Debt in UAE

Old Oct 7th 2018, 9:22 am
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Default 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.
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Old Oct 7th 2018, 9:25 am
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Default Re: Debt in UAE

Originally Posted by IKnowNothing View Post
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.
So... someone could borrow 100k from the bank, do a runner, and as long as he pays 30k back within three months of doing the runner (when is the runner officially a runner?) then the bank will accept it as payment in full?
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Old Oct 7th 2018, 10:30 am
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Default Re: Debt in UAE

Originally Posted by DXBtoDOH View Post
So... someone could borrow 100k from the bank, do a runner, and as long as he pays 30k back within three months of doing the runner (when is the runner officially a runner?) then the bank will accept it as payment in full?
Yep.
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Old Oct 7th 2018, 11:14 am
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Default Re: Debt in UAE

Originally Posted by IKnowNothing View Post
Yep.
Ah.
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Old Oct 7th 2018, 11:41 am
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Default 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.....
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Old Oct 7th 2018, 12:19 pm
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Default Re: Debt in UAE

Originally Posted by IKnowNothing View Post
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.....
Something has to give in exchange. My bet is that they're tightening up lending substantially.
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Old Oct 7th 2018, 12:48 pm
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Default Re: Debt in UAE

American friends now have to jump through a few hoops, and the amounts offered by banks have decreased.
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Old Oct 7th 2018, 12:57 pm
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Default Re: Debt in UAE

Originally Posted by IKnowNothing View Post
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.
can you point us in the direction of the circular?
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Old Oct 7th 2018, 1:34 pm
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Default Re: Debt in UAE

Originally Posted by Millhouse View Post


can you point us in the direction of the circular?
You really think it would be published?

It's accurate and true. Seriously.
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Old Oct 7th 2018, 2:00 pm
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Default Re: Debt in UAE

Originally Posted by IKnowNothing View Post
You really think it would be published?

It's accurate and true. Seriously.
Ok mate. I’ll refer them to this post when I’m in the clink.
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Old Oct 7th 2018, 2:54 pm
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Default Re: Debt in UAE

Originally Posted by Millhouse View Post


Ok mate. I’ll refer them to this post when I’m in the clink.
You always struck me as someone who pays their debts. I'm obviously wrong.
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Old Oct 7th 2018, 3:31 pm
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Default Re: Debt in UAE

Originally Posted by IKnowNothing View Post
You always struck me as someone who pays their debts. I'm obviously wrong.
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.

Last edited by Millhouse; Oct 7th 2018 at 3:33 pm.
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Old Oct 7th 2018, 6:56 pm
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Default Re: Debt in UAE

Originally Posted by Millhouse View Post


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.
There is a cost in getting money back, a bank would rather I pay 30% now, than 100% in 10 years (say) hence. Cost of money, cash flow, inflation and all that.

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.
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Old Oct 8th 2018, 8:02 am
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Default Re: Debt in UAE

Originally Posted by DXBtoDOH View Post
Something has to give in exchange. My bet is that they're tightening up lending substantially.
I got declined for a second local savings account here.
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.

Originally Posted by IKnowNothing View Post
I wasn't aware that the 2019 law for everyone was public knowledge.
It is if you post it on the internet....
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