# Debt in uae



## COFFEE

I have a small amount of credit card debt here in the UAE and recently been terminated. I have to head back home and will not have paid it all back. Is this debt likely to show on my credit history in Australia? We have a HSBC bank in Aus but I do not have an account with them in Aus and expect the privacy laws will also come into play?
Anyone have any advice? I will head back with no job and what i thought seemed secure is now a mess. Not that I am trying to be shifty or careless but one can only do so much. What seemed like a good idea now seems to be a big mistake coming to the UAE.


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## Andy Capp

Sorry to hear about your situation, the only thing you really need to be aware of is that if you ever - even 5 or 10 years time - come back here (even in transit) you will be arrested... HSBC have nothing to do with HSBC elsewhere in the world, and if it's a relatively (sub AED250K) small amount, they're _unlikely _to follow it up in Aus.

Good luck and sorry things didn't work out for you.


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## Lenochka

They will most likely not pursue it in Australia, specially if the outstanding amount is not significant. However, HSBC ME is part of the HSBC Group worldwide and, if you are trying to bank with other HSBC entities around the globe it may raise a flag....I bank with HSBC locally and I can use my unique account number with other HSBC entities elsewhere...something which proves quite often fairly difficult for some of their competitors.....the fact that HSBC's overall service level can be an issue is another story.....


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## crazymazy1980

Andy Capp said:


> Sorry to hear about your situation, the only thing you really need to be aware of is that if you ever - even 5 or 10 years time - come back here (even in transit) you will be arrested...* HSBC have nothing to do with HSBC elsewhere in the world*, and if it's a relatively (sub AED250K) small amount, they're _unlikely _to follow it up in Aus.
> 
> Good luck and sorry things didn't work out for you.


I think you will find they do!


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## crazymazy1980

COFFEE said:


> I have a small amount of credit card debt here in the UAE and recently been terminated. I have to head back home and will not have paid it all back. Is this debt likely to show on my credit history in Australia? We have a HSBC bank in Aus but I do not have an account with them in Aus and expect the privacy laws will also come into play?
> Anyone have any advice? I will head back with no job and what i thought seemed secure is now a mess. Not that I am trying to be shifty or careless but one can only do so much. What seemed like a good idea now seems to be a big mistake coming to the UAE.


When you say small, what do you mean?

I would suggest that until you have paid it off you carry on making international transfers into the account and keep paying at least the minimum payments. That way once you have got yourself on your feet you can then pay more off.

The world of finance is global and banks have to talk to each other to minimise the risks that they take. If you abscond from the UAE without settling your debts then HBME can let HSBC AP know and it could affect your credit rating in Oz. Privacy law doesn't even come into it, if HSBC mark you down as a bad credit risk with the Australian credit bureau they are entirely within their rights to do so if you fail to fulfil a credit agreement.

I know the situation is not looking good for you and I hope that you get things sorted when you return home but for other people out there, do not live on your credit cards, if you can't afford to buy it please save up first unless it is absolutely necessary and have savings to back up the purchase. Always pay the full amount off EVERY month!

Sorry to hear about you losing your job


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## dizzyizzy

sorry to hear about your situation,, it sucks  

I know this story from a colleague of mine who met this filipino girl. She took a loan with a bank (not sure which one), for a small amount (around 30K aed) and then left the country. She went back to the Philipines, and she wasn't prosecuted there. Couple of years later she found a job in Italy, but in a case of extremely bad luck, the plane where she was flying had problems and had to do an emergency landing in Dubai. She refused to leave the plane, as she knew she was going to be in major trouble, but to no avail, and airport security had to force her out. The police were waiting for her at the gate and she was arrested right there. She is now serving jail time however I don't know for how long she will stay there. 

This is a case of extremely bad luck but the point is that it can happen so is better that people are aware of the consequences of leaving the UAE with unpaid debts


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## Hamish

try and meet the minimum repayments. If you miss the first two months or so, they will freeze the account and send an enforcement letter. At that stage I would contact them and agree a payment plan that you can afford.


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## Guest

They won't follow you to Australia if it's a small amount, however like Andy mentioned if you were to come back here ever again, you will be arrested and if you can pay it off on the spot you're out of jail, if not, your stuck in jail for whatever period you get sentenced to.

