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Leaving the UAE with Debt


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#1 ryan81

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Posted 06 January 2009 - 11:32 AM

What happens when expats are suddenly out of work and are forced to leave the country but are unable to pay their credit cards and loan debt fully thus leaving it oustanding? Is there anyone with first hand knowledge rather than guesses...?

#2 nougatness

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Posted 06 January 2009 - 12:24 PM

The employer informs the bank that your salary is paid into when you leave work, and any banks that you have had to get a confirmation letter of employment from for CC and loans.
The bank can and will call in total amount owed to be paid in full, before you can legally leave country. Unfortunately for them, I know people who have spoken with the banks to try to keep loan here and sort out terms so that they continue paying from their home country, but the banks have been uncooperative and they have been threatened with jail if the loan wasn't paid out in full.
Some people in this situation have chosen a one way ticket out instead of facing prison time. Not advocating that decision, just saying.


#3 ryan81

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Posted 06 January 2009 - 12:40 PM

I've also "heard" of people leaving without any notice to avoid these problems which is why I was curious. I've never heard stories of people being chased for debt though. A friend of mine left Australia with over $20k of credit card debt back to India and was never faced with a problem, however I wouldn't want to step foot in Australia ever again if I were him.

Not planning on leaving with debt but if I had no choice after losing my job, I wouldn't hesitate to do the unethical rather than face jail here which to me, is more unethical.

#4 nougatness

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Posted 06 January 2009 - 12:49 PM

Yeah, people are put in between a rock and a hard place and have to do things they wouldn't have previously even contemplated, because of a lack of reason and cooperation. They probably wouldn't get chased for it, but I would be sweating if I was flying anywhere near the GCC again in my life.

#5 Tongue Tied

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Posted 06 January 2009 - 12:51 PM

Am glad I haven't managed to rack up any debts yet being a newbie, and will certainly try to avoid knowing that! The only thing with leaving debts behind here is that you would never be able to travel anywhere that flies through/over AD. I heard of someone whose flight had to land here (unscheduled stop on way to far east from UK) and they were arrested at the airport. They don't chase you for it, but as soon as they scan your passport at the airport it'll show up on your record. Scary thought either way. How do people who had to take a loan to pay their rent cope? Do they get the balance of the money back from their company/landlord or not?

#6 ryan81

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Posted 06 January 2009 - 01:49 PM

Funny enough I just spoke with a friend who has another "friend" in a bank here who told him the bank cannot force you to repay credit card debt if you show them a letter from your company stating that you no longer have a job.

Loans, his friend didnt tell him the consequences.

#7 nougatness

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Posted 06 January 2009 - 01:53 PM

That's interesting about the cards - the people I have know have had issues with loans.

#8 Tongue Tied

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Posted 06 January 2009 - 02:03 PM

Perhaps the credit card fees include insurance which covers redundancy. Think that's how it used to be in the UK before they stopped charging annual fees and made the insurance an optional extra.

#9 nickfish

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Posted 06 January 2009 - 02:06 PM

What about if you have a mortgage with a bank here and have property here??does it all get cancelled or can you continue paying from overseas??

#10 Tongue Tied

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Posted 06 January 2009 - 02:12 PM

If you have a mortgage here then you are able to change your status - if you own a property but don't work here they have a separate category for that.

#11 hotwire13

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Posted 06 January 2009 - 02:51 PM

Interestingly...I know somebody who was jailed due to non payment of her loan, but after paying the outstanding amount (she did not pay for at least 4 consecutive monthly installment) she was released and now continue to pay the bank for her loan.

I was wondering if she can in anyway, sue or complaint the bank which kept her in jail for like 3 weeks since they brought humiliation to her not to mention that after her release they ask her to continue paying her loan...

#12 hotwire13

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Posted 06 January 2009 - 02:52 PM

QUOTE (ryan81 @ Jan 6 2009, 11:32 AM)
What happens when expats are suddenly out of work and are forced to leave the country but are unable to pay their credit cards and loan debt fully thus leaving it oustanding? Is there anyone with first hand knowledge rather than guesses...?

hi ryan81, this is the only country which deals with private bank matters with their customers, basically if you gave a security check upon your application of any loan or credit card, they can sue you using that check if you we're not able to pay back...no matter if you don't have a job anymore...

#13 ryan81

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Posted 06 January 2009 - 04:26 PM

QUOTE (hotwire13 @ Jan 6 2009, 02:52 PM)
hi ryan81, this is the only country which deals with private bank matters with their customers, basically if you gave a security check upon your application of any loan or credit card, they can sue you using that check if you we're not able to pay back...no matter if you don't have a job anymore...

So this is why runners are not uncommon and don't surprise me. If anyone is kept in prison for 3 weeks for non-payment, why on earth would you stay?

#14 lanarkwitch

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Posted 06 January 2009 - 05:05 PM

was this not in the paper a few weeks ago, about banks cutting credit card limits as non nationals were maxing cards and then running back home with the banks money?

I've heard recently that with the amount of expats going home in the night, the amount of cars on HP being left at AD airport is incredible.


#15 smokey

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Posted 06 January 2009 - 05:08 PM

i've heard of the HP cars parked at Dubai airport, but not at AD. Must go take a looksee this weekend.

#16 ryan81

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Posted 06 January 2009 - 05:13 PM

What does HP mean?

#17 smokey

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Posted 06 January 2009 - 05:15 PM

hire purchase ryan.

apparently, they leave the keys in the cars with a letter to the bank concerned.

a joy ride in one of em HP cars could be kinda interesting.

#18 ryan81

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Posted 06 January 2009 - 05:22 PM

Oh thats it im off for a joyride this weekend! hahaha.

Hire purchase how is that different from actually buying a car?

#19 smokey

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Posted 06 January 2009 - 05:27 PM

from my limited knowledge, i think it involves getting a loan and paying in installments ryan

#20 fruitbat

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Posted 06 January 2009 - 05:31 PM

QUOTE (ryan81 @ Jan 6 2009, 12:49 PM)
Funny enough I just spoke with a friend who has another "friend" in a bank here who told him the bank cannot force you to repay credit card debt if you show them a letter from your company stating that you no longer have a job.

Loans, his friend didnt tell him the consequences.

doesnt that rather encourage people to max out on their credit card knowing that if they are forced to leave someone will sort out the problem. Must be alot of outstanding debt around.




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