Legal Advice for Credit Card Debt in Uae

If your company would like to publish press releases or management articles, please contact content@legal500.com At the time an account holder defaults, the creditor has the privilege of filing a criminal complaint regarding the uncashed cheque as well as civil collection proceedings. Despite the fact that, as mentioned, this method gives creditors a sense of security in the recovery of their outstanding amount. It also has the additional consequence that disciplinary measures are taken into account in the event of non-payment. At the same time, the criminal legislation of the United Arab Emirates and its authorities are subject to additional burdens due to the number of cases of NSF cheques. Banking settlement lawyers will investigate the situation as well as the facts that must represent you before the disruptive debt collectors and the respective loan collection banking partners. A specialist lawyer in the UAE gives the debtor a consolidated chance to have a flexible payment plan or concession on your amount of interest, sometimes with the principle and provides you with the cushion to plan your finances. Credit card defaults should not be taken lightly, and credit card holders should be familiar with the consequences of such defaults. It is important to understand that defaulted payments for a credit card are held for many years, even if you have repaid the entire defaulted amount. Payment defaults on credit card payments can have many long-term effects, which will be discussed in this article. It`s important to develop your financial knowledge about your credit card scores and constantly strive to maintain a good credit card report. To increase your credit score, you can follow the steps below, including paying all your bills on time. In addition, frequent changes to your bank accounts can have a negative impact on your credit card rating. Your credit card score will automatically increase if you refrain from adding more to your debt and paying down your debt.

Instead of choosing the minimum payment options, one should focus on improving their debt history and essentially achieving a lower debt-to-equity ratio. In addition, it should be kept in mind that credit card defaults can potentially trigger civil and criminal proceedings against the defaulting debtor, including the imposition of a travel ban. Depending on the amount unpaid, the penalty may include imprisonment and/or a fine. Limited understanding of UAE laws and regulations, lack of language or procedural skills, inexperienced negotiation skills, inappropriate and premature pressure from debt collectors combined with a lack of security deter unintentional debtors from managing their affairs in a timely manner. It is important to know the local laws, understand your legal rights, get the right settlement documents, know the penalty and interest fees that may be imposed, return of security documents, understand the exact process and ensure fair negotiations as they are all very important in such a process. A default is also overlooked by a bank as a serious and serious offense that often interferes with communication between the parties, leading to a stalemate and thus preventing the debtor from returning to the UAE. How long do I owe this debt to the banks? A friend told me that debts are written off after six years. Is this true and can I return to the UAE without any problems? KR, South Africa In the United Arab Emirates, the federal organization of the Al Etihad Credit Bureau (AECB) is responsible for collecting all credit data and information and is responsible for providing accurate credit reports to individuals, financial institutions and businesses in the UAE. The AECB was established in 2014 as a CPSP entity wholly owned by the Federal Government of the United Arab Emirates with offices in the Emirates of Dubai and Abu Dhabi. Any resident of the United Arab Emirates can obtain their credit score and credit report through the AECB for a nominal fee. Getting a credit report and knowing your credit score can be the first step to fully understanding your debt levels and taking financial planning steps. A low credit card score can negatively impact you by: A credit card score can be understood as a three-digit ranking maintained independently, with a higher ranking indicating better credibility.

A credit score is an indication of a borrower`s credibility and provides a roadmap for determining their creditworthiness. An AECB credit card score above 700 indicates a good credit rating. Essentially, every UAE resident may be able to have a credit card rating in their name, based on their various financial transactions. The AECB`s process for determining credit scores is to compile all credit history data based on loans, mortgage payments, credit card transactions, utility payments, court orders and judgments. All financial defaults in the UAE are linked to the name and identification document of the defaultee and are therefore automatically part of the records kept by the AECB.