to get a new visa?
4. if i will go back home i can still come back in dubai?
5. how long it will take to come back again?
6. if i will surender where i will go in embassy?
7 .i will put in jail before going back home?

hope you can help my situation cuz im planning to go back home next year.

thnkzz…

Desperate in Dubai Over Car Loan With Friend From Philippines

Consumer — Fri, 16 Dec 2011 20:37:34 +0000

From How to Get Out of Debt

My friend ask me to help him loan a car from our company. we are getting some discount if we purchase car from our company. I helped my friend because he is a good person and trusted as well. He is from India and I am from Philippines.

in 2008, we took a car and got good discount. we ageed verbally that i will take the car under my name and issue my cheques as well for 6 years or total of 72 months cheque. he said he will transfer the car in his name after one year and i trusted his word. in return he give me some money as a token of appreciation for helping him. like 30% of the discount he got from the car.

after one year he starts to delays his deposit to my account to fund the cheques i issued to the bank and resulted some cheque return and bad image on my accounts although he was paying those charges. then during that time most of the banks stops allowing to loan or top up if your salary is less than dhs 10,000 including my bank. I start a sking him when he will pay the car and transfer it to his name. that was after 1 year since we took the car. he said he is also now having some financial problem and he cannot apply for loan to buy my car..so we continue as the usual set up..

i manage to close my bank by getting loan from one bank and i have to pay all my liabilities from them. but the cheque i issued still not replaced from the bank where we took the loan. my friend agreed to pay the stop cheque deposit for every due cheque by paying extra dhs 100 every month. on this bank where we took the loan, they give me credit card even i did not request for it. now this card is overdue and i cannot pay anymore which reached more than the credlit limit. due to this card, i receive email from them that if i am overlimit to the credit card i cannot request for stop cheque deposit anymore…

i am now in dilemma what i have to do to my friend..he still now cannot buy the car and difficult to deal with. i have no written a greement before and i cannot do anything now. he is still driving the car under my name. i want to get rid of the car loan but i dont know what is the better way to deal with my friend at least problem only wiht the credit card and not on car loan.

is there any case that i can do for my friend because of not paying the cheque due on time? can the bank file a case against me because of not paying my credit card even i am paying for the car loan?.

thanks for your advice in advane
Desperada in Dubai

This is your chance to be a hero and help out this person by providing your feedback and answer to the question in the comments section below.

Debt Problems in Dubai UAE Get Better and Worse for Consumers

Steve Rhode — Fri, 09 Dec 2011 21:44:38 +0000

From How to Get Out of Debt

I happen to have written quite a bit about debt problems in Dubai. It originally caught my eye because it’s one of the only places I am aware of where people have no access to bankruptcy and face actual extended jail time for unpaid bills.

You can see the past Dubai and UAE stories here.

The situation in Dubai is still not great, at all. There are still limited opportunities to resolve debt with creditors and stories about people being held in the creditors office for hours at a time till they agree to repay the debt, are not uncommon.

Frankly, in some cases it’s easiest to do the jail time and be set free to deal with the debt. One past reader used their vacation time for their short sentence and people at work never knew their vacation was spent in a Dubai jail. The room service is a bit lacking.

Because of the absence of reasonable solutions to deal with problem debt in Dubai, people take all sorts of action. Many ex-pats flee the country and go back to their own in the UK, India, or the Philippines. The number of cars that are abandoned at the international airport has actually been a problem in recent years.

Not long ago, one family took a more drastic path out of debt in Dubai, they killed themselves. Anil Kumar and wife Sreeja committed suicide after strangling their eight-year-old daughter Anusree in Ras Al Khaimah recently.

Official records show in the past nine months, 53 Indians committed suicide. In one suicide a 38-year-old Indian foreman jumped from the 148th floor of the world’s tallest tower, Burj Khalifa, on May 10. Then, a 45-year-old executive jumped from the 30th floor of a building in Jumeirah Lakes Towers on May 13.

Kumar P, whose brother committed suicide due to incessant threatening calls from the bank, told Khaleej Times that he decided to end the problem by killing himself because the banks never gave him a chance after he lost his job. “He also could not leave Dubai as his name was in the immigration’s records of blacklisted people,” Kumar said. – Source

To try and deal with this very sad situation in Dubai, the police are trying to give people a chance of negating a solution with their creditors before arresting them.

The bad check debt settlement process, that is run by the police in Dubai, allows the creditor and debtor a chance to reach a suitable repayment arrangement rather than face jail time.

The Dubai police report that bad check cases are now the majority of cases filed.

The beneficial part of this new Dubai police debt settlement approach is the issuance of a certificate of good conduct by the police so the debtor can remain employed or find a new job so they can repay their debt.

The police system also allows for the payment to creditors through the police. What will we see next, Dubai Police Debt Settlement Service franchises?

A proposed credit reporting system in Dubai is slated to be created by the police as well. The system would allegedly allow the reporting of history of bad check disputes to banks so they could use that information in their evaluation when opening new accounts or extending credit.

@GetOutOfDebtGuy

I Left Dubai in Debt, Went to India and Now Live in Australia. – Iram

Steve Rhode — Sat, 26 Nov 2011 15:20:44 +0000

From How to Get Out of Debt

“Dear Steve,

I am an Indian citizen presently permanent resident in Australia. I visit india every 2-3 years. i was working in Dubai UAE from March 2003 till June 2005. In 2005 i cancelled my visa and left dubai for good. before leaving dubai….. i had credit cards from RAK bank and HSBC bank i admit I made some good purchases with these cards. I came back to india , got married and forgot abt all this.

After marraige I left for Australia and have been living here since. my parents got some initial calls from some ppl (representatives of these banks ) in india in initial years … say 2005-2006. but after that nothing. I never got any mails or statements from these banks in all these years. Until recently (4 months back) I got a mail on my email address from a debt collecting agency in india regarding this payment to which i replied and got no response. Now from last 2 days my relatives (in laws who were not existing at the time of taking credit card o r leaving Dubai ) are getting calls from some people who are acting on behalf of RAK bank asking for my whereabouts . they are using harsh words and warning them of dire consequences if they dont give my where abouts and also telling them that I will get arrested while I land on Indian soil.

My question to you is that Its been 7 years since I left Dubai and how is it that they are contacting me now that too through a collecting agency in India. How did they got those contacts that were not even existing at that time and I have hardly lived at those addresses except for a few days every year with no official activity (just holidaying). Is it possible that I have a police case IN INDIA and I might get arrested upon arrival. I visited india just one and a half year back and at that time nothing happened. I dont even remember how much was the credit amount as I never received a bill from them…. so is it possible that the amount may have multiplied by many thousands. How can I get rid of this. I am so sad. plz reply as soon as possible and email me when it is done. Many thanks and a BIG HUG

Iram”

The Answer:

Dear Iram,

I’ve not heard of a police case being opened in India as a result of debt in Dubai. It sounds to me as if it is just an aggressive debt collector in India that is making up stories to intimidate you.

To be safe though, I’d suggest you ask your family back home for the name of an attorney or solicitor there you can contact and ask your questions to about checking for an open police case in India. I doubt they will find one.

Of course resolving the underlying debt with the Dubai banks is always an option.

Please post your responses and follow-up messages to me on this in the comments section below.

Big Hug!

@GetOutOfDebtGuy

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

I’m British With UAE Debt But Living in China. – Aaron

Steve Rhode — Fri, 18 Nov 2011 12:44:28 +0000

From How to Get Out of Debt

“Dear Steve,

I am a UK national and recently left the UAE after working for 18 months, due to Emitarisation, which made my position incredibly unstable and other personal matters, leaving me with the prospect of imprisonment for none payment of debt.

I left the country with debt in the Region of AED 600k, to various banks. The “crackdown” on provision of credit within the UAE was seriously flawed, as my application forms were completed by the Sales Representative who subsequently coached me through what to state, based on what they had entered onto my Application Form. All the Sales Representatives were Indian or Pakistani nationals, clearly working on commission and took the opportunity to pass around all your details to their Cousins / Brothers working in the other Banks.

My debt is completely with UAE Local Banks and not international banks.

I now have the opportunity to take a job in China, however note that China has an extradition agreement with the UAE.

Is it possible for UAE Banks to chase debt in China on a legal basis and if so, could I, as a British National, be extradited back to the UAE?

Aaron”

The Answer:

Dear Aaron,

I’ve never heard of anyone getting extradited or held in other than one of the GCC countries.

I’m not sure that’s a definitive enough statement for you but I’ve just run into this situation before.

If you want something more definitive then you’ll have to ask a legal representative experienced in both China and the UK. I did locate one for you by doing a search. See Nadine Wong & Co. Solicitors. I don’t know anything about them except that I found them on Google.

Please post your responses and follow-up messages to me on this in the comments section below.

Big Hug!

