Debt in UAE
Oct 7th 2018, 9:22 am
#1
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Debt in UAE
Thought it might be a good idea to give everyone a heads up on the current and forthcoming laws on debt in the UAE:-
If you've already left, banks etc. can only charge interest and late payment charges for 120 days after the last payment, so if you left in 2010 and haven't paid DON't pay a small payment as all the debt can then be chased (including late payment charges). The debt is NON ENFORCEABLE in the UK, but the likes of CWD will insist it is and hassle/embarrass you.
If you're thinking of running, once you're out banks will accept 25-30% of the principal debt as full and final within the first 3 months, this rises to around 66% after 6 months and 100% after a year.
If you're still here and bounce a cheque after being made redundant (for example), bills ar upto 50k, it's a 2,000 fine, under 100,000 it's a 5,000 fine, 100-250k it's a 10,000 fina and above 250k it's up to the judge.
Bouncing a cheque will be a civil case (not criminal) come January.
Stay safe.
If you've already left, banks etc. can only charge interest and late payment charges for 120 days after the last payment, so if you left in 2010 and haven't paid DON't pay a small payment as all the debt can then be chased (including late payment charges). The debt is NON ENFORCEABLE in the UK, but the likes of CWD will insist it is and hassle/embarrass you.
If you're thinking of running, once you're out banks will accept 25-30% of the principal debt as full and final within the first 3 months, this rises to around 66% after 6 months and 100% after a year.
If you're still here and bounce a cheque after being made redundant (for example), bills ar upto 50k, it's a 2,000 fine, under 100,000 it's a 5,000 fine, 100-250k it's a 10,000 fina and above 250k it's up to the judge.
Bouncing a cheque will be a civil case (not criminal) come January.
Stay safe.
Oct 7th 2018, 9:25 am
#2
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Joined: Jan 2015
Posts: 3,520
Re: Debt in UAE
Thought it might be a good idea to give everyone a heads up on the current and forthcoming laws on debt in the UAE:-
If you've already left, banks etc. can only charge interest and late payment charges for 120 days after the last payment, so if you left in 2010 and haven't paid DON't pay a small payment as all the debt can then be chased (including late payment charges). The debt is NON ENFORCEABLE in the UK, but the likes of CWD will insist it is and hassle/embarrass you.
If you're thinking of running, once you're out banks will accept 25-30% of the principal debt as full and final within the first 3 months, this rises to around 66% after 6 months and 100% after a year.
If you're still here and bounce a cheque after being made redundant (for example), bills ar upto 50k, it's a 2,000 fine, under 100,000 it's a 5,000 fine, 100-250k it's a 10,000 fina and above 250k it's up to the judge.
Bouncing a cheque will be a civil case (not criminal) come January.
Stay safe.
If you've already left, banks etc. can only charge interest and late payment charges for 120 days after the last payment, so if you left in 2010 and haven't paid DON't pay a small payment as all the debt can then be chased (including late payment charges). The debt is NON ENFORCEABLE in the UK, but the likes of CWD will insist it is and hassle/embarrass you.
If you're thinking of running, once you're out banks will accept 25-30% of the principal debt as full and final within the first 3 months, this rises to around 66% after 6 months and 100% after a year.
If you're still here and bounce a cheque after being made redundant (for example), bills ar upto 50k, it's a 2,000 fine, under 100,000 it's a 5,000 fine, 100-250k it's a 10,000 fina and above 250k it's up to the judge.
Bouncing a cheque will be a civil case (not criminal) come January.
Stay safe.
Oct 7th 2018, 10:30 am
#3
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Oct 7th 2018, 11:41 am
#5
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Re: Debt in UAE
Guidelines from the Central Bank. The local bank know they have little chance of getting it back so would rather get something back sooner rather than later. You also get a clearance letter from them saying there's no police case or civil case against you by the bank and you don't owe them a fil.
Sometimes I do know something.....
Sometimes I do know something.....
