Dubai Debt - Return to the UK

[JROBERTS]

Dear CAG,

 

I am a UK citizen who is resident in Dubai, UAE.

 

I lost my job a couple of weeks ago and am not having success in finding employment. I have a personal loan for AED 180,000 (around 30k Sterling) and in 10 days, the next payment will default.

 

I am acutely aware of the penalties of this. My security cheque will be bounced criminalising me and making me eligible for a prison term. I have booked a flight back to the Scotland and I am looking for some advice.

 

I have been crawling the web for the last week non-stop to find any case of a UAE bank successfully recovering a debt from a UK citizen when they have returned home. I have recently started emailing UK debt collection agencies under the guise of representing a (non-disclosed) UAE bank to probe their powers in collection but have yet to receive a response that tells me they have any legal jurisdiction. They tell me that they have 'legal rights to pursue' but that just sounds like they are allowed to chase the money, not actually legally recover it through a court. Can anyone confirm this?

 

I know this question has been posted before, but I would like to provide more detail. I am an Emirates NDB customer and they are one of the largest banks out here. Has anybody been in my situation with this bank before? I am fully aware that once I return to the UK, my debt will most likely be sold to a collection agency. Does the UAE bank have any other option to recover the monies?

 

Once the debt is sold, what is the best course of action to get the debt collectors off my case? I will be moving back to my elderly mother and I don't want them turning up making threats.

 

Any advice on this would be hugely appreciated.

 

A worried Scottish gent.

 

JR

[unclebulgaria67]

Personal debts are not often chased across borders where the legal process and associated costs would not make it worthwhile. They would have to go to court in Dubai and then look to enforce in a UK court.

 

There have been reports of people being chased in UK by debt collections here, so yes you might experience this. But you don't have to respond to any general communications and only respond if they actually issued any UK court claim, which is unlikely.

 

When you return to the UK, as soon as you set up any bank account or arrange anything which reports to the credit reference agencies, they will be able to find you. Of course the problems in Dubai do not affect any UK credit record, but a UK debt collector can search UK credit records.

[citizenB]

TBH, I doubt you will receive a straight answer from a UK Debt Collection Agency. They can be very misleading when they make contact with "debtors" and would probably imply they did have powers that they simply don't have.

[JROBERTS]

Thanks for the feedback folks. It's much appreciated as this is a difficult time.

 

Do you have any advice about how to stop the debt collectors harassing me on my return? Is it best to deny that I am am who I am and hope they go away or should I say I am who I am and get a solicitor involved if they harass? Do you have any links to some template letters I could send to help alleviate the situation?

 

Thanks again!

 

JR

[unclebulgaria67]

You won't be able to stop them contacting you as such, as they would be entitled to write to you. You could only request that all communications are made in writing, if they start phoning you. In Scotland, they cannot make any doorstep visits, as the laws there do not permit this.

 

This is a link to the CAG library of letters, which you can have a look through.

 

http://www.consumeractiongroup.co.uk/forum/content.php?68-debt-collection-library

 

If I were in your situation, I would suggest that you open and read any letter received, but only respond if they actually say that a court claim will be issued. Most debt collectors just talk about the actions that they may take, but they are not allowed to say they will take this or that action involving a court unless they intend to do so. You should inform people living with you about the Dubai debt, so if they receive any phone call that they just ask for the matter to be put in writing, as you are not around at the moment.

 

I would not bother speaking to any Solicitor, unless a court claim is actually issued.

[JROBERTS]

Thanks again folks.

 

I'll follow this advice. I hope it doesn't come to court action but I suppose I'll have to cross that bridge hen I come to it. I'll keep you updated on the progress (or lack thereof - fingers crossed).

 

Namaste,

 

JR

[steampowered]

Your loan agreement will probably have a clause allowing the bank to bring proceedings wherever you happen to be resident. In theory they could sue you in the Scottish courts. However this has costs implications so there is a question mark over whether they would pursue.

 

The best way of avoiding debt collectors is to not tell them your new address...

 

Needless to say - never ever go back to the UAE or have a stopover there.

[TeaTime]

Needless to say - never ever go back to the UAE or have a stopover there.

 

That is a worry. All sorts of flights stop over in the UAE. It would be bad news to pass through transit and be picked up and thrown in jail. Not wanting to worry the OP, but it is something to research. Perhaps this won't be an issue if the debt is sold on to a UK agency, with the debt no longer being liable in UAE. Or perhaps you are a criminal from the moment you default.

 

I am defaulting on debt in an obscure South American country. I contacted various debt collectors, pretending to be collecting the debt, just as the OP has done. They all say that they can collect the money no problem. I guess that is standard patter.

 

Best wishes to the OP.

[unclebulgaria67]

When flights stopover, mostly people are within the transit area and not actually in Dubai as such. It is only if you tried to cross the border into Dubai that you might have a problem.

 

In regard to international debt collection, this is easier said than done.

Many things are possible theoretically, but if there is a lengthy costly process, with no probability of gaining a return, they would not bother.

 

Outside of the EU, it would mean gaining a UK judgement first and the claimant should really go through a proper process of serving papers to the foreign address, with a particular application made for a non resident.

This is not a standard process and it would be more costly.

 

Then they would have to follow the relevant process in the country where the debtor was resident, which might be difficult and costly.

 

Unless the debt was pretty large ( £100k + I would have thought) and the creditor was sure of gaining a return, they would not bother. So they use debt collection agencies who just send you letters, emails or try to phone you, in the hope of gaining payment the easy way.

[codpiece69]

Hi Uncle Bulgaria

 

 

Hope you can help. I am in a similar situation to the Scottish gent, in that I left a bank debt on credit cards (not loan so no bounced cheques). This was in Oct 2008. I am quite happy that over 6 years have passed, that the Limitations Act of 1980 would prevent them from pursuing the debt as no communication of admission of the debt have been made.

 

 

I have been a bit baffled today then by my wife having 5 separate and very pushy phone calls from HSBC in Dubai trying to find me through her. They even had her maiden name which can have only come from Facebook. I have no social media presence

 

 

I have asked her to get an address off them next time they ring to send them a letter confirming that the 6 yr period has elapsed and they have no right to pursue me

 

 

Can you confirm that my understanding of the law is correct and also is my proposed course of action with the letter the best one to take?

 

 

Thanks

 

 

Codpiece 69

[unclebulgaria67]

Probably not HSBC but a debt collector.

 

Statute of lmitations (6 years) would stop enforcement in the UK, so you could tell them that you do not wish to discuss the matter, as it is now subject to English statute of limitations and is not enforceable.

 

She should tell them it is against UK legal requirements that apply to financial services, for them to continue trying to contact someone else via them. FCA rules do not allow communications via a third party.