@GetOutOfDebtGuy

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

I Am a Single Mother Living in India and Want to Move to Dubai. – Anna

Steve Rhode — Wed, 09 Nov 2011 22:08:54 +0000

From How to Get Out of Debt

“Dear Steve,

I am a single, living wt my mum in India.My bf and I split up in dec last yr after finishing all my money. I have been tryin to find work for the last couple of months ( almost 10 months) however wasnt successful. Recently I found myself a job as a teacher in dubai and I want to take it up however I have a loan wt citibank and 2credit cards wt them and 2 other cards with ICICI and SBI all summing up to a debt of abt 2 lakh rupees. Recently my mum lent me 5 lakhs to preclose 2 other loans I had with Barclays and HSBC bank and now when I get this job I intend to pay her back her 5 lakhs and then pay the banks bt I cant tell her I have these other loans pending as it would upset her since she doesnt have the money to help me pay for them right now and she would feel helpless. I took these loans for a friend who cheated me and I have been paying for them for a couple of years. I have not paid my citibank loan of 75k rupees and my citibank credit c ards of 40K rupees and my SBI is abt 75k including all the interest and late payment fees. I am leaving for dubai on the 8th and I am afraid that I may get stopped at the airport and not allowed to go to dubai or maybe i would get caught in Dubai..its not like I dont want to pay the banks bt not jst now and right now they r unable to contact me however if I speak to them and tell them i will pay them later they wont understand and will start forcing me to pay atleast a small amt right nw and to be honest I dont have money to buy myself anything. I need your guidance and advice. Thankin u in anticipation!!

Anna”

The Answer:

Dear Anna,

Were these loans taken out in India or were you previously in Dubai and the loans were taken out there?

Please post your responses and follow-up messages to me on this in the comments section below.

Big Hug!

@GetOutOfDebtGuy

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

I Have a Loan in Dubai I Can’t Pay. – Helpme

Steve Rhode — Wed, 28 Sep 2011 21:28:57 +0000

From How to Get Out of Debt

“Dear Steve,

-Please advise me… I have a loan with Emirates NBD, 3 years to pay AED 180k (this is just the principal and mentioning aside interest) and supposed to finish by July 2011.

-Lost my job in Dec 2008 and found a job in Nov 2009. My monthly installment is almost AED 6k as I used to have a good pay before I lost my job. I struggled to pay the loan and thanks be to God I managed to pay even when I wasn’t having a job for 1yr.

-With my current job, 70% of the amount goes to this loan (AED 6k). My personal loan is supposed to end last July 2011 and on top of it I missed 2 monthly installments = 3 months totally amounting to AED 18k which I couldn’t afford to pay anymore.

-I started getting calls in July 2011 to pay, then Aug 2011, then Sept 2011, not really everyday but once in a week or even lesser. They’re from collection dept and harassing me to pay or they would file a police case and I will be jailed. Btw never updated them that I’m working already so kept on telling them that I don’t have money (which is really true) and trying to arrange some fund but couldn’t pay the full amount; that I want to go for full settlement and asking for discount but they wouldn’t just listen. I have paid to date approx. AED 193k and yes in 33 months so the principal amount AED 180k has been covered already. However they wouldn’t agree on negotiation that I have to pay full AED 18k.

-You could imagine how I tried to meet both ends…very hard so I could understand those who are in the same situation…So terrified until this moment. I also have RAK Visa of 3k and MC of 9k and just missed to pay the Aug statement and they started also harassing me since not paying the Aug min payment will make both the cards cross my maximum limit.

-Frightened, mentally tortured, some sleepless nights, so worried…I prayed and want to make it happen that 2011 I would have finished the ENBD at least.

-If there’s anyone out there who knows someone from ENBD collection dept that I could negotiate this matter and get really a slashed discount, please help me and let me know… Also I called, I called ENBD toll free this week and they advised me to visit Nad Al Sheba branch and see the lady handling my case, who 2x I spoke with her and she’s really nasty and harassing me, and even told last time that don’t call her since my case is filed with the police already….Please help.. Thanks a lot and I pray that may everyone one day gets relieved from their loan or find ease in settling them, Ameen…

-Do you have an idea if I could negotiate this matter and get really a slashed discount, please help me and let me know… Do you think ENBD can file a case even if more than the principal has already been paid? Also I called, I called ENBD toll free this week and they advised me to visit Nad Al Sheba branch and see the lady handling my case, who 2x I spoke with her and she’s really nasty and harassing me, and she even told last time not to call her since my case is filed with the police already….Please help.. Thanks a lot and I pray that may everyone one day gets relieved from their loan or find ease in settling them…

Helpme”

The Answer:

Dear Helpme,

Owing debt in Dubai seems like a trap. Money is lent without either a legal way for borrowers to handle their debt when they run into similar situations or to prevent people from going to jail if they can’t pay.

My advice is based on the experience of others that have come to the site and shared information. It seems that even if you have repaid the original balance of the loan the issue is that it has not been repaid in accordance with the contractual terms you agreed to, which included interest, so you would still owe the final amount.

My reaction is that you could have a criminal case opened against you if you did not pay as you agreed. Dubai has very archaic laws when it comes to debt owed.

I’m also concerned that the balance on your credit cards has reached it’s maximum limit because you had to charge items since you were paying all your money back to that previous loan. All that has happened is your debt has shifted from one obligation to two new ones.

Your options are limited. You can attempt to negotiate with the original bank for a final single payment and then focus your attention on paying down the credit cards. Or you may determine you will not be able to meet your obligations and will then need to make a decision if you want to leave the country before you are charged.

If you are charged you may have to spend some time in jail but upon your release your debt will be forgiven.

Please post your responses and follow-up messages to me on this in the comments section below.

Big Hug!

@GetOutOfDebtGuy

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

Creditors Are Calling Me for My Son’s Money. – Alexis

Steve Rhode — Tue, 27 Sep 2011 15:42:57 +0000

From How to Get Out of Debt

“Dear Steve,

My son was working in Dubai. He had a bank debt (credit card and personal loan). He paid back some of the money. On health ground he had to leave Dubai without paying back the debt fully. Now he is in India. But some people makes calls to our home phone and mobile phone and asking us to pay a huge amount.

They say that they are authorized to collect the debt. The calls are from India only. Not from Dubai. Every day they call us. But we are quite helpless to pay this amount. My son has no job now. Iam a retired person. We have no land property or own house to sell off to repay this debt. The bank did not give us any notice with regard to this.

Alexis”

The Answer:

Dear Alexis,

I know of no reason why you would be obligated to repay the loan on behalf of your son if you were not a guaranteeing party on the loans in Dubai.

It sounds like the creditors in Dubai have sent to account out of collection in India and you should probably expect to continue to receive the calls until they give up.

The best strategy at this point would be to try to be friendly when they call but make no promises for payment. The more you allow them to manipulate your emotions in this mater, the more control and power you give them.

Please post your responses and follow-up messages to me on this in the comments section below.

Big Hug!

@GetOutOfDebtGuy

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

Will I Be Arrested on My Flight to China Through Abu Dhabi? – Robert

Steve Rhode — Sat, 24 Sep 2011 18:50:14 +0000

From How to Get Out of Debt

“Dear Steve,

After loosing my job in UAE, I left the country to be back in my HOME country.
After 6 months, I received many SMS or email taht a police case was open against me.
Finally I find a job in China and will fly to Beijing but with connection flight in Abu Dhabi.

Do you think that is dangerous for me to use this flight or I have to take another flight with no connection in UAE or GCC Countries from Euorpe to Beijing ?

Robert”

The Answer:

Dear Robert,

Others in similar situations have reported they were able to make connecting flights in the UAE without a problem. I realize it is a very stressful situation but based on the comments I have read here from others, it appears to not be an issue.

Now, if the UAE was your final destination, that would be a different matter.

Please post your responses and follow-up messages to me on this in the comments section below.

Big Hug!

@GetOutOfDebtGuy

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

I Want to Know If I’m Blacklisted and Can’t Get Back In the UAE. – Ahmed

Steve Rhode — Wed, 24 Aug 2011 20:38:03 +0000

From How to Get Out of Debt

“Dear Steve,

i have been working in Abudhabi ( Al ain ) for almost 2 years , i left on september 2010 , cause i got an offer in ksa , i had a credit card from rak bank , and i have to pay about 42000 dhs, but my company cancelled my iqama , n i go to egypt , then to ksa …

now i wanna go back to uae by visit visa , i want to know if im black listed or not

Ahmed”

The Answer:

Dear Ahmed,

Owing any past due debt in the UAE or any GCC country can be a problem. If you can’t repay the debt and you’ve missed payment there may be an arrest warrant waiting for you. If you cross the border on any GCC country with a warrant against you, you may be detained and your passport seized.

Others have been able to successful make connecting flights through the UAE but many have been arrested if they enter the country. If you can’t afford to pay the debt you should be prepared to go to jail.

Before you return to the UAE you should contact a lawyer there and ask them to find out if there is an arrest warrant out in your name. The lawyer can then advise you further.

Please post your responses and follow-up messages to me on this in the comments section below.

Big Hug!

@GetOutOfDebtGuy

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

I Left Dubai In Debt. I Want to Go Back to Dubai. – Rendeep

Jon Emge — Tue, 19 Jul 2011 21:17:24 +0000

From How to Get Out of Debt

“Dear Jon,

I am in uk rightnow,i was worked in dubai,last 2 years back,now i got a good oppertunity in dubai,i want to go back again,will that be a travell problem?

Rendeep”

The Answer:

Rendeep,

Did you leave unpaid debts or loans back in Dubai? If so do you know of the status of those loans?

If you left owing money, then it may be an issue if you try to return to Dubai. You can contact the banks you owed money to and inquire as to the status of the account(s), and also inquire with the local police as to if any warrants have been issued. If any warrants have been issued, then obviously returning there, may be an issue.

Regards,

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.

If you have a question you’d like to ask about how to get out of UK debt, just use the online form. I’m happy to help you for free.

