Dubai Debt in the UK

[Jengles]

Hello, I've been reading about this topic offline with a lot of interest and there's been some really sound advice. I was hoping the same people could offer some help in my predicament....

 

I've worked in Dubai for about 5 years, got a personal loan with a local bank to pay for a development project. The project when belly side up. I refused to pay due to the fact nothing was being built, and even after it would have been built, there would be no infrastructure (water, power, sewage lines) to make it habitable. There was also no way to get my money back despite legal action. The developers have since done a runner too.

 

Despite this, I continued paying off the loan. When I was made redundant, I went to the bank to discuss about changing the payment plan, and offering the property investment as collateral. Unsurprisingly they turned it down. In the end, the banks, the infrastructure developers all fall under one roof, I had enough, it was time to go back to the UK.

 

I wasn't happy leaving debt behind. I did want to pay as much off as I could. I left enough money in my UAE account to pay for a year's loan repayments. After 3 years of leaving the UAE, my parents receive a letter today from a UK based law firm that claims to be representing the bank. They claim they have "international jurisdiction" - does that even exists? They are requesting that I reply within 21 days with a plan of how I intend to repay them.

 

Note I have not lived with my parents for more than 16 years, however I still have UK bank statements sent there. Does this implicate them?

 

What should I do about the letter? Ignore it? Return it? Tell them I no longer live there, if anything at all? If they can not contact me, are they able to issue a CCJ without me knowing? And how nasty could this all turn out?

 

I noticed a lot of similar threads deal with DCAs, but I'm being approached by a law firm.....what does this mean?

 

By virtue of hindsight, yes I know it was stupid to invest in Dubai, and yes, very stupid to take out a loan and leave it behind. And yes, the injustice that locals get their loans wiped clean whilst expats get sent to prison (which I think is counter productive), and a bigger injustice that so called investment companies are allowed by the UAE to get hard working people to invest, only for them to get screwed and the big bogus investors do a runner themselves with no repercussions....huff, had to get that rant out the way.... But what's done is done.....

 

I'd be lying if this isn't causing me sleepless nights. Would appreciate any sound knowledgeable advice.

 

Ta.

[antone]

Hello, and welcome to CAG. I'm afraid I'm not a debt guy, but I've moved your thread to another CAG forum where you may get more responses.

[MARTIN3030]

Hello,we have seen lots of reports which usually concern OZ Canada and others.I dont know if there has been any from Dubai off hand.

Nevertheless,there is due process and rules in place that prevent these collection activities in most cases.

It would be helpful to us if you could give us the name of the firm that has written to you so we can check it further.If you do not want to post that info here,you can click on the black triangle at the bottom of this post and send the information to the site team.

[MARTIN3030]

Just a thought-this would not be CCI Legal (also known as Tracenet UK Ltd and Global Credit Solutions UK Ltd ) would it ?

[cerberusalert]

There are no reciprocal agreements between any of the Arab countries & the UK with regards to debt collection. They can huff & puff as much as they like & even threaten to bring legal action here in the UK but at the end of the day you can contest on the basis that a UK court does not have legal jurisdiction to hear the action unless you agree to it.... which obviously you wouldn't.

 

Unless it's a UK DCA or law firm contacting you via your parents there isn't a great deal that can be done to prevent it as they are not 'policed' by the OFT, FSA etc.

 

As MARTIN3030 says, name & shame the bank & the solictors.... they are probably known to us.

[cerberusalert]

Have you checked your UK credit file with the three main CRAs?

 

It will be interesting to see who is recorded as doing a search because it's highly likely that they have obtained your parents address through that because of your bank a/c. If so they will be in breach of the Data Protection Act for improper use of your private information.

[Jengles]

Hello,

 

Thanks Antone for moving my post, I wasn't sure where to post to begin with.

 

Martin3030 and Cerberusalert - I have sent the details of the law firm to Martin3030.....I don't think they're the CCI Legal as mentioned....

[MARTIN3030]

Ok thanks will take a look when I get it.

[cerberusalert]

It's a complicated situation for them, basically they would need to of already have obtained a judgment in Dubai & then they would need to ask a UK court to enforce. The problem they would have is there is a strict time limit for them to do that even if Dubai were signatories to bilateral conventions which are given effect covered by the Administration of Justice Act, 1920 and the Foreign Judgments (Reciprocal Enforcement) Act, 1933; otherwise any case would have to be heard under UK 'Common Law' and as any agreement you had with your creditor will be covered by Dubai law you could contest the jurisdiction of a UK court. See; http://www.lavellecoleman.ie/cuuploads/editor/file/EnforcementofForeignJudgementsinEnglandandWales.pdf

 

If your parents send the letter back telling them that you are no longer resident there they cannot continue to pester your parents otherwise they will be in breach of debt collection guidelines, also your parents are under no legal obligation to tell them where you are.

 

They will be trying to contact you via your parents because you told the bank it was a UK contact address, when the Solicitors get no joy there they will probably use 'Tracing Agents' to try & find you. How hard they try or pursue really depends on the amount you allegedly owe.

[Jengles]

Hi there,

 

Just a polite bump to see if the site team has any info of the law firm? And indeed, if any posters out there have had a similar experience.

 

Cheers,

J

[cerberusalert]

Didn't you get my emails?

[Jengles]

Just checked now, yes! back at ya!