One of the most common financial challenges faced by individuals in the UAE is credit card debt. In this article, we will delve into the world of credit card debt in the UAE, examining the causes of this phenomenon, the impact it can have on individuals and their financial well-being, as well as the strategies and resources available to help manage and overcome credit card debt.
Here are some frequently asked questions about Credit Card Debts in the UAE.
Is it possible to renew your UAE visa while having an ongoing credit card case in the UAE?
Yes, it is possible to renew your UAE visa while simultaneously dealing with an ongoing credit card case in the UAE. The process of renewing your visa can be quite straightforward, as long as you follow the appropriate steps and procedures.
If you find yourself in this situation, you will need to request a renewal of your UAE visa through the Public Prosecution office. This is because your ongoing court case may have an impact on your ability to renew your visa, and the Public Prosecution office is responsible for overseeing legal proceedings in the country..
1. Visit the UAE Ministry of Justice website at https://www.moj.gov.ae/en/services/services-categories/general/application-for-passport-and-residence-renewal.aspx
2. Click on Start Service. You will be redirected to https://www.pp.gov.ae/
3. Click on Guarantees and Security Services and then click on Request for renewals of passports or residence
4. Login with your PP.GOV.AE account or initiate a new registration
5. Enter your details and make an official request in Arabic to renew your residence visa
6. Await the prosecution’s decision in three working days. If approved, a waiver approval request will be sent to your email in three working days.
7. Attach a copy of this letter with your visa renewal application and submit it to the immigration office for further processing of your visa.
It is important to note that the timeline for renewing your UAE visa while dealing with an ongoing court case may vary depending on the specific circumstances of your case. As such, it is recommended that you consult with a legal expert or immigration specialist to ensure that you are following the appropriate steps and procedures.
Overall, while dealing with an ongoing credit card case in the UAE can be a challenging experience, it is possible to renew your UAE visa while the case is ongoing. By following the steps outlined by the Public Prosecution office and working with a qualified professional, you can ensure that your visa renewal process goes as smoothly as possible.
Can I exit the UAE without clearing my credit card dues?
You are permitted to leave the United Arab Emirates (UAE) as long as you have no legal cases pending against you within the country. Additionally, if you are consistently making timely monthly payments towards your credit card instalments or bills, the bank will not take any adverse actions against you.
However, if you happen to discontinue making payments towards your credit card, the bank will return your security cheque (if you had given one as collateral) and take legal action against you. The bank will file a police case against you which could lead to a travel ban and an arrest warrant in the UAE. It is crucial to note that if this case is filed before you leave the UAE, it may prevent you from traveling to other countries, such as Saudi Arabia, to pursue job opportunities.
To ensure a smooth departure from the UAE, it is prudent to conduct a police inspection to verify that there are no legal issues pending against you before you exit the country. By doing so, you can avoid any unwanted issues at the airport and ensure your departure is hassle-free.
What is the process for negotiating outstanding credit card balances with local banks in the UAE?
If you’re struggling to pay off your credit card debt in the UAE, negotiating with your local bank is a good option to consider. It may seem daunting, but with some preparation and persistence, you can potentially lower your outstanding balance and make your payments more manageable. Here are some tips to help you negotiate your credit card debt with local banks in the UAE:
Know Your Debt and Financial Situation
Before you start negotiating with your bank, it’s important to have a clear understanding of your debt and financial situation. Review your credit card statements and calculate the total amount of outstanding debt, including any interest and fees. Then, take a look at your income and expenses to determine how much you can realistically afford to pay each month. This information will be crucial when it comes to negotiating with your bank, as it will help you make informed decisions and present your case in a clear and organized manner.
Contact Your Bank and Discuss Options
Once you have a clear picture of your debt and finances, contact your bank and discuss your options. Be honest about your financial situation and explain that you’re having difficulty paying off your credit card debt. Ask if they can offer any repayment plans or debt settlement options. Some banks may be willing to reduce your interest rate or waive late fees if you agree to make regular payments. Others may offer to settle your debt for a lower amount if you can pay a lump sum upfront.
Be Persistent and Negotiate
If your bank isn’t willing to offer a repayment plan or settlement option that works for you, don’t give up. Be persistent and keep negotiating. You can ask to speak with a supervisor or a higher-up in the bank’s customer service department. You can also try contacting the bank’s collection department and explain your situation. The key is to be polite but firm in your negotiations and to keep pushing until you get a solution that works for you.
Seek Help from a Debt Counselor
If you’re having trouble negotiating with your bank or if you’re unsure how to proceed, seek help from Wirestork’s expert debt counselors. Our debt counselors can help you assess your financial situation, develop a budget, and negotiate with your bank on your behalf. They can also offer advice on debt management and credit counseling.