Dubai Police Blacklisted My Friend Because of My Debt. – Nett

Steve Rhode — Thu, 16 Jun 2011 15:44:35 +0000

From How to Get Out of Debt

“Dear Steve,

My friend is in dubai court because of processing my police certificate

I am presently in Canada under a temporary visa and right now I will be applying for my permanent residence. So I sent my fingerprints to a friend in dubai to process my police certificate. I was able to get a PCC before I left dubai, but due to terrible reasons, I left dubai with credit card and loans debt. I was concerned not only because was able to know that I am in the wanted list in dubai, but also because when my friend tried to claim my PCC, they detained him and took his labor card. The poor guy is going to dubai court this week and he doesn’t know what to do. I also didn’t know that they have a law in uae that if a friend processes another person’s PCC , if blacklisted, then that friend who helps will be brought to a dubai court hearing. He did not do anyhting wrong in their laws, just to help process the PCC..because in the uae consulate here in canada, it says in their website that it is faster to process the PCC if you have a representative or some friend will pr ocess it. Now I begin to think why they advise that in their website..

Anyway, my concern right now is how my friend can surpass the dubai court interview. Do you have an idea also if dubai police will forward my fingerprint here in canada immigration that says I have a case there. Will my PR application be affected?

Whatever information you can give me will help. Thanks.. :(

Nett”

The Answer:

Dear Nett,

Well it is not often that I’m stumped but I have to admit you got me on this one. If it was just you and your debt then being out of Dubai would not be a problem.

So if I read this right, your friend went in to get your police clearance certificate (PCC) for you and somehow they just decided since you were not there they’d grab your friend instead.

I have no idea what they are going to do in court with your friend.

Do you have an arrest warrant in Dubai for you because of the bad debts?

New Zealand has a similar process but has a workaround if applicants there can’t get the PCC.

If you cannot get a police certificate, provide detailed information of your attempts to get one. If we are satisfied that police certificates are not available or it would be unduly difficult for you to get them (for example where the authorities of any such country will not generally provide such certificates), we may instead ask you to make and provide a separate statutory declaration in both English and your own language.

If a statutory declaration is required, it must detail your attempts to obtain a police certificate and state whether or not you, or any accompanying family members, have been found guilty or convicted of, or charged with offences against the law in that country. The statutory declaration should also be corroborated by other information attesting to your character.

You might want to talk to someone assisting you with your application in Canada and see if something similar is available in your situation so you could provide an explanation rather than the PCC.

Well you will need a police certificate if you are applying for permanent residency in Canada. – Source

Please post your responses and follow-up messages to me on this in the comments section below.

Big Hug!

@GetOutOfDebtGuy

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

I’m in Dubai and Was in Jail For My Debts. Who Can Help Me? – Marnie

Steve Rhode — Tue, 07 Jun 2011 13:56:07 +0000

From How to Get Out of Debt

“Dear Steve,

A single mom with kids. Started life in dubai since 1999, met the father of my kids and misplaced him for almost five years now. Did try to live normally here with the help of my salary and bank credit cards.

I was jailed,a guarantee cheque I issued for a friend who leave the country bounced and a credit card filed in the police. Lost my job after jail, did my best to recover but I did not find a stable or permanent job to support my kids and pay my obligations to the bank. Presently, I have police case filed against me,I can’t just easily go out the country till I paid it or by going to jail.

Is there any institutions here in Dubai who can help me settle my total debts of approximately 40,000dhs and as payment, I will be working with them? I can give back 50% to 90% of salary deductions.

Please help me, I don’t want to go back to jail and be away with my kids. With regards to my qualifications, I am a graduate of Bachelor of Science in Accountancy and Secretarial course Having a retail (fashion) experience of 5years in Dubai and also interested in administrative jobs.

Steve, thank you so much with all of my heart for your time. It helps lessen the burden when you know someone out there (like YOU) is more than willing to listen and help in anyway you can. MORE POWER!!!

Marnie”

The Answer:

Dear Marnie,

I certainly wish I had better news. Dubai is probably one of the worst places to owe debt. While it is a growing and modern area its debt laws are certainly centuries old.

Recently I heard about a company in Dubai called ISDM. I know nothing about them except for what I read in their press release. You might want to give them a call at +971-4-399-02-03.

After you talk to them can you please report back in the comments below and let me know what they suggested. My caution level is high with them since I have no experience with them and they might be asking for big fees in advance of any promised help.

Please post your responses and follow-up messages to me on this in the comments section below.

Big Hug!

@GetOutOfDebtGuy

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

I Was Scammed By a Friend I Lent Money to Open a Business. – Jen

Steve Rhode — Tue, 02 Nov 2010 19:57:40 +0000

From How to Get Out of Debt

I have been scammed by a friend to open a business in Dubai. When we found out, he promised to return it along with the charges or interest I get from the bank (like a loan or credit card purchase). It’s been 2-3 years now and he is no longer cooperating.. since he is not paying on time. My interest with the bank kept accumulating and now I have cases from from the banks that I took the money from?

Can I file a case against him? If so what documents do I need from him, he will definitely not give me a cheque? Will I get my money back and all the interest accumulated with it?

Jen

Click here to help people to get out of debt.

This reader question was submitted for site members to answer.

This is your chance to be a hero and help out this person by providing your feedback and answer to the question. Post your response in the comments section below.

If you have a credit or debt question you’d like to ask just use the online form.

@GetOutOfDebtGuy

Desperate Ex-Pat in Dubai is About to Become Loan Scam Victim

Steve Rhode — Sat, 24 Jul 2010 15:22:24 +0000

From How to Get Out of Debt

“Dear Steve,

I am Mary an expat in Dubai. Ive been working here for almost 7 years. I have read your advices how to get out of debt. I have loans and credit cards here but unfortunately, It came to a point that i cannot pay even the minimum dues for my credit cards that’s wny im really having pressure from the debt collectors and it is really stressful. As much as i wanted to apply for a loan or a top up loan here in dubai, to close these cards, i cant do anymore. Due to global recession, banks became stricter in their requirements especially the salary. I am just an average employee here, and my salary does not qualify anymore to any loans.

That’s why i tried to apply loan through the internet. now, I ve been communicating online to a person claiming that he and his company is a legit lender. I already send some proof of identification but im not sending any of my account details yet. Recently, he send me an email saying that my loan is approve but before sending the money to my account here, (since, lender is from ecuador) i need to pay a fee called a LOAN ORIGINATION FEE which is 1.5% of the total loan.

My question is, is there really a loan happening online?

Is there really a fee called LOAN ORIGINATION FEE?

How will i know if he is a legit lender and not a scam?

Pls. see lender’s Details:

Mr. Bill Cox

Company Name: Micro Finance Company
( Bill Financial Loan Company)
Address: N39-234 y Gaspar de Villarroel Edificio Zambrano Quito.
Country: Ecuador
Email: billcoxfinancial@mail2finance.com billcoxfinancial@yahoo.com

Mary”

The Answer:

Dear Mary,

Let me assure you, this is a scam. The first warning sign are the free email address that the supposed loan guy gives you to contact him on.

You are a prime scam target. You are in a bind, hunting for a loan that no legitimate lender will give you, and willing to do just about anything for a loan.

Scammers will eagerly prey on you. They will promise you a loan but will ask for some upfront fee and ask you to send it via wire transfer or Western Union.

Another tip off that this is a scam is the fact that the lender asked you only for cursory information and did not make you complete an official loan application.

Big Hug!

@GetOutOfDebtGuy

Will I Get Caught at the Dubai Border For My Past Bad Debts? – Aman

Steve Rhode — Sat, 03 Jul 2010 15:08:02 +0000

From How to Get Out of Debt

Aman

“Dear Steve,

I was running a company in dubai in a partnership and the partner who cheated me and flew with the money in 2004 the cheques issued under my signatory in 2004. When I realised that I would get in trouble because of this situation I ran off from dubai and came back to india. Now I have an employment offer from dubai government and I would be flying to dubai after 5 years. I wanna know will I get caught at the dubai airport? Am i gonna have any problems ? the thing is the signature on cheque and signature on my passport is not same can i say them that its not my cheque.

I would be thankful to you if you could advice me whether to travel to dubai or not.
Kind Regards,

Aman.”

The Answer:

Dear Aman,

I think the only safe approach is for you to hire an attorney in Dubai to check the criminal complaints and see if one was filed against you. The attorney can better advise you what to expect next.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Big Hug!

@GetOutOfDebtGuy

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

I am on a Visit Visa in UAE and Have Lots of Debt. What Can I Do? – Rina

Steve Rhode — Fri, 25 Jun 2010 16:38:01 +0000

From How to Get Out of Debt

Rina

“Dear Steve,

I am currently on visit visa here in UAE as i have resigned salary from my previous job and got my employment visa cancelled as I got a better employment offer from another company but unfortunately it took them more than three months to start the employment visa processing.

Leaving my old job, they asked me to pay the visa expense which caused two months salary.
I have some credit cards which I defaulted on paying my monthly minimum amount because my previous company delays our salary which is the reason I look for another employment.

My new company took at least three months to start off processing my employment visa, thus leaving me jobless and without visa…I was forced to buy a visit visa in order to stay in UAE and wait for my new company to finish the visa processing. Now I am almost 5 months past due with all my credit cards and one of the banks already forwarded my case in alwasl legal advocates. I am wondering if it will have any effect on my employment visa application which my new company is processing now.

Please help me get out of this situation, as I am alone here in UAE, no family, no relatives to help me.

