International Debt Recovery: Myth vs Reality

Question:

Jon,

Lived and worked in Qatar for approx three years had a car loan and credit card with Commercial Bank Qatar. Guaranteed by my sponsor. When I left my sponsor signed my leaving papers. I did stay in contact with CBQ when I moved to Spain and received one or two months’ credit card statements then nothing. A couple of times over the next two years various people called but they did not resolve the issue with the lack of statements with payment slips. I have not lived in Qatar for 19 years and not heard from CBQ since the initial contacts some 19 years ago. I did not hide from CBQ as they had my telephone number and PO Box Address in Spain. I have resided back here in the UK for over 10 years

International Debt Recovery has sent a letter to my address. Am I protected by the statute of limitations as per Qatar?

Under Qatari law, the application of limitation periods is usually a substantive law issue and therefore governed by the law applicable to a particular contract or interaction between the parties.

Advice should be sought on a case-by-case basis on the applicable limitation period since its expiry can critically affect a party’s ability to bring a claim. Where Qatari law is the applicable law in respect of a limitation period, the general position is set out below.

Qatari law also prescribes a range of different limitation periods depending on the specific type of claim in issue. In particular, the position in respect of contractual claims is generally as follows:

• claims which are considered to arise out of a commercial arrangement / activity will have a limitation period of ten years from the breach occurring; and

• claims which are not considered to arise out of a commercial arrangement / activity will have a limitation period of 15 years from the breach occurring.

Phillip

Answer:

Philip,

You certainly have done some research and your homework here.

Unfortunately, your questions and concerns are more of a legal issue, and a legal one involving another country and their statutes of limitations on accounts.

Have you spoken to International Debt Recovery to explain your position and the amount of time that has passed with the account? They may be unaware the account is so old. Then again, they may have purchased it for pennies, and hope to try to force you into paying.

A side note that may help:

A few weeks ago someone I know here in the UK was contacted by a debt collection agency regarding a debt that was over 10 years old, in fact nearly 12 years old. The debt collection agency purchased the account in a batch of accounts they bought, and were now trying to “bully” for lack of a better term, this person into payment.

When I spoke to the debt collector on my friend’s behalf, I informed the agency that the account is now Statute Barred, as it has been well over six (6) years since any contact, and legally, my friend does not have to pay the account.

After a few words, the debt collector tried to emotionally bully my friend, playing on a sense of doing what is right. My friend did not pay the account, and in pushing the collector they said that yes it is true, my friend is not legally responsible for payment, they just hope people will pay. And of course, by making one payment, the debtor re-acknowledges the debt.

I am not saying your situation is the same, but something to keep in mind when you speak to the collection agency.

Let us know how you get on.

Regards,

Jon

Related: Have international debt concerns? Read about what happens at borders with past debts.

Jon Emge

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.

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