Secondly, if this is going to be a paranoia for some folks, put your money in local banks rather than international banks like HSBC.... 

A lot of people are being terminated & sacked out of work, however the banks normally in situations like this are understandable and will give you a grace period of up to 6 months with no interest & no payment.

-Joey


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## stevieboy1980

i dont see how they can trace you, if you move to uk or anywhere, i cant imagine they would persue it, i maybe wrong..
so if your in the uae and have say...
a car loan, and therefore car......
a credit card with some on...
car - surely if your leaving you can dump it at HSBC and give it back and say you cannot afford it, they own it after all???
credit card... erm just leave???

peoples experience on this would be most grateful...

always just in case...

i want to save money whilst im here, ie not pay car loan off...


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## COFFEE

Thanks for all the comments and responces.
Sure, we all know to spend only what we have. That is not always as easily said as done, when you are trying to get started and settled you often spend more than you have initially to get started and end up in my shoes, you have a wages that can cover and should be able to clear very quickly so you don't stress to much. You do not expect to be terminated as a lot have been and are finding out 3-6 months after signing a multiple year long contract. It seems a lot of people are in the same boat, what is one to do. If there is little or no work you are forced to go back home. Such is life I guess, lesson to be learnt!


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## sgilli3

Personally- I would still try and make min payments at least.

This article in the news the other day highlights how far debt collectors will chase up debtors.
I think we will see more of this in the future.


Lawyers given permission to serve debtors with default judgement through Facebook | News | News.com.au


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## homesickoz

Does anyone have any recent news/updates on this matter? Bit worried about my job security in UAE, wondering if I can expect to be chased back in Oz for the outstanding? Anyone in similar situation that could help?


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## Rahulma

I am really sorry to hear that.

Best advice I can give is: try to repay your debt, negotiate with the Bank. After all you are unemployed. Try to set up some sort of minimum installments plan. Remember to ask for a statement or something in writing that you have an agreement with the Bank.

Do this when you arrive in Australia. Not before. (I do not know the law ..can they force you to stay in the country ?)

Thanks for sharing your story. Sure it is something to think about for those who are planning to go there.

Best of luck


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## Midos

Write to the bank after you leave , not before. Because if you contact them before, they will report you to the police who will confiscate your passport and you will be stuck . 
Once you are back to Australia, try mini payment via Western Union on a monthly basis, this way your bank won't raise a flag.


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## Fatenhappy

COFFEE said:


> I have a small amount of credit card debt here in the UAE and recently been terminated. I have to head back home and will not have paid it all back. Is this debt likely to show on my credit history in Australia? We have a HSBC bank in Aus but I do not have an account with them in Aus and expect the privacy laws will also come into play?
> Anyone have any advice? I will head back with no job and what i thought seemed secure is now a mess. Not that I am trying to be shifty or careless but one can only do so much. What seemed like a good idea now seems to be a big mistake coming to the UAE.


Food for thought .....

There were interesting articles reported in the press here just a little while back, where they were reporting on the traceability of law against people who exit the UAE with outstanding debt. Sources went on to explain that people who do this are now apparently going to be reported to Interpol so that the debt will have traceability/transferability and therefore be enforceable.... 

As far as I am concerned, if it is an accurate representation, I am all for it! ... :clap2:

At the very least I would be talking with my creditors, even if only to cover my own back side !

Good luck with your future and I do hope things work out for the best! ... :clap2:


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## LiverpoolMan

I work at an international bank, and it all depends on how much you owe.

If you go back to AUstralia then the bank may chase you up especially if its HSBC and they will contact you through various agents in Australia. Once you are there, they can only extradite you if the bank sues you and files a claim with UAE courts here, in which case they can do, however this is very unlikely unless you owe huge amounts.

If you leave UAE without negotiating it with your bank UAE will blacklist you and you will not be able to return as mentioned above. HSBC is a global bank, and so your credit ratings will suffer even back in australia. Its in your best interest to go to HSBC and explain the situation, (maybe hypothetically) and ask what would happen. 

The worst thing you can do is leave the country and stop paying, without explanation of your situation.

Hope that helps.

Also check if you have payment protection insurance, which you maybe unaware of as many banks hide it in the small print, in which case you will have a probationary period where you will not have to make any payments for a while until you regain work (usually 6months to a year).