Rina”

The Answer:

Dear Rina,

If you are already the subject of legal action and an arrest warrant is out for you them it may impact your ability to get the visa. But looking at the standard UAE Visit Visa Application Form I can’t see anything asked that directly applies to your financial status.

As you may be aware, owing debt in the UAE and letting it go unpaid can result in imprisonment. I hope you can get your work situation resolved quickly so you can begin to repay your debt.

Big Hug!

@GetOutOfDebtGuy

Will I Be Arrested and Taken Back to Dubai Because of My Debts? – Christopher

Steve Rhode — Tue, 01 Jun 2010 16:46:14 +0000

From How to Get Out of Debt

“Dear Steve,

I left Dubai this past April because I lost my job and could not pay my loan or credit cards. I was threatened with a travel ban and police case when I could not pay. I tried to find more work but because of economy no one was hiring. Time ran out on me and I left. Now I got travel ban and I know I cannot come back into the GCC. I got a mail from the bank saying that they are going to put a international travel ban on me. Does this mean that if I travel to Europe that I will be arrested and taken to the UAE prision? Please help.

Christopher”

The Answer:

Dear Christopher,

It is my understanding that the travel ban is only for GCC countries. I am not aware of any cases where someone has been stopped at the border for a debt problem in other than a GCC country and sent anywhere.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Big Hug!

@GetOutOfDebtGuy

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

Citibank in Dubai Lied to Me About Settling My Debt

Steve Rhode — Wed, 19 May 2010 18:58:48 +0000

From How to Get Out of Debt

“Dear Steve,

I had a Citibank Credit Card. Last year in december, I went to their collections office in Dubai and told them that I wanted to pay off my dues and close the card for good. After taking their time, a woman came out of her cabin and told me to pay 4207 Dirhams and my card will be closed. I went to the teller and made the payment. I reiteriated that I wanted to close the card for good to which she said once I made the payment it will reflect in the system after 30 days. Now, after almost 6 months, I get a message from the Bank that I need to pay 825 Dirhams. Isnt that cheating?? I went there with good intentions and they misled me and now are asking for more money in the form of finance charges, lete payment fees etc. The collections department is non-responsive on the phone. What happens If I dont pay them the amount which they are asking for. Do I have a case?

I have paid enough to all the banks and also settled my cards with the rest of the banks after paying sums of more than 3-4 times of my actual borrowing. I am tired and want to close this chapter of banks and loans in my life.

My advice to everyone, please please stay within ur limits and spend only by debit cards or cash. Throw away your credit cards or they will haunt you later in life. Say No to Credit Crads.”

The Answer:

Cheating? Hum, interesting statement.

It sounds to me as if the account was not in fact paid off in full and closed. It might have been that a finance charge or last purchase came through after your payment date and that left the account open. Regardless, an account is not to be assumed closed. You need to check and make sure it is in fact closed.

You can check the status of the account either by receiving a final statement showing that it is closed or requesting a letter in writing that the account is no longer open.

If Citibank at the time of your payment had given you such a letter then you would have a case but as it stands now, with what you shared with me, it sounds like you need to pay the 825 Dirhams ($94).

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Big Hug!

@GetOutOfDebtGuy

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

I Got a Loan From Citibank Dubai Days Before I Was Terminated. – Jim

Steve Rhode — Mon, 17 May 2010 14:14:21 +0000

From How to Get Out of Debt

“Dear Steve,

I worked in Dubai from 1995 to 2005. I was terminated from my employment in the year 2005 and I was sent home to my home country. Few days before I was terminated I got a personal loan from Dubai CITIBANK. During these times as I remember I was carried away by my fear of informing Citbank about my termination for fear that I might be put to prison and could no longer be home with my wife and a 3 year old son.Year 2007, a citibank representative in my home country (Philippines) was able to locate my home address and was looking for me.

My children did not tell the citibank personnel where I am at the time since I was still at the capital city looking for an overseas job again. I am now working in one of the GCC countries till date. Recently my family back home received a final Demand / collection notice from a loc al collection company claimed to be authorised by Citbank as stated in their demend letter. My total obligation as stipulated in the latest demand letter is now AED95,000.00 from a principal of AED70,000.00

In view of the above, I would like to asked you the following;
1. Why Citbank is still chasing me where in fact I believe my loan was insured?
2. Can Citbank still obliged me to settle the said loan even if I am now in my home country?
3. Is this collection agency who wrote me this demand leter is legally aouthorised to demand for the repayment of my loan with dubai-citibank?
4. Would it be appropriate for me to contact citibank -dubai and arrange to pay in regular monthly installment affordable for me until th eamoun tis fully paid in matter of 4-5 years?Will they(citibank) agree on my terms?
5. What are my othe roptions as I am wiling to repay it but not at one time payment as I do not have that big salary to pay for it one time and I am much willing to pay it on regular monthly installment which is convenient for me since I still have a family to support.

Jim”

The Answer:

Dear Jim,

1. Why Citbank is still chasing me where in fact I believe my loan was insured?

Don’t know.

2. Can Citbank still obliged me to settle the said loan even if I am now in my home country?

Yes, but you said you are in a GCC country and not your home country, right?

3. Is this collection agency who wrote me this demand leter is legally aouthorised to demand for the repayment of my loan with dubai-citibank?

Don’t know.

4. Would it be appropriate for me to contact citibank -dubai and arrange to pay in regular monthly installment affordable for me until the amount is fully paid in matter of 4-5 years?Will they(citibank) agree on my terms?

It is certainly a good idea to contact Citibank Dubai directly and see if a suitable arrangement can be negotiated. Since mutually acceptable terms must be negotiated between two parties I have no way of knowing if you can reach a satisfactory agreement with the.

5. What are my other options as I am wiling to repay it but not at one time payment as I do not have that big salary to pay for it one time and I am much willing to pay it on regular monthly installment which is convenient for me since I still have a family to support.

Your other option is to do nothing now and save up at least half the debt and when you have that, contact them and see if they will accept that as payment in full.

You might also want to contact a lawyer in Dubai to check and see if their is a court case open in your name.

Big Hug!

@GetOutOfDebtGuy

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

I Am in Dubai and Scared the Police Will Come to My Office and Drag Me to Jail. – Ismail

Steve Rhode — Fri, 14 May 2010 16:39:42 +0000

From How to Get Out of Debt

“Dear Steve,

Dear sir,

My name is ismail, i am an india working past from 2 years in dubai.

I am working in [XXXXX]. as an Auto Cad draughtsman. I was terminated from my work on 10 th of Dec 2008, On my working days i had taken a loan & credit card from salary transfer a/c NBD bank amount of 75000.00 + 8000.00 Dhs. this loan i took for my sister wedding. till my last working day i was regular on my monthly instalment,

And also have a credit card in RAK & Barclays bank. but due to job loss i was not able to pay my instalment properly but i paid how much i could effort. I requested my company Leader Interior LLC take me back, And they agreed to take me back with same package on May 2009.

After joining back to same company, i informed all my banks but i did not have any document. It took 1 month to get all document which prove that i have joined company again. But NBD did not wait of it and they bounced my cheque made a police case against me, when i spoke to bank they told me to clear credit card and bank will give realized letter for police, in the same time bank has freezed my a/c and from past 4 month im not able to withdraw cash from my a/c.

Last month ie 1st week of set 2009 i cleared my credit card, this money was sent from my home town india, by selling my mother’s gold and im the only son in the family rest 3 sisters, and a old mother and father fully depend on my earning. After clearing my nbd credit card i went and spoke to bank to realise my a/c and police case but they keep on telling me its under process will take time, this is happening from past 3 month. Due to this im not able to make payment for other banks RAK and Barclays bank. I informed both bank that my a/c is freezed im not able to withdraw cash so how can i pay, But RAK bank consider my reason as a fack and bounced my cheque made police case. They used very harsh and bad language.

Now i have 2 police case and i am not getting salary from past 3 month, i really dont know how to survey here without money. My mother is sick, i dont have money for her treatment. I am really worried about my family, my job. i really dont know which door to nock. i have a job but i dont get salary how will i live. i even tried to commit suicide but when i think of my old parents i fail to do so. i am really scared that when police will come to my office and drag me in jail.

Please guide me and help me to come out from my problem.

What should i do?

thanking you

Ismail

”

The Answer:

Dear Ismail,

Well I doubt the will “drag” you to jail. But the possibility of jail time in Dubai for bad debts is very real.

I would urge you to find an attorney in Dubai that can advise you about your legal problems.

Outside of coming to some mutually satisfiable arrangement with your banks, the being asked to come to court for a hearing on this matter is a real possibility.

The underlying problem here is the Dubai doe not have any legal process to allow people to work their way out of debt. There is no personal bankruptcy process and lenders seem to not be enthusiastic about taking partial payments. Their demands are unreasonable, but without other options.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Big Hug!

@GetOutOfDebtGuy

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

My Brother Has Been Arrested in Dubai for Debts He Owes and He Cannot Leave the Country. – U

Steve Rhode — Fri, 07 May 2010 22:10:26 +0000

From How to Get Out of Debt

“Dear Steve,

This is in connection with my brother, who officially visit to Dubai to accomplish some assignments on behalf of his employer. Sometimes back while he had been working in Dubai he obtained some loans from banks. Before the loans were finally cleared he had to abruptly return to Pakistan due to sudden illness of his father. Who subsequently died and circumstances did not permit him to go back and resume his job.

As a consequence, when this time, he handed at Dubai Airport, the authorities detained him due to default of bank loans. After confiscating his travel documents he was allowed to enter Dubai.

