Can a Collection Company Chase Me in Dubai for Foreign Debt?

“Dear Jon,

Lived in Australia in 2001 and left the country in 2010 due to some situations. To cut the story short, I owe my credit card around $25000 when I left oz. After a while a debt agency started calling me to pay the said amount in behalf of the bank that I owe. However as much as I want to pay I just don’t have the capacity to do so. I only earn minimum amount and paying rent food is hard enough to meet ends. My question is?

1. Can that Australian debt agency transfer the money owing here in Dubai agency or debt collectors?

2. What Will happen if I cant pay the money?

3. Would the Dubai government accept the debt so they can take action from here?

Thank you very much

Daisy”

Daisy,

I understand your concerns, and it can be unnerving having an unpaid debt, especially in another country, and then be contacted and have demands for payment.

A couple of questions:

Has the Australian debt agency had regular contact with you since you left Oz?

If not, when did they first contact you?

Do you know if a court judgement has been issued against you in Oz?

Debts do get sold onto debt collection agencies regularly, and if the debt were to be sold to an agency there in Dubai, they could attempt to collect the debt there but would have to initiate a UAE legal action to bring you into court. I cannot say as to if this will occur or not.

To my knowledge the Oz collection firm has no authority in Dubai, however, if you are to believe this gentleman, if a judgement was obtained in Australia, they do have authority.

But here is a great article to read on this issue, click here.

If you read further down you will note, it would need to go through the courts in Dubai. They may not feel it is worth it do this, but again I cannot say for sure.

If you cannot pay the account, you cannot pay the account. If they were to offer a settlement, do you have anyone who may be in a position to help you?

Why I asked about how long have the collection firm been in contact with you, and also if you look at how old the debt is, Australia does have a statute of limitations on debts. You would need to speak with someone more informed on this in Australia.

I hope in some way this helps, let me know.

Regards,

Jon