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## Mr Rossi

LiverpoolMan said:


> The worst thing you can do is leave the country and stop paying, without explanation of your situation.


Worse than being indefinitely detained in a holding cell with 20 others sharing a hole in the ground for a toilet?

To echo the some other sentiments, get out the country first, even if it means not flying transit by here again. Dubai is not a level a playing field and its laws are inconsistent. 

Go see your bank manager, explain the problem and after 30 minutes of "yes, yes, yes" and "not a problem, my very good friend" he's going to be on the phone to the police before you're even back to your car.


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## Fatenhappy

Mr Rossi said:


> Worse than being indefinitely detained in a holding cell with 20 others sharing a hole in the ground for a toilet?
> 
> To echo the some other sentiments, get out the country first, even if it means not flying transit by here again. Dubai is not a level a playing field and its laws are inconsistent.
> 
> Go see your bank manager, explain the problem and after 30 minutes of "yes, yes, yes" and "not a problem, my very good friend" he's going to be on the phone to the police before you're even back to your car.


I have just noted the date of the original thread post as being 2008 .... So whats the go ? Why reserected now?

But absolutely agree with Mr Rossi .... make sure you attempt to get it covered when safe to do so !!!


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## Midos

Fatenhappy said:


> Food for thought .....
> 
> There were interesting articles reported in the press here just a little while back, where they were reporting on the traceability of law against people who exit the UAE with outstanding debt. Sources went on to explain that people who do this are now apparently going to be reported to Interpol so that the debt will have traceability/transferability and therefore be enforceable....
> 
> As far as I am concerned, if it is an accurate representation, I am all for it! ... :clap2:
> 
> At the very least I would be talking with my creditors, even if only to cover my own back side !
> 
> Good luck with your future and I do hope things work out for the best! ... :clap2:


It depends on the amount. You will only be put on the Interpol list if the debt is larger than a certain threshold amount, I think it is couple of million $$, but don't remember the figure. Interpol won't chase you for smaller amount. It is just empty threats bank agents say. And unless your country has a treaty with Dubai, no one in Australia is allowed to chase you to pay the debt back.


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## Andy Capp

Did anyone see this in the National today?



> The numbers of people actually jailed for bad debts is relatively small, but the perception persists.


Absolute pants, it's huge, and I mean huge here, it's choking up the courts and costing a fortune!


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## Fatenhappy

Midos said:


> It depends on the amount. You will only be put on the Interpol list if the debt is larger than a certain threshold amount, I think it is couple of million $$, but don't remember the figure. Interpol won't chase you for smaller amount. It is just empty threats bank agents say. And unless your country has a treaty with Dubai, no one in Australia is allowed to chase you to pay the debt back.


Actually after considering this whole thing a lot more I've definitely gone hard nosed ....

I have lived off and on in the ME for 12 years ..... 

There were quite a few times during my previous stay here in the ME when I noticed up market motor vehicles ... lets say Porches, upper end Mercs or Beemers parked out side the offices of HP agencies in Oman, covered with a blanket of dust and obviously obandoned ...

Their idea was obviously ... Oh well, I've given the motor back to them so that should be the end of it, before they obviously absconded out of the country with debt.

Just step back and think for a moment ..... would you get away with this back home ... Australia .... UK or wherever else ... not on your life sunshine .... so why here ...?

All it does is make life a whole lot harder for the rest of us .... so no .... bad luck ...

For those who do this ... I hope you face the music if it is your intention to defraud !! ....  !


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## Midos

Cool down Fatenhappy. I am not saying to run away or not. Personally I will never do it. If I have a loan or something, I will make sure to clear it before moving. I never spend more than I can earn and never use credit cards, even though that the bank offered me a credit card i didn't ask for and explicitly state i don't want it, but got it anyway. I even got a call why I never used the credit card to pay my purchases !!! Not mentioning the credit cards offers you gets on the phone from random banks. 

I am just stating some facts. Is it ethical or legal to do it ?? NO it is not. But the banks also share a responsibilities of giving credits cards or loans knowing in advance you cannot pay it back !!. In my country or France, it is practically a challenge to get a loan/credit card. They will do a background check, enquire about your/your family financial status and have physical (land/ car guarantee). They reject large percentage of the requests. So why in dubai they keep offering loans left/ right to anyone and insisting for you to get one even though you may not be able to pay it back????