Now his visa is expired and his assignment is over and he is not allowed to return back. Unfortunately the present debt amount (Around AED 50,00) is out of our reach to pay back in one or two months. There is no person in Dubai who could give his guarantee.

If you have any solution in this case, please reply.

Regards

U”

The Answer:

Dear U,

There isn’t a thing that can be done about this except for the debt to be repaid. The law in the United Arab Emirates (UAE) allows people reentering the country with criminal charges for non-payment filed against to be held in jail until the debt is repaid.

Please read a previous post of mine for more information. See Iâ€™m Worried Iâ€™m Going to Get Arrested For My Bad Debt in Dubai and Sit in Jail for a Long Time. – William

@GetOutOfDebtGuy

I Was Sentenced to Prison For My Debt in Dubai. – Asif

Steve Rhode — Sun, 25 Apr 2010 19:10:49 +0000

From How to Get Out of Debt

Asif

“Dear Steve,

Hi I have a loan in a local bank in Dubai and due to some overdue they filed a case against me and i was taken to the police custody and i came out by depositing my passport, after that i was called to the dubai courts for first hearing and i was sentenced for a 1 month imprisonment, i again appealed in the court and they have given the second hearing which they have given on 24th sept 2009, i am in an idea to pay the over due and ask for a no objection letter from the bank and to produce the same in the court and get release and to release my passport from the police.

Meantime the collection agency called me and asked me to pay at least one installment today any how in order to avoid any further consequences, i told them i have time till 24th sept to sort out the issue but still they need one payment or else they are saying that they will block my name in the system and i have to pay the full amount 54000 dirhams to close the case..

i am just worried about this i am staying with my family and i dont know what to do, can u please suggest me something and guide me accordingly?

Asif”

The Answer:

Dear Asif,

The problem here is that now that the courts have your passport and have taken some action against you, the bank and collector have the leverage.

You might want to try to contact the local bank directly, make an appointment to go in and meet face-to-face and explain how you want to repay this debt in a manner you can afford.

As long as you can present yourself in a calm manner and discuss the situation with a promise and ability to bring the loan current, they may accept that payment. They may not.

The collector is hired to not be nice or accommodating to you. They are there to scare and pressure you and it sounds as if they are doing that part of their job well.

If you can demonstrate you have the capability to resume your normal payments and bring your account current, your proposal sounds reasonable. But it takes a meeting of the minds of both parties for there to be an agreement.

What is unknown is how many times before people have presented the same sort of solution, received their passport back, and then fled the country. If that has happened before, the bank may be less willing to entertain such a solution in order to keep you around to pay.

You can always contact a lawyer in Dubai for legal advice about your situation.

By the way, how were you treated at the court appointment? What was the hearing like?

Big Hug!

@GetOutOfDebtGuy

As an Expatriate How Can I Prevent Myself From Getting Jailed in Dubai for Debts? – Elmer

Steve Rhode — Fri, 22 Jan 2010 23:35:04 +0000

From How to Get Out of Debt

Elmer

“Dear Steve,

I’ve been living here in Dubai for the past four years, in that years passed by, I have accumulated a large amount of debts which i can no longer pay with my present salary. I have four hundred thousand dirhams loan from different banks. My wife’s salary plus mine combine is around 15,000 dhs. We’re having difficulty now making both ends meet because our children lives with us adding more expenses on our monthly budget.

Now, my question is – How can I legally prevent myself from getting jailed from defaulting payments? Is there any lawyer in this Country that protects the rights of an expatriate declaring bankruptcy. Is there any way I can re-structure my payment? What is best best solution to my problem?

I don’t want to go in jail, I’ve been reading a lot of testimonies about people getting jailed from debts here in Dubai with this amount that I have, and there is no way that you’ll get released unless you pay all your debts. How can a person pay his debts if the bank put them in jail?

Elmer”

The Answer:

Dear Elmer,

Living in the United Arab Emirates (UAE) and being in debt is nothing but problematic. You ask if you can go bankrupt but no laws in Dubai allow you to do that, so that’s out. You ask why being jailed makes sense since you you can’t pay your debts while in jail but you overlook that jail is punishment, not logic.

The consumer debt laws in the UAE are archaic. No regulations provide any framework to allow you to workout a negotiated solution with all of your creditors based on what you can afford.

Maybe you’ve noticed that the traffic is getting lighter in Dubai and that life isn’t quite as hectic as it once was there. This is because of the masses of people fleeing Dubai in these uncertain economic times.

My best advice, contact your embassy and ask for a recommendation of a local lawyer to help advise you about the realities of defaulting on debt in the UAE or get the fuck out of the country before you wind up in jail.

You might want to leave your car at long-term parking at Dubai International Airport with the keys and a note in it. According to reports and the 3,000 abandoned cars at the airport, It seems to be the preferred way to turn the car back in.

Big Hug!

@GetOutOfDebtGuy

Jailed in Dubai for Debt. One Person Shares Their Experience.

Steve Rhode — Sun, 17 Jan 2010 16:55:37 +0000

From How to Get Out of Debt

A businessman who experienced the highs of property boom in the Middle East is now adjusting to life on social welfare in Wexford after his Dubai dream quickly turned into a nightmare with the arrival of the economic downturn.

Brendan Coote recently ended up in prison in Dubai following a dispute with his landlord and only the intervention of his family, who were forced to hand over €60,000 to the landlord, eventually secured his release.

After almost 12 years in Dubai, Brendan is now living in Barntown with his parents Bob and Anne Coote. Bob is a retired engineer, who worked with Wexford County Council, while Anne currently works with Oxfam in Wexford.

Brendan worked in Dubai as General Manager for event branding company CPL International LLC, which enjoyed success looking after many of the countless promotions, launches, events and exhibitions throughout the United Arab Emirates.

‘I spent ten years living the dream,’ said Brendan, ‘My favourite pastime was showing visitors around. I always did it with such genuine enthusiasm and love for the country. We were the world’s number one at this, the region’s number one at that. We had more of this and that then any other country.’

However, by January of this year, as the boom turned to bust in Dubai, the company’s business had plummeted by 85 per cent.

‘The implosion was rapid and hard. Almost overnight hundreds of firms closed and owners fled. Investors withdrew all their funding and the real estate and property development sector started to sink,’ said Brendan.

As a result of the downturn he moved to cancel a rental agreement for office and warehouse space with a local landlord.

‘Every business transaction in Dubai that involves payments or repayments over any period of time is backed up with a security cheque to the value of the total deal,’ said Brendan.

He had signed a three-year contract for office space at an annual cost of €60,000, so his landlord was in possession of nine post-dated company cheques as the rent was to be paid in four-monthly instalments of €20,000. ‘However, he had agreed on my insistence to having a “get-out clause” in the contract. Once I gave two months’ notice and two months’ advance rent I could terminate the contract and leave,’ said Brendan. ‘On sending two months’ rent and vacating the premises I was told that I could not leave. As the landlord had three years’ worth of post-dated cheques I closed the bank account and said “I’ll see you in court”. He bounced the cheques,’ said Brendan.

However, to his surprise he found that his rental contract did not matter when he got to court. Brendan said the judge was only interested in two things: if the cheque was his and the signature on it was his. When these facts were confirmed he was taken to prison on October 5 last, which would be the first day of around six weeks behind bars for the businessman.

He spent two weeks in the first prison, awaiting sentence, and described it as a ‘cesspit’.

‘It was a jail designed for 60 people and housing over 140. It stank like the orifice of hell and housed a permanent force of local drug addicts bent on intimidating and lashing out at all newcomers,’ said Brendan.

‘It had one hole in the ground and one shower for 60 inmates. The stench and feeling of complete hopelessness will stay with me until the day I die.’

Two weeks later he was brought before a judge for what he said was ‘a total of five seconds’ and sentenced to one month in prison.

‘I had written a full defence that he had supposedly read, but nothing was said and I was led out. I was aghast. I could not speak or make a case to anyone,’ said Brendan.

After he was sentenced he was then moved to Dubai’s central prison, where conditions were much better.

After he had served his month he was due to be released and was being led away before being called back again – to be told his landlord tried to cash another of the cheques, knowing it too would bounce.

Wexford TD Brendan Howlin was among those involved in diplomatic efforts to secure his release, having been contacted by the Coote family, but it was his family that eventually secured Brendan’s release.

He said they all took from their own savings and managed to come up with the €60,000 required to pay off the landlord and secure his release from prison.

His brother Robert and sister Nadia, as well as her fiancé Andy, travelled over to Dubai, but their efforts to reason with the landlord, among others, fell on deaf ears and in the end only the payment of a year’s rent would do. However, Brendan’s release from prison had to be carefully choreographed as he said other creditors of CPL International LLC were circling and once payment was made he had a short window to get straight to the airport and on a plane home. All his possessions, from his Jaguar to the expensive diving gear, that remained at his apartment are now relics of his former lifestyle.

‘I had a 12-hour window where the emigration computers would not be updated with new cases. At one stage I thought my creditors would all put through cheques and I’d be there for years,’ said Brendan.

He said the company he managed was itself owed a lot of money, mainly by property related companies who themselves had no way of paying due to the recession. Brendan said this ‘domino’ effect is now wreaking havoc in Dubai, where the spiralling debt problems became worldwide news last week.

On Wednesday the Dubai government announced that one of its main investment vehicles, Dubai World, could not pay its bills and wanted to suspend repayment of some of its $60 billion debts until May.