Consider Debt Consolidation or Balance Transfer
If negotiating with your bank doesn’t work or if you’re looking for a more long-term solution, consider debt consolidation or a balance transfer. Debt consolidation involves combining all your debts into one loan with a lower interest rate and a longer repayment term. This can make your monthly payments more manageable and reduce the amount of interest you pay over time. A balance transfer involves transferring your credit card debt to a new card with a lower interest rate or a zero-percent introductory rate. This can help you save on interest charges and pay off your debt faster.
In conclusion, negotiating with your local bank in the UAE to lower your credit card outstanding balance can be a challenging task, but it’s not impossible. Be prepared, persistent, and polite in your negotiations. Seek help from a debt counselor if needed, and consider debt consolidation or a balance transfer if negotiating with your bank doesn’t work. With some effort and determination, you can reduce your credit card debt and get on the path to financial stability.
How can i settle my UAE credit card debt after leaving the country?
If you find yourself in a situation where you are forced to leave the UAE and move back to your home country, it is understandable to be concerned about the outstanding loans that you have in the UAE. However, it is important to note that having outstanding loans does not necessarily mean that you cannot repatriate.
Borrowers are not legally obligated to stay in the country until their loans are fully paid off. As long as there are no travel bans or police cases against them, borrowers are permitted to leave the country and continue making loan repayments while they are outside of the UAE.
However, it is crucial to be aware of the potential consequences of defaulting on your loans after leaving the country. Defaulting on loans while outside of the UAE can be a more serious and stressful affair compared to those who default while still in the country. This can result in a legal case being lodged against you, which can have severe implications for your credit report and financial stability in the future.
Banks in the UAE prefer to have clean balance sheets and want their customers to have a healthy credit report. Therefore, it is unlikely that banks will refuse settlements as long as the debtor has a clean record. If you are struggling with repayments of personal loans, education loans, or any other type of debt, there are a list of factors that banks consider when settling bad debts in the UAE. These include the borrower’s financial situation, their willingness to repay, and their history of payments.
In summary, while having outstanding loans in the UAE can be a concern when repatriating to your home country, it is important to understand that you have options and are not legally obligated to stay in the UAE until your loans are fully paid off. However, it is essential to be aware of the potential consequences of defaulting on your loans after leaving the country and to work with your bank to find a suitable repayment plan.
Can a company file a lawsuit against a bank for issuing a credit card based on a forged salary certificate?
Yes, a company can sue a bank if the bank issued a credit card based on a forged salary certificate. If the bank issued the credit card to an individual based on false information or documents, it could be considered as fraudulent behavior on the part of the bank. As a result, the company can sue the bank for damages caused due to such actions.
Under the UAE penal code, forgery is a serious offense that can lead to severe punishment, including imprisonment for a period of ten years and the imposition of fines. However, despite the existing stringent laws, there have been cases of individuals using forged documents to deceive others.
To curb this problem, the Federal National Council (FNC) of the UAE approved a draft law in February 2021, aimed at imposing stricter penalties on the use of fake documents. The proposed law seeks to enhance the existing laws and regulations by introducing harsher punishments for those who use or possess fake documents with the intention to deceive.
In such a scenario, the company may have suffered a financial loss if the individual who was issued the credit card with the forged salary certificate was involved in any transactions with the company. The company can then take legal action against the bank for issuing the credit card based on fraudulent information, which caused financial harm to the company.
What are the consequences of missing credit card payments in the UAE?
When it comes to credit card payments, it’s essential to be responsible and pay on time. In the UAE, missing credit card payments can have severe consequences. Not only will it negatively impact your credit score, but it can also result in additional fees and penalties.
One of the most immediate consequences of missing credit card payments is that the bank or financial institution will charge a late payment fee. This fee can vary depending on the credit card provider and the terms and conditions of your agreement. The longer you delay the payment, the more the charges will accumulate, and the higher the fee will be.
In addition to late payment fees, missing credit card payments can also result in additional interest charges. These charges are applied to the unpaid balance, making it even more challenging to pay off the debt. With compounding interest rates, the longer you wait to pay off the balance, the more money you will end up paying in the long run.
Moreover, missed credit card payments can negatively impact your credit score. A credit score is a reflection of your creditworthiness and is used by lenders and financial institutions to evaluate your creditworthiness. Late or missed payments can lower your credit score, making it difficult to obtain credit in the future.