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## vona62

I have simular situation, when I finally left ME and UAE I cleared my bank accounts (no credit card or debts) and left. I found later an anti virus software package I free trialled for 60days had been purchased and charged to my account. At this time I still dont know if it was approved (hopefully) before I closed my account or after. 
If after then I run the risk of arrest in transit thru Dubai and I travel extensively with my work. I tried getting info from EB, has anyone tried having a serious conversation recently with the brain dead telephone staff at EB. Two regrets, I worked in Dubai, I banked in Dubai


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## wandabug

Worse can happen, you will come thru Dubai airport and be stopped for the outstanding debt, if you can pay the police the full amount they will immediately release you ( I think I am correct on this maybe someone can confirm) If this is true then make sure you have enough on you to pay it off - cant be that much for an anti-virus package.


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## Elphaba

vona62 said:


> I have simular situation, when I finally left ME and UAE I cleared my bank accounts (no credit card or debts) and left. I found later an anti virus software package I free trialled for 60days had been purchased and charged to my account. At this time I still dont know if it was approved (hopefully) before I closed my account or after.
> If after then I run the risk of arrest in transit thru Dubai and I travel extensively with my work. I tried getting info from EB, has anyone tried having a serious conversation recently with the brain dead telephone staff at EB. Two regrets, I worked in Dubai, I banked in Dubai


I can probably help with this issue as I have some decent contacts at Emirates NBD. All my readers' issues have been happily resolved so far, so you may want to PM me.
-


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## Mr Rossi

wandabug said:


> Worse can happen, you will come thru Dubai airport and be stopped for the outstanding debt, if you can pay the police the full amount they will immediately release you ( I think I am correct on this maybe someone can confirm)


I can confirm this has happened to someone I know.


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## vona62

wandabug said:


> Worse can happen, you will come thru Dubai airport and be stopped for the outstanding debt, if you can pay the police the full amount they will immediately release you ( I think I am correct on this maybe someone can confirm) If this is true then make sure you have enough on you to pay it off - cant be that much for an anti-virus package.


Thanks Wandabug, good to know there is an option to auto arrest/jail time. SW cost just $90. Problem was when I closed my account I did'nt know I had already been billed, EB didn't provide a statement so have no way of confirming payment was made or not.


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## Elphaba

vona62 said:


> Thanks Wandabug, good to know there is an option to auto arrest/jail time. SW cost just $90. Problem was when I closed my account I did'nt know I had already been billed, EB didn't provide a statement so have no way of confirming payment was made or not.


Well, I have offered to help...
-


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## Fatenhappy

Midos said:


> Cool down Fatenhappy. I am not saying to run away or not. Personally I will never do it. If I have a loan or something, I will make sure to clear it before moving. I never spend more than I can earn and never use credit cards, even though that the bank offered me a credit card i didn't ask for and explicitly state i don't want it, but got it anyway. I even got a call why I never used the credit card to pay my purchases !!! Not mentioning the credit cards offers you gets on the phone from random banks.
> 
> I am just stating some facts. Is it ethical or legal to do it ?? NO it is not. But the banks also share a responsibilities of giving credits cards or loans knowing in advance you cannot pay it back !!. In my country or France, it is practically a challenge to get a loan/credit card. They will do a background check, enquire about your/your family financial status and have physical (land/ car guarantee). They reject large percentage of the requests. So why in dubai they keep offering loans left/ right to anyone and insisting for you to get one even though you may not be able to pay it back????


No dramas Midos ... not at all ... all I am saying is when people attract a debt it is their moral duty as far as I am concerned to make all efforts to clear the same. I am the one who makes my financial bed that I must deal with. Although there are exceptions, in the main they are very rare and far between.

I would always go out of my way to assist anyone genuinely in need, especially through no fault of their own. Its only when people deliberately go out of their way not to address issues that I get up on my soap box .... :eyebrows: ...


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## vona62

Elphaba said:


> Well, I have offered to help...
> -


Hi Elphaba, tried to send PM but unable to find your contact. Usually I get drop menu if cursor is on a name - didn't happen. Pls advise how to PM you


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## s_kates81

Hi, I tried to PM but I can't. I will appreciate if you can PM me about your contacts at Emirates NBD? Thanks a lot.


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