Brendan said he now has start from scratch again, having put whatever savings he had into his failing company over an eightmonth period. However, his new start will be here in Ireland, where he said he has already applied for quite a few jobs.

‘Everything I worked for is lost. If I ever go back to Dubai I’d be sent straight to prison,’ he said. ‘And without my family I’d still be there.’ A BUSINESSMAN who experienced the highs of property boom in the Middle East is now adjusting to life on social welfare in Wexford after his Dubai dream quickly turned into a nightmare with the arrival of the economic downturn.

Source: Wexford People

@GetOutOfDebtGuy

Will I Be Allowed to Leave Dubai Even Though I Owe Money? – June

Steve Rhode — Thu, 24 Dec 2009 14:39:40 +0000

From How to Get Out of Debt

“Dear Steve,

I’m working on an engineering consultancy as autocad draftsman, im already 2 years but til now, our company didn’t got any new projects for the whole years. I got another job in Saudi Riyadh and theyre still waiting for my report and ready to start anytime.so i planning to file resignation and going back to my home country in philippines to process my all documents going to Saudi. I have left balance debt to Standard Chartered of 19,000 aed and Emirates Bank of 9,000 aed but im a continuous and good payer without any delays at the present.

Is the Bank allowed me to leave Dubai and going to Saudi to work and continue to pay the balance debt through Al Ansari Exchange Branches in Saudi? Are they hold me in the Airport even im currently pay the credits / debts?

June”

The Answer:

Dear June,

The bank would have no reason to block your ability to cross the border as long as your debts are paid in accordance with the terms you agreed to. So if your debt is not delinquent the bank would have no reason to open a police case against you.

Just make sure you keep paying at least the monthly minimum payment on those debts and you should be fine.

Big Hug!

@GetOutOfDebtGuy

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

Will I Be Arrested in Dubai For My Debts? I Have a Flight Connection to Make There? – Sheikh

Steve Rhode — Fri, 18 Dec 2009 15:32:39 +0000

From How to Get Out of Debt

“Dear Steve,

I was in dubai for more than 15 years, and had to leave dubai in pain and on sad grounds due to sever financial hit and serious family matters. I had bank loans and credit cards which I could not manage to pay for 6 monts nnow and tha banks kept on calling. I wanted to go back to dubai as I have a job offer, but the banks have already filed a police case against me. I also want to start paying back to the banks and card companies, but the situation the banks has created and the law of dubai does not give me strength and I am helpless. Now since I have got a job in USA and I am scheduled to travel to new york my flight is via dubai and I am very scared. I have seen people dieing in dubai jails and they dont even let your relatives know what has happend to you.

Just want to know that if I have bank loans and credit card loans in dubai, and Ihave left Dubai almost 8 months now. I am scheduled to travel to USA and my flight is via dubai. Will I be arrested at the airport as my next connection is only after 3 hours

Sheikh”

The Answer:

Dear Sheikh,

The consumer debt situation in Dubai is archaic. Yes, people do go to jail in Dubai for debts and I think you should take the issue seriously knowing you have a police case against you. Will you be arrested on your layover to New York, quite possibly.

I am sure that the border control agents in Dubai will make an attempt to check you out as you pass into the country. Nobody has any way to know if they will detain you and arrest you.

The Dubai jails are full of debtors and I’ve not heard of one of them dying from their stay. As crazy as this sounds, the quickest way to clear your debt in Dubai is to actually go to jail. Most go for only a couple of weeks, some a month or so. It really depends on how much debt you have. I’ve even heard the story of one person that used their holiday leave to go do their jail time so their boss never knew.

The advantage of going to jail is when you get out, the debt is cleared. It is almost like the advantage of bankruptcy available in many other countries. In Dubai, bankruptcy is spelled j-a-i-l.

The smart move would be for you to contact a lawyer in Dubai and work out a solution to clear your debt as quickly as possible or to get specific legal advice about your upcoming border crossing.

Big Hug!

@GetOutOfDebtGuy

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

I Have Been Blacklisted in Dubai. – Mani

Steve Rhode — Tue, 15 Dec 2009 21:31:28 +0000

From How to Get Out of Debt

“Dear Steve,

Hi
actually this is a long story but i will try my best to scan in short..

i was working in dubai since 8 years…but as this recession cam in 2008 july for me i was kicked from my job which was related to reatil banking, after that i got job in MAF(OCTOBER 2008) well known company but cheap in agreement..they offered me 5000 dirhams which i accepted hapily coz it was same wat i was getting, onwards when i came on their visa they have cut down my salary to 2500 which was not acceptable for me..

i was having my car loan and 2 used credit cards with me i have requested them also to give me my exect salary on which i was agree. but they did not..and after that i have claimed in sharjah free zone but they also favoured that company which was the sister concern of that(innovation marketing) .

And after all these they terminated me without giving a termination letter(even i didnt resigne), and told me to exit, still my visa was not pasted on passport and i had to…otherwise i was over stay, and iwas the only one who had to pay tha..so what u ppl say wat rule say in this situation when i was sacked without informing and without getting any valid proof to show to banks

i came back homland in JANUARY 2009 even i work here(homland) i cant payback my debt i wanna com back to dubai and wantto overcome my debts,,

Important:I can fight legally from my country coz I dont wanto get bann for those ppl who decided my fate for not and also i am ban in other gcc like saudia arabia and kuwait

i came on resident visa H but as i explained they did not pasted my visa because i was not agree what they wre offering and they have given me my visa after a delay when iwas back in my hometown and than i got and i came

as i explained those scammers have their sister concern companies in sharjah free zone and i went to their legal department also but they just favoured that company which was located in their free zone and withdrawn my chase by saying that either u go back or stay in clear words on salary wat they r offering now after coming

Mani”

The Answer:

Dear Mani,

This is certainly not the first time I have heard of gross unfair treatment of people in Dubai. I’m sorry you had to live through this. It is kind of ironic that you were working in retail banking.

The bottom line for this issue is how to resolve the outstanding debt you have back in Dubai. How much debt is that? Are you earning money now that you can use towards repaying that debt?

As far as the employment issues go, you would really need to find a lawyer in Dubai to represent you in those matters.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Big Hug!

@GetOutOfDebtGuy

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

I’m a College Student in Dubai and Got a Credit Card From Campus Salesman for Emirates Bank. – Isaac

Steve Rhode — Mon, 14 Dec 2009 18:24:45 +0000

From How to Get Out of Debt

“Dear Steve,

Had been studying in dubai for over 4 years. One evening right outside my college I see a number of Emirates Bank Salesman giving away Applications forms for a Student Credit card. All they needed was a passport copy and I had a credit card with a spending limit of 3000 Dhs…

I Had that CC for about 2-3 years during which I paid off my debt a nmumber of times and then spend money using it again…

Finally My time came to leave Dubai and I Paid my debt back….But I still had to pay back 300 dhs and I was literally broke and had already paid 3000 dhs……

I was expectin to come back to dubai with a couple of months but never came back there….during which i forgot to pay back the 300 dhs…..

2 years later I turn on my sim card(my dubai mobile) and I get an SMS sayin I have a 3500 dhs debt……..
They hadn’t taken any sort of signed blank check from me or anything…..

I have not visited Dubai since…What do you think is the best way around this situation?

THey gave me a CC when I was a student …..n 100 $ became a 1000$…What Do I do?

Isaac”

The Answer:

Dear Isaac,

I’m afraid you fell for the same college credit card marketing that students in the United States get taken by all the time. The marketer for Emirates Bank was passing out credit card applications and made it very easy to get the card.

The reason they did this in the UAE to you and the reason it happens to students all over the world is simple. College students are of legal age to enter a contract, don’t know better, and are attracted to the lure of their first credit card.

The unknown factor here is if the current balance of 3500 is the result of fees and penalties on the 300 you left unpaid or if they are claiming the entire balance due again.

When it comes to debt in Dubai there is no real way ‘around’ the situation. The best course of action at this point is to call Emirates Bank and get an understanding of what they say you owe. You could enter into a payment arrangement to repay it or come to some agreement of an amount less than 3500 you could pay to satisfy the debt.

If you are living outside of a GCC country then you don’t need to worry about being arrested for this debt but if you are planning to return to UAE, Dubai or another GCC country you should get this resolved before you cross the border otherwise you might be arrested and find yourself in jail.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Big Hug!

@GetOutOfDebtGuy

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

I’m Trying to Get a Visa in Dubai But I Owe Money. – Mike

Steve Rhode — Wed, 18 Nov 2009 19:56:44 +0000

From How to Get Out of Debt

“Dear Steve,

I came here to Dubai from 5 years , like all the people i was working normally, i had loans ( hsbc, standard ) (personal loans ) and some credit , in January the work closed and i went out my country , i came back in last sep on a visit visa, and now i wanna renew my visa the right on the visa paper that i had a police case , i have only a 10 days till my current visa to finish , and i dont have this big amount of mony to pay all the banks so what shall i do ?

Mike”

The Answer:

Dear Mike,

If I read your question correctly, there is already a police case against you for not paying debt. If that is correct then you have two logical options. The first is to leave the country, the second is to deal with the debt. Depending on the amount of the debt one of the easiest ways to deal with it is to go to jail for three weeks and leave with the debt cleared.

However, if you do have a case filed against you it seems wise that you should visit with a lawyer or immigration attorney to get some specific legal advice in Dubai.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Big Hug!

