How Can I Restructure My Debt in the UAE. My Bank is Threatening to Call the Police.

“Dear Jon,

I had an issue with my bank in November 2011 to whom im transfering my salary as i have a personal loan when they accused me that i have an unpaid credit card from 2009. i had a card in 2009 and repaid it all, but lost the clearance letter. so the bank took my salary for 2 consecutive months. at the same time i applied to transfer my account to another bank where they had to buy out my personal loan.before i do the buy out the new bank had already submitted managers cheque and the old bank accepted it on a liability letter issue by them that doesnt include the claimed credit card.

after accepting the managers cheque they refused to transfer my salary and took my salary for 2 consectuive months to cover the card they claim i failed to pay. i went to the central bank, and they informed that i can apply for a criminal case against the bank which i will definately loose or file a civil case and that wil take years. i had no money at that time and had to pay my bills, so i took new credit cards. when my salary was transfered to the new bank, i was shocked that my salary was also taken in full and when i contacted them they said that i have have not paid for the past 3 months and they want to cover late payments. i had already informed them about my situation and the case that happened but still they took my salary for 2 consecutive months. again i applied for new credit cards to pay my bills.

my perosnal loan payment is half my salary and have around 6 credit cards and auto finance, besides my allowance and house rent, im over due every month with 6’000 dhs above my salary.

i cannot apply for another personal loan as central bank rules limit liabilities to half the salary, i went back to my bank to restructure my loan they refused, i tried to make a buy out to another bank as i have paid till now a year or more of my personal loan, but was surprised that they will charge me the full interest if i transfer and that would be again another downfall for me.

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my question is how to settle my 6 credit cards and auto finance as i am due 2 payments for each debt?

i need a solution as i reached a dead end, getting threatening calls from banks to file a police case.


Writing Q&A, Questions and Answers on a blackboard.


Just to clarify matters, what country are you residing in? I am going to assume it is in a country where warrants can be issued for unpaid debts as you mentioned the banks want to file a police case, but laws and legal actions for debts are different in different countries.

It sounds to me you have done what you can, and it also sounds like it may be more of a legal matter, in which you need legal advice and help.

It appears you need to be able to prove you paid the old credit card off, if you cannot prove this, and the bank states you still owe it, then it may be a matter for the courts to decide.

Unfortunately if things go from bad to worse, again depending on where you are living, if a police warrant is issued, and you cannot pay the debt or have family or friends help you out, leaving the country is an option. And possibly a better one than going to jail.

There is a new debt settlement programme for UAE nationals you may want to look into as well. You can contact your bank about it.

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.

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