Oct 7th 2018, 12:19 pm
#6
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Posts: 3,520
Re: Debt in UAE
Guidelines from the Central Bank. The local bank know they have little chance of getting it back so would rather get something back sooner rather than later. You also get a clearance letter from them saying there's no police case or civil case against you by the bank and you don't owe them a fil.
Sometimes I do know something.....
Sometimes I do know something.....
Oct 7th 2018, 12:48 pm
#7
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Joined: Sep 2012
Posts: 483
Re: Debt in UAE
American friends now have to jump through a few hoops, and the amounts offered by banks have decreased.
Oct 7th 2018, 12:57 pm
#8
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Joined: Aug 2009
Location: Disneyland, Dubai
Posts: 15,887
Re: Debt in UAE
Thought it might be a good idea to give everyone a heads up on the current and forthcoming laws on debt in the UAE:-
If you've already left, banks etc. can only charge interest and late payment charges for 120 days after the last payment, so if you left in 2010 and haven't paid DON't pay a small payment as all the debt can then be chased (including late payment charges). The debt is NON ENFORCEABLE in the UK, but the likes of CWD will insist it is and hassle/embarrass you.
If you're thinking of running, once you're out banks will accept 25-30% of the principal debt as full and final within the first 3 months, this rises to around 66% after 6 months and 100% after a year.
If you're still here and bounce a cheque after being made redundant (for example), bills ar upto 50k, it's a 2,000 fine, under 100,000 it's a 5,000 fine, 100-250k it's a 10,000 fina and above 250k it's up to the judge.
Bouncing a cheque will be a civil case (not criminal) come January.
Stay safe.
If you've already left, banks etc. can only charge interest and late payment charges for 120 days after the last payment, so if you left in 2010 and haven't paid DON't pay a small payment as all the debt can then be chased (including late payment charges). The debt is NON ENFORCEABLE in the UK, but the likes of CWD will insist it is and hassle/embarrass you.
If you're thinking of running, once you're out banks will accept 25-30% of the principal debt as full and final within the first 3 months, this rises to around 66% after 6 months and 100% after a year.
If you're still here and bounce a cheque after being made redundant (for example), bills ar upto 50k, it's a 2,000 fine, under 100,000 it's a 5,000 fine, 100-250k it's a 10,000 fina and above 250k it's up to the judge.
Bouncing a cheque will be a civil case (not criminal) come January.
Stay safe.
Oct 7th 2018, 1:34 pm
#9
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Oct 7th 2018, 2:00 pm
#10
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Oct 7th 2018, 2:54 pm
#11
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Oct 7th 2018, 3:31 pm
#12
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Re: Debt in UAE
The bit I don’t get is why would a bank accept a 30pct recovery on short term defaults but only 100pct on longer term ones. It makes no sense and is the opposite of what actually happens. So either it’s a typo or the whole thing is a bit questionable. — and the bounced cheque thing was done last year.
So without a circular it sounds a bit like the expat rumour mill.
Last edited by Millhouse; Oct 7th 2018 at 3:33 pm.
Oct 7th 2018, 6:56 pm
#13
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Re: Debt in UAE
i used to pay debts. Now I don’t have any to pay.
The bit I don’t get is why would a bank accept a 30pct recovery on short term defaults but only 100pct on longer term ones. It makes no sense and is the opposite of what actually happens. So either it’s a typo or the whole thing is a bit questionable. — and the bounced cheque thing was done last year.
So without a circular it sounds a bit like the expat rumour mill.
Oh and I'm with you. No debt. Best way to be.
I wasn't aware that the 2019 law for everyone was public knowledge. Ah well, maybe I really don't know anything.
Oct 8th 2018, 8:02 am
#14
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Joined: Feb 2011
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Re: Debt in UAE
I bank with HSBC, have a local saver for rent etc to be put aside. Wanted another for something else and to save pointless admin.
Got rejected. It's a ****ing online saver with virtually 0 interest and commitment yet they sent me a text the day I got rejected offering me a loan of 404,000 which I was 'pre-approved' for yet had no interest in, hadn't requested any info about or anything.
MENTAL.
It is if you post it on the internet....