@GetOutOfDebtGuy

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

How Can I Make Sure There is No Travel Ban to Prevent Me Leaving Dubai? – Aftab

Steve Rhode — Tue, 17 Nov 2009 19:55:49 +0000

From How to Get Out of Debt

“Dear Steve,

I have credit cards and personal loans in Dubai and I am paying them in bits and pieces every month. My monthly payments is exceeding my curent income and due to the late payments and back log which I have it is so difficult to get them back in control. I can’t see any solution to this problem as the amounts are huge and it is way out of control. I can’t even get any further loan because of my bad credit history and my company is not listed with most of the banks.

My question is, that if I plan to exit the country how can I ensure that the banks has not imposed a travel ban on my pasport yet and I will not be stopped at the airport? as they always threaten me by sending messages that the travel ban is imposed to put a pressure for payment. I travelled to U.K in August without any hassles under the same circumstances.

Aftab”

The Answer:

Dear Aftab,

The best option would be for you to find a local lawyer in Dubai that can research this and make the inquiry for you.

Steve

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Big Hug!

@GetOutOfDebtGuy

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

My Brother is in Jail in Dubai for Debts. – Jiv

Steve Rhode — Thu, 12 Nov 2009 16:34:26 +0000

From How to Get Out of Debt

“Dear Steve,

I have read a lot of of your advices from different problems. I am based in Dubai and my case is almost similar to those who have problems with the banks, but it’s not actually me but my brother.

The situation is, he and his manager went to the banks to settle his loans, but banks told them to go to police because they’ve already filled a police case against him. So, they went there and then they did not allow to leave unless pay the full amount which the bank is asking.

My question is, if we pay the full amount, can we apply for the new visa for him or, can Dubai issue new visa for him? Or can they give a clearance after they release him?

Waiting for your reply and more power!

Best regards,

Jiv”

The Answer:

Dear Jiv,

It is my understanding that as long as you can prove the debts have been paid then all the other issues can be resolved. Just make sure you keep the original documentation showing the court case is closed and the bank has released him from his debt.

I have not heard of any cases of people being denied visas or being kicked out of the country after resolving the debt problem.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Big Hug!

@GetOutOfDebtGuy

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

Citibank in Dubai Wants Blank Cheques From Me to Repay Debt. – James

Steve Rhode — Thu, 05 Nov 2009 15:26:04 +0000

From How to Get Out of Debt

“Dear Steve,

Having left the country due to losing my job in the early part of the year (a common occurance in Dubai!). However I had left about 40,000 AED of debt on my Citi Bank credit card. I managed to make payments till July but had not paid for 3 months. Fortunately I have kept constant contact with them and they seem to be quite willing to give me an option to make these payments back without sending me to jail!

This I hope I can sort out but they do want this in the form of 12 cheques. However I spoke to my bank and they appear to have cancelled my bank account. I came back to this country with the intention of first getting my debt in order as well as my life. It just is so complicated I fell like giving a two finger salute and getting back on a plane.

Really want to understand what happens if my bank account is cancelled. Lloyds have a policy of 25k AED minimum per month salary to open an account. Is this a common thing with all the banks now? If they do close my acount and I need to get another one any advice who is easy to get sorted quicky? As I need to have cheques to make an arrangement with Citi Bank it presents a problem with me paying it back.

Thanks in advance for your advice. I realise it is not only me going through this and I wish all those luck who may be going through a similar situation.

James”

The Answer:

Dear James,

Based on your spelling of Cheques and realise I assume you are somewhere back home in Europe and probably the UK.

If your attempt is to repay this debt but you are not returning to the UAE at this time, to avoid arrest or because you don’t have a job, then I think alternative arrangements can be made.

If you can afford to make the first twelve payments of about £546 then I would send the first payment to Citibank UAE via an international wire transfer from you bank back home. This will show your intent on promptly repaying the debt and you can then explain the bank situation to them. If you are unable to get an account opened soon then just keep making the payments to them from the account back home.

There is no requirement that any bank open any account for anyone.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Big Hug!

@GetOutOfDebtGuy

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

I Have a Police Case Against Me For Non-Payment of Debt in Dubai. – Abhu

Steve Rhode — Wed, 23 Sep 2009 14:21:55 +0000

From How to Get Out of Debt

Abhu

“Dear Steve,

My question is that i need help. I am based in Dubai and without a job since over 3 months and was the only bread earner of my family way back in Mumbai, India. I am in debts since had taken a loan and credit cards. It is around 1,10,000 AED but dont know how much in dollars and now due to non payment I have got a police case due to non payment and need help and advice.

Abhu”

The Answer:

Dear Abhu,

You don’t need me, you need a lawyer in the UAE to advise you in this matter. The consequences are very serious and you can easily wind up in jail unless you can find a legal remedy to this situation.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Big Hug!

@GetOutOfDebtGuy

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

If I Go to Jail in Dubai For Bad Debts Will My Debt Be Cleared? – Katrina

Steve Rhode — Wed, 23 Sep 2009 13:56:40 +0000

From How to Get Out of Debt

Katrina

“Dear Steve,

I’m still one of the lucky employees here in Dubai who has their job right now. But I’m stuck with bad debt for my credit card and loan. My current salary is not enough to pay my dues,even how hard i try to budget it… I have plans before to just leave UAE, and back to my home country. But, i know that it will be more complicated, because there is shortage of employment in my country.

Now, i’m really stuck in here…the banks are always threatening me, and i’m really stresses and frightened, so i usually ignore their calls , because they are not going to listen on you. What they wanted is just produce the money that they need on which way you could. It’s really affecting me…

It has come to the point where in i could sleep.. and it affects my job.. After months of stress from the bank, i started to feel numb.I have prepared my self for the worst.. ending up into jail… I just need to know if i will be in jail, and sentence the terms decided by the court will my debt be cleared?

I heard a lot of rumors and In fact a friend of mine, when she was in jail for same case, after 2 months, all her debts are waived. And she was not deported in to our home country. And now she’s looking for a job.

Please let me know, if i served the prison for my case for bad debt will it be waived off? And will i be deported after the jailed terms? Is there any pro bono lawyer here in Dubai, who can i asked for advise?

Katrina”

The Answer:

Dear Katrina,

I had not heard about debts being cleared with prison. You will really need to check with a lawyer in the UAE. I wish I had more information for you, but I don’t.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Big Hug!

@GetOutOfDebtGuy

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

Bouncing a Check Can Put You Behind Bars For Years in Dubai

Steve Rhode — Mon, 14 Sep 2009 10:55:24 +0000

From How to Get Out of Debt

A recent New York Times article on the perils faced by debtors in Dubai, United Arab Emirates. More needs to be written about the impossible situation in Dubai when it comes to resolving debts faced by even your average person.

I certainly have answered my share of debtor questions from people worried about their Dubai debts. Even in a modern world where certainly it can’t be true that a debtor’s prison still exists, it does. And that place is named Dubai.

The consumer debt situation is frankly, out of control. Rather than resolving debt problems, the only recourse when you lose your job or have a reduction in income is an historic approach, flee the country. I know, it sounds so two centuries ago, but it is true. Reports of thousands and thousands of abandoned vehicles at the airport in long term parking are not just interesting, but true.

Knowing that bills can’t be paid, individuals and families of workers not from Dubai, are packing up and flying out of the country ahead of police and prison for as little as a single bounced check. And people need to do this quickly and as soon as they realize that their debt situation in Dubai is going to not be in compliance with the promises made.

What Happens When a Check Bounces in Dubai

If there are insufficient funds, the bank will return the cheque to the person presenting it. He or she can then file a complaint with the police, who will issue a warrant for the signatory’s arrest and notify airports to prevent him leaving the country.

At present, the courts judge these cases solely on whether the accused has issued a cheque that has bounced, according to Hassan Arab, the head of dispute resolution at the law firm Al Tamimi & Company.

“A bounced cheque, for whatever reason, is a crime,” Mr Arab said. “The court will not go behind the reason of a cheque.”

What is more, each transaction is considered separately. So if you bounce two cheques, those are two cases, and two sentences. Source

These are not new laws, in fact they are age old laws based on the foundation of Egyptian civil law and Islamic law, known as Shariah.

And the reason there is so much focus on the bounced check is that most financial commitments are paid by checks, many which are post-dated. Take for example renting an apartment. A renter must go to a bank and take out a loan for the entire rent due the landlord for the term of the lease. The consumer then must give the bank post-dated checks to make the loan payments. It is a system of financial transactions and customs that we would not recognize in the West.

… a rising number of businesspeople have been sent to jail for going into debt. Bouncing a check is a criminal offense here. That fact has begun raising questions about the fairness of Dubai’s laws, especially among the foreigners who make up about 90 percent of the population. Source

As an example of how dire the situation is in Dubai, take the case of Simon Ford, the founder of a site, BlueBananna.com, that operated in Dubai. When things turned tough he came to the realization that he had only one option, and that was to flee the country to try to work out some solution to his debt problems. As he left the country he published a public letter to help explain his situation. A letter which typifies the experiences of many in similar situations.

Dear all bluebanana.com customers, suppliers, and people whose lives have been effected,

I wanted to write a letter to the Dubai public to apologise for the set of circumstances that have lead to the closure of bluebanana.com and my departure from Dubai.

I am not trying to justify that what has happened is morally correct, it most certainly is not, but there is a very stark reality in doing business in UAE which unfortunately results in the most horrible decisions having to be made.

We have continued to work with financial institutions and suppliers over the course of the last few days to see if the business can continue in some capacity, but this has now become impossible, resulting in the immediate closure of the business.