Lastly, missing credit card payments can lead to legal action. In extreme cases, the bank or financial institution may take legal action to recover the outstanding debt. This can result in a Civil case progressing to a court order and may impact your ability to travel or obtain credit in the future.
How is defaulting on a credit card punished by the courts in UAE?
Defaulting on a credit card in UAE can have serious consequences. If you default on a credit card, the bank or financial institution that issued the card may take legal action against you to recover the outstanding debt.
The process starts with the bank sending you a notice demanding payment of the outstanding debt. If you fail to respond or make the payment, the bank may file a case against you in court.
In UAE, defaulting on a credit card is considered a criminal offence, and you may be charged under Article 401 of the UAE Penal Code. If convicted, you may face imprisonment for a period of up to three years and/or a fine of up to AED 10,000.
Furthermore, your credit score may be negatively impacted, making it difficult for you to obtain credit or loans in the future. In extreme cases, you may also face deportation if you are a foreign national and fail to repay your debts.
It’s important to note that UAE has recently introduced new bankruptcy laws that provide relief to individuals who are unable to repay their debts. The new laws allow for debt restructuring and provide a path for individuals to clear their debts and start fresh. However, it’s always advisable to seek legal advice and work with your creditors to resolve any outstanding debts before the situation escalates to legal action.
What is the procedure for dealing with my UAE bank holding my end-of-service benefits (EOSB) to cover my credit card debt?
In the United Arab Emirates, if you have a salary transfer account with a local bank, your End of Service Benefits (EOSB) will most likely be transferred to that account by your employer. However, if you have outstanding liabilities with the bank in the form of a personal loan or other obligations with irregular payments, your access to your EOSB may be restricted until you provide new employment details or clear your liabilities.
To ensure that your liabilities are cleared and that you have access to your EOSB, the bank may take several actions. If you have a credit card, the bank may temporarily reduce your card limit to the amount of your outstanding balance plus AED 5,000. If you use your card limit in full, the outstanding amount will be debited from your EOSB, and your credit card will be temporarily blocked.
If you have a personal loan, the outstanding loan amount will be blocked from your EOSB. If your outstanding loan amount is more than your EOSB, the bank will block your EOSB in full.
If you have overdue payments or delinquency on other liabilities, the bank may debit all overdue payments from your EOSB or block any outstanding amounts owed to the bank in your account. It is essential to clear any outstanding liabilities before you leave your job to ensure a smooth and hassle-free process when accessing your EOSB.
What are my options for settling my credit card debts with a bank if my cheque was initially with the one Emirate but they are now threatening to present it in a different Emirate?
If your cheque was initially with one Emirate but the bank is now threatening to present it in a different Emirate, you should contact the bank as soon as possible to clarify the situation. You can explain the situation and try to negotiate a settlement plan that works for both you and the bank.
It is important to note that the terms and conditions of UAE banks are governed by the rules of Islamic Shari’ah and the laws of the Emirate of Dubai and the UAE, to the extent that they do not contradict the rules of Islamic Shari’ah. This means that the bank must follow these rules and laws when dealing with your credit card debt.
If you are unable to reach an agreement with the bank, you may need to seek legal advice. The terms and conditions state that both you and the bank submit to the non-exclusive jurisdiction of the civil courts of the UAE. This means that if you cannot resolve the issue through negotiation, you may need to file a lawsuit against the bank in a civil court in the UAE.
However, it is important to note that submitting to the jurisdiction of the civil courts of the UAE does not restrict the bank’s rights to bring proceedings against you in any other jurisdiction. Therefore, it is in your best interest to try to negotiate a settlement with the bank before taking any legal action.
Is it within the discretion of the bank to refuse a settlement offer for a UAE credit card based on a personal loan despite providing proof for inability to pay dues and payment of fees for the loan case, after previously requesting proof?
In general, UAEN banks have the discretion to accept or reject a settlement offer for a credit card based on a personal loan. However, they must comply with any applicable laws and regulations, as well as the terms and conditions of the loan and credit card agreements.
If you provided proof of your inability to pay dues and payment of fees for the loan case, the bank may take these factors into consideration when deciding whether to accept your settlement offer. However, the bank may also consider other factors, such as your credit score, payment history, and overall financial situation.
If the bank previously requested proof and you provided it, they should have reviewed the information and made a decision based on the evidence. If you believe that the bank acted unfairly or in violation of any laws or regulations, you may want to consult with a legal professional to explore your options for recourse.
In summary, banks have the discretion to accept or reject settlement offers for credit card debts based on personal loans. However, they must follow the terms and conditions of the loan and credit card agreements, as well as applicable laws and regulations. If you believe that the bank acted unfairly or unlawfully, you may want to seek legal advice.