Financial Cost of Leaving the UAE - Lesson Learnt!
#1
Forum Regular
Thread Starter
Joined: Jan 2009
Posts: 112
Financial Cost of Leaving the UAE - Lesson Learnt!
Just thought I would share with you my cousin’s recent experience when he left the UAE for good and returned home to the UK. He got stung for costs everywhere he turned, just trying to close things down and get out of the country.
He had to pay 8,000 dirhams to close his phone account because he was canceling his 2 year contract early.
He had a Jeep which he had paid off in full and had been given a certificate of completion of payments. He then sold this Jeep to someone 3 months ago. For some reason he still had to pay the financing company some money, I think about 2,000 dirhams.
He had to pay to close his bank account,
He had a sterling account which he never used and because it was not used ofr over a year, it was deactivated. He then had to pay to re-activate and pay AGAIN to close it.
His employer shafted him because he left his house early – he had to pay a year up front and left it 5 months early so he lost out there.
Finally he had been paying about 1,000 pounds a month into two off shore saving schemes for the last 2 years, one that matures in 10 years and one that matures in 25 years. He tried to cash these in and he did think that of course, he would be penalized for doing so. He did not therefore expect to get his 24,000 pounds back, which is how much he’d paid in, but he thought he would get a good percentage of it back.
What he wasn’t told when he started the two schemes was that you pay the full fees on the agreement UP FRONT before your own money kicks in… so effectively he’s been paying fees only for 2 years and now all he can get out is 900 quid!
Just be careful about how you exit the country and what it will cost you. He’s now thinking he should have just done a runner.
He had to pay 8,000 dirhams to close his phone account because he was canceling his 2 year contract early.
He had a Jeep which he had paid off in full and had been given a certificate of completion of payments. He then sold this Jeep to someone 3 months ago. For some reason he still had to pay the financing company some money, I think about 2,000 dirhams.
He had to pay to close his bank account,
He had a sterling account which he never used and because it was not used ofr over a year, it was deactivated. He then had to pay to re-activate and pay AGAIN to close it.
His employer shafted him because he left his house early – he had to pay a year up front and left it 5 months early so he lost out there.
Finally he had been paying about 1,000 pounds a month into two off shore saving schemes for the last 2 years, one that matures in 10 years and one that matures in 25 years. He tried to cash these in and he did think that of course, he would be penalized for doing so. He did not therefore expect to get his 24,000 pounds back, which is how much he’d paid in, but he thought he would get a good percentage of it back.
What he wasn’t told when he started the two schemes was that you pay the full fees on the agreement UP FRONT before your own money kicks in… so effectively he’s been paying fees only for 2 years and now all he can get out is 900 quid!
Just be careful about how you exit the country and what it will cost you. He’s now thinking he should have just done a runner.
#2
Account Closed
Joined: Oct 2008
Posts: 2,502
Re: Financial Cost of Leaving the UAE - Lesson Learnt!
Your cousin is an idiot.
Why did he close his phone account early? He could have just let it lapse without using it.
'His employer shafted him because he left his house early – he had to pay a year up front and left it 5 months early so he lost out there.' Employer didn't shaft your cousin. Your cousin paid a year upfront through his employer so when he left the firm the employer deducted the remaining cost of the housing loan from the gratuity. Perfectly norm and understandable.
'Finally he had been paying about 1,000 pounds a month into two off shore saving schemes for the last 2 years, one that matures in 10 years and one that matures in 25 years. He tried to cash these in and he did think that of course, he would be penalized for doing so. He did not therefore expect to get his 24,000 pounds back, which is how much he’d paid in, but he thought he would get a good percentage of it back. What he wasn’t told when he started the two schemes was that you pay the full fees on the agreement UP FRONT before your own money kicks in… so effectively he’s been paying fees only for 2 years and now all he can get out is 900 quid!' Bullshit. This doesn't happen. You don't pay 24,000 pounds into offshore saving schemes and all that goes into full fees. Even if so why didn't he just keep the offshore accounts?
Why did he close his phone account early? He could have just let it lapse without using it.
'His employer shafted him because he left his house early – he had to pay a year up front and left it 5 months early so he lost out there.' Employer didn't shaft your cousin. Your cousin paid a year upfront through his employer so when he left the firm the employer deducted the remaining cost of the housing loan from the gratuity. Perfectly norm and understandable.
'Finally he had been paying about 1,000 pounds a month into two off shore saving schemes for the last 2 years, one that matures in 10 years and one that matures in 25 years. He tried to cash these in and he did think that of course, he would be penalized for doing so. He did not therefore expect to get his 24,000 pounds back, which is how much he’d paid in, but he thought he would get a good percentage of it back. What he wasn’t told when he started the two schemes was that you pay the full fees on the agreement UP FRONT before your own money kicks in… so effectively he’s been paying fees only for 2 years and now all he can get out is 900 quid!' Bullshit. This doesn't happen. You don't pay 24,000 pounds into offshore saving schemes and all that goes into full fees. Even if so why didn't he just keep the offshore accounts?
Just thought I would share with you my cousin’s recent experience when he left the UAE for good and returned home to the UK. He got stung for costs everywhere he turned, just trying to close things down and get out of the country.
He had to pay 8,000 dirhams to close his phone account because he was canceling his 2 year contract early.
He had a Jeep which he had paid off in full and had been given a certificate of completion of payments. He then sold this Jeep to someone 3 months ago. For some reason he still had to pay the financing company some money, I think about 2,000 dirhams.
He had to pay to close his bank account,
He had a sterling account which he never used and because it was not used ofr over a year, it was deactivated. He then had to pay to re-activate and pay AGAIN to close it.
His employer shafted him because he left his house early – he had to pay a year up front and left it 5 months early so he lost out there.
Finally he had been paying about 1,000 pounds a month into two off shore saving schemes for the last 2 years, one that matures in 10 years and one that matures in 25 years. He tried to cash these in and he did think that of course, he would be penalized for doing so. He did not therefore expect to get his 24,000 pounds back, which is how much he’d paid in, but he thought he would get a good percentage of it back.
What he wasn’t told when he started the two schemes was that you pay the full fees on the agreement UP FRONT before your own money kicks in… so effectively he’s been paying fees only for 2 years and now all he can get out is 900 quid!
Just be careful about how you exit the country and what it will cost you. He’s now thinking he should have just done a runner.
He had to pay 8,000 dirhams to close his phone account because he was canceling his 2 year contract early.
He had a Jeep which he had paid off in full and had been given a certificate of completion of payments. He then sold this Jeep to someone 3 months ago. For some reason he still had to pay the financing company some money, I think about 2,000 dirhams.
He had to pay to close his bank account,
He had a sterling account which he never used and because it was not used ofr over a year, it was deactivated. He then had to pay to re-activate and pay AGAIN to close it.
His employer shafted him because he left his house early – he had to pay a year up front and left it 5 months early so he lost out there.
Finally he had been paying about 1,000 pounds a month into two off shore saving schemes for the last 2 years, one that matures in 10 years and one that matures in 25 years. He tried to cash these in and he did think that of course, he would be penalized for doing so. He did not therefore expect to get his 24,000 pounds back, which is how much he’d paid in, but he thought he would get a good percentage of it back.
What he wasn’t told when he started the two schemes was that you pay the full fees on the agreement UP FRONT before your own money kicks in… so effectively he’s been paying fees only for 2 years and now all he can get out is 900 quid!
Just be careful about how you exit the country and what it will cost you. He’s now thinking he should have just done a runner.
#3
Forum Regular
Thread Starter
Joined: Jan 2009
Posts: 112
Re: Financial Cost of Leaving the UAE - Lesson Learnt!
I kind of agree with you, he should have just let the phone go, yes, he did leave the house early, so it sucks but it's fair. I do feel for him over the whole thing though.
As for the fees thing on the investment - this is exactly what has happened. He was never told this when he signed up but he's been told it now. It's in the small print. I don't know which company he did it with but he can not get anything back. I advised him to just keep paying in, you don't take out a 10 year plan if you ever think you are going to pull out early. He only tried to do it because he was going to buy a flat back home.
As for the fees thing on the investment - this is exactly what has happened. He was never told this when he signed up but he's been told it now. It's in the small print. I don't know which company he did it with but he can not get anything back. I advised him to just keep paying in, you don't take out a 10 year plan if you ever think you are going to pull out early. He only tried to do it because he was going to buy a flat back home.
#4
Re: Financial Cost of Leaving the UAE - Lesson Learnt!
And how many times have I said that no one should ever open 25 year offshore savings accounts?? That's what happens when you deal with certain companies. Some unethical salesman made a nice income out of that miss selling.
Anyone plannig to return to the UK (or indeed go anywhere) should plan ahead as much as possible to reduce costs, avoid charges and do some sensible tax planning.
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Anyone plannig to return to the UK (or indeed go anywhere) should plan ahead as much as possible to reduce costs, avoid charges and do some sensible tax planning.
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#5
Re: Financial Cost of Leaving the UAE - Lesson Learnt!
Lessons learnt - stick to the basics, always read things before signing, get second opinions and don't bother to close local accounts because they deactivate on their own. As long as he doesn't owe money he can just walk away.
N.
#6
Lost in BE Cyberspace
Joined: Jul 2007
Posts: 13,553
Re: Financial Cost of Leaving the UAE - Lesson Learnt!
I kind of agree with you, he should have just let the phone go, yes, he did leave the house early, so it sucks but it's fair. I do feel for him over the whole thing though.
As for the fees thing on the investment - this is exactly what has happened. He was never told this when he signed up but he's been told it now. It's in the small print. I don't know which company he did it with but he can not get anything back. I advised him to just keep paying in, you don't take out a 10 year plan if you ever think you are going to pull out early. He only tried to do it because he was going to buy a flat back home.
As for the fees thing on the investment - this is exactly what has happened. He was never told this when he signed up but he's been told it now. It's in the small print. I don't know which company he did it with but he can not get anything back. I advised him to just keep paying in, you don't take out a 10 year plan if you ever think you are going to pull out early. He only tried to do it because he was going to buy a flat back home.
#9
Re: Financial Cost of Leaving the UAE - Lesson Learnt!
why close the savings schemes? why not just continue making payments into them? If he could not continue to afford the 1000, he could reduce the payments (as he would be past the initial 18 months)
Rent payment - this is normal practice here, and so was not shafted at all.
Why close bank? why not empty the account of funds and let the bank freeze the accounts? Why did he have to pay to unfreeze an account? I have done this with my GBP just by going to branch and filling in a form.
What was the 2k to the finance co for? Once you get certificate of completion there is no further dealings with them. The certificate allows you to transfer the car at RTA, so no need to involve the finance co.
What kind of phone deal was he on??? As has been said, leave it open.
Some people do stupid things and then moan about them making out that it was all someone elses fault.
Rent payment - this is normal practice here, and so was not shafted at all.
Why close bank? why not empty the account of funds and let the bank freeze the accounts? Why did he have to pay to unfreeze an account? I have done this with my GBP just by going to branch and filling in a form.
What was the 2k to the finance co for? Once you get certificate of completion there is no further dealings with them. The certificate allows you to transfer the car at RTA, so no need to involve the finance co.
What kind of phone deal was he on??? As has been said, leave it open.
Some people do stupid things and then moan about them making out that it was all someone elses fault.
#10
Re: Financial Cost of Leaving the UAE - Lesson Learnt!
Not all plans have an 18 month initial period. That's just the ones mis-sold by that company. And the 18 month priod relates as much to the timeframe during which the salesperson has their commssion reclaimed as anything else. And there could be tax issues on continuing the plans whilst in the UK, as well as the fact that they are far from the best option for UK residents.
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#11
Forum Regular
Joined: Sep 2009
Posts: 272
Re: Financial Cost of Leaving the UAE - Lesson Learnt!
Well we have just left Abu Dhabi after 12 years and the only thing we had to pay for was the re-painting of two rooms in the place we were renting as the LL wanted them white again.
We switched over to pay and go phones a month before we left.
Transferred ownership on the car 2 weeks before we left.
got an estimate for the electricity and water from lastyears bill and they accepted the same amount as payment in full.
The week before we were due to leave ADNOC paid for us 4 days fully inclusive in the Hilton.
So it's not always bad, it just pays to plan ahead.
Although we got my husbands end of service money, in the form of a bankers draught from NBAD and we have just deposited it into Natwest and were told we would lose around nine grand in fee's and exchange rate..so we ended up getting shafted anyway.
We switched over to pay and go phones a month before we left.
Transferred ownership on the car 2 weeks before we left.
got an estimate for the electricity and water from lastyears bill and they accepted the same amount as payment in full.
The week before we were due to leave ADNOC paid for us 4 days fully inclusive in the Hilton.
So it's not always bad, it just pays to plan ahead.
Although we got my husbands end of service money, in the form of a bankers draught from NBAD and we have just deposited it into Natwest and were told we would lose around nine grand in fee's and exchange rate..so we ended up getting shafted anyway.
#12
Lost in BE Cyberspace
Joined: Jul 2007
Posts: 13,553
Re: Financial Cost of Leaving the UAE - Lesson Learnt!
Well we have just left Abu Dhabi after 12 years and the only thing we had to pay for was the re-painting of two rooms in the place we were renting as the LL wanted them white again.
We switched over to pay and go phones a month before we left.
Transferred ownership on the car 2 weeks before we left.
got an estimate for the electricity and water from lastyears bill and they accepted the same amount as payment in full.
The week before we were due to leave ADNOC paid for us 4 days fully inclusive in the Hilton.
So it's not always bad, it just pays to plan ahead.
Although we got my husbands end of service money, in the form of a bankers draught from NBAD and we have just deposited it into Natwest and were told we would lose around nine grand in fee's and exchange rate..so we ended up getting shafted anyway.
We switched over to pay and go phones a month before we left.
Transferred ownership on the car 2 weeks before we left.
got an estimate for the electricity and water from lastyears bill and they accepted the same amount as payment in full.
The week before we were due to leave ADNOC paid for us 4 days fully inclusive in the Hilton.
So it's not always bad, it just pays to plan ahead.
Although we got my husbands end of service money, in the form of a bankers draught from NBAD and we have just deposited it into Natwest and were told we would lose around nine grand in fee's and exchange rate..so we ended up getting shafted anyway.
#13
Re: Financial Cost of Leaving the UAE - Lesson Learnt!
Why won't people seek professional advice on financial matters?
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#14
Lost in BE Cyberspace
Joined: May 2008
Posts: 5,125
Re: Financial Cost of Leaving the UAE - Lesson Learnt!
i suppose they didnt think of that one, perhaps they had already closed their account here.....!
#15
Forum Regular
Joined: Sep 2009
Posts: 272
Re: Financial Cost of Leaving the UAE - Lesson Learnt!
Problem was..we had Air tickets booked, ADNOC had given us FOUR days only in the hotel and we had to be out of the UAE on the 2nd of July( ADNOC PRO waiting to cancel our visa).
We were actually sat in The Marina Mall branch of NBAD at 6.30pm awaiting 2 signatures from the branch Manager (who should have actually been back at work at 3.00pm but didnt bother to turn up).
It was for a subtantial amount, and nerves were gettingn the better of us. we literally had 4 hours to get the bankers draught before the plane was taking off.
We did make mistakes, and should of taken advice given, but after days of sitting at empty desks at ADNOC HQ awaiting signatures from around 8 locals who werent even there, we just wanted out of the place.