This letter is a formal and personal commitment to repay every last Dirham to everyone who is owed money from bluebanana.com.

This includes every customer whose experience hasn’t been honoured, our suppliers who have been so supportive over the last few years and have now been let down in an unprecedented way, every bank who has believed in us and lent us money, and of course every employee of bluebanana.com, all of which have worked so incredibly hard over the course of their time with the business and have been put through absolute hell during the last few weeks and certainly the last few days.

On a personal level, I have been through the most soul destroying and emotionally horrific 4 days of my life, and am likely to continue to do so for some time as my integrity is repeatedly called into question and rumours of me stealing people’s money, amongst other accusations, grow out of control in Dubai.

The reality is I have left with nothing but the simple fact that my business’s failure has effected many people’s lives in an unimaginable way and left many people burdened financially with unpaid dues. For this I am eternally sorry and am committed to taking personal responsibility to paying back everything that is owed, no matter how long this may take.

The unfortunate reality is that the businesses debt accumulation has grown exponentially since the last quarter of 2008, with further liabilities being accumulated with the desperate objective of keeping the business alive and avoiding what so many other businesses have done, simply stopped paying their staff.

Tragically, the debt of the business reached a level on Thursday 18th June that personal threats were being made against me and my family which left me no choice but to leave 4 years of passion behind and take my family out of the country before start of business Sunday 21st June.

I have since been informed that certain individuals arrived at my place of residence in Dubai at the start of Sunday, confirming that the follow through on many of the threats was very real.

I am not running away from debt, I am purely protecting those dearest to me and getting out of a country which, due to the lack of structured bankruptcy laws and a banking system which has zero flexibility on loan repayments, drives people to make horrible decisions.

During the course of this week, a large number of bank loan payments would have cleared from the bluebanana.com account which would have resulted in no cash left for my team to make their own financial commitments.

Removing this cash has allowed payments to be made to creditors, plus money which is currently being transferred to employees accounts in Dubai.

I apologise if this is viewed as the wrong thing to do, but I feel that my priority had to be to ensure that staff had something, if not all of their salary, together with short term loan payments to allow the restructure of personal liabilities over a longer period of time.

For those people who feel the need to create elaborate stories regarding my departure, this I suppose is inevitable, but I ask to you to consider the truth and watch as I fulfil my commitment to repay everything owed.

I have set up an email account for people to contact me with regards to specific outstanding payments, but will proactively contact all outstanding on our records over the course of the next 48 hours.

I am sorry Dubai

Yours Sincerely,

Simon

Bluebanana.com

Multiple reports from Dubai tell a story of a legal system that is now getting so mired in debt issues that it does not have time or space to deal with other criminal issues. The police are spending more and more time chasing debtors than protecting the public from other offenses.

The government of Dubai, which is one of seven members of the emirates federation, has not given out numbers of those arrested for debt. But lawyers say the numbers have risen substantially since the global financial crisis hit Dubai last year. There have been so many arrests that lawyers and even the police have begun complaining about the pressure, saying debt should be handled in the civil courts. “Sadly now, as a police force we have been involved in a matter that shouldn’t have been under our mandate,” said Lt. Gen. Dahi Khalfan Tamim, Dubai’s top police official, earlier this year. Source

I can offer no advice or insightful wisdom to people in debt in Dubai other than it is what it is. It is archaic, desperate, without a modern counterpart. Being in debt in Dubai can be a risk to your freedom and physical well being.

While I am not going to expressly endorse people to physically flee the country for debt problems I think the reality of the situation in Dubai needs to be seen clearly for what it is. To be honest, faced with a financial situation that was falling around me due to circumstances beyond my control, and based upon the current reality on Dubai, if I was there, I’d get the hell out as well while I could.

@GetOutOfDebtGuy

I’m a Filipino in Dubai and Scared I Will Have to Leave the Country to Avoid Jail. – Hope

Steve Rhode — Fri, 24 Jul 2009 22:14:05 +0000

From How to Get Out of Debt

Hope

“Hi Steve,

I’m a filipino currently employed here in Dubai. going for 2 years. I have some personal loans & credit cards here in Dubai. Before, everything is fine because overtime is open in our dept. which makes my earnings more adequate to my expenses & i still can manage all my financial obligations. Then the economic crisis affects our company, our overtime hours has been lessen & almost suspended at all. Now, my basic monthly salary cannot support my monthly obligations paying the banks & sending money back home. I have also tried negotiating with the banks, and their response is that, they can only help who had lost their jobs. Im very afraid that maybe a month or two, i would start defaulting. I also cannot see any hope in our company bringing back the opportunity to have overtime since we are deeply affected by the crisis. Im planning to runaway and go back to my country while i still have a time, to avoid embarrassment if im gonna be jailed.

Is there any chance that im gonna be arrested or jailed in my own country in running away with my debt, with the help of local authorities, particularly in Phillipines? Are the banks & financial institutions here in UAE can manage to sue me in my country?

Thanks, your advise will be a big help.

Hope”

The Answer:

Dear Hope,

The reason we talk about actually going to jail in Dubai for debts is because if you fail to pay your debts in Dubai, you do go to jail until you can pay off the debt and get out of jail. From all the research I have done there does not appear to be any middle ground that would allow you to pay less than the amount due and stay out of trouble with your creditors in the UAE.

I can’t believe in this modern age that a debtor prison still exists, but apparently it does in Dubai. And there are no personal bankruptcy laws on the books so that option is out.

From everything that I have read and learned, if you see that you will imminently fall behind on your bills, your are the citizen of another country, and you do not plan to come back to an gulf GCC country again, then leaving Dubai is a reasonable solution to avoid imprisonment.

I can’t think of any stories from people that were sued back in their home country or the Philippines for old Dubai debt. Of course, i suppose if a UAE bank wanted to spend time and money to deal with you back home, it is possible, but not profitable for the bank.

All of that being said, it would not hurt you to seek the advice of a lawyer in Dubai to confirm everything I’ve said.

Big Hug!

@GetOutOfDebtGuy

How to Get Out of Debt With the Get Out of Debt Guy » dubai

I’m Ready to Settle My Debt in Dubai. I Live in India. – Niki

The Answer:

Other Related Articles to Read

How Can I Settle My Debts in Dubai?

The Answer:

Other Related Articles to Read

Government Debt Settlement Fund to Release People From Jail Over Debts

Other Related Articles to Read

How Can I Settle My Debts With My Banks in Dubai – UAE? – Tanya

Other Related Articles to Read

Can I Get My Dubai Debts Forgiven Now That I’m in India and Divorced? – Sheeba

The Answer:

Other Related Articles to Read

Citizens’ Debt Settlement Fund Pays to Settle Debts of Citizens in UAE

Other Related Articles to Read

I have a Uk company chasing me for Dubai debt. – Sian

Other Related Articles to Read

How can I avoid getting arrested in the airport in UAE because of a cheque placed there?

Other Related Articles to Read

Will I Go to Prison in Dubai for My Father’s Debt? – Noor

Other Related Articles to Read

DUBAI CREDIT CARD DEBT – Joseph

Other Related Articles to Read

How Do I Get My Tenant in Dubai to Pay His Rent if His Cheques Are Bad? – Bwana

Other Related Articles to Read

Personal Loan taken in Dubai, Back to India after Job Loss. – Dev

Other Related Articles to Read

American With UAE Dubai Credit Card Debt is Worried About Interpol. – Lisa

The Answer:

Other Related Articles to Read

I’m a Runaway Housemaid in Dubai. – Lucia

Other Related Articles to Read

Desperate in Dubai Over Car Loan With Friend From Philippines

Other Related Articles to Read

Debt Problems in Dubai UAE Get Better and Worse for Consumers

Other Related Articles to Read

I Left Dubai in Debt, Went to India and Now Live in Australia. – Iram

The Answer:

Other Related Articles to Read

I’m British With UAE Debt But Living in China. – Aaron

The Answer:

Other Related Articles to Read

I Am a Single Mother Living in India and Want to Move to Dubai. – Anna

The Answer:

Other Related Articles to Read

I Have a Loan in Dubai I Can’t Pay. – Helpme

The Answer:

Other Related Articles to Read

Creditors Are Calling Me for My Son’s Money. – Alexis

The Answer:

Other Related Articles to Read

Will I Be Arrested on My Flight to China Through Abu Dhabi? – Robert

The Answer:

Other Related Articles to Read

I Want to Know If I’m Blacklisted and Can’t Get Back In the UAE. – Ahmed

The Answer:

Other Related Articles to Read

I Left Dubai In Debt. I Want to Go Back to Dubai. – Rendeep

The Answer:

Other Related Articles to Read

Dubai Police Blacklisted My Friend Because of My Debt. – Nett

The Answer:

Other Related Articles to Read

I’m in Dubai and Was in Jail For My Debts. Who Can Help Me? – Marnie

The Answer:

Other Related Articles to Read

I Was Scammed By a Friend I Lent Money to Open a Business. – Jen

Other Related Articles to Read

Desperate Ex-Pat in Dubai is About to Become Loan Scam Victim

The Answer:

Other Related Articles to Read

Will I Get Caught at the Dubai Border For My Past Bad Debts? – Aman

The Answer:

Other Related Articles to Read

I am on a Visit Visa in UAE and Have Lots of Debt. What Can I Do? – Rina

The Answer:

Other Related Articles to Read

Will I Be Arrested and Taken Back to Dubai Because of My Debts? – Christopher

The Answer: