# Debt in Dubai - Default? / Negotiation options?



## Lamplighter (Jul 20, 2010)

Hi

Briefly, I am changing jobs in UAE, and have just exited Dubai on my cancelled residence visa and returned in the interim as a visitor.

I am in the process of setting up a new Company which will become my sponsor and from which I will pay myself salary. I estimate that it will take a further 2-4 weeks to finalise the Company formation. I can demonstrate funding and revenue for the Company.

My bank, who had a salary transfer letter guarantee from my former employer, are aware that I am no longer employed by this same employer. I have a personal unsecured loan with this bank, a vehicle loan, a couple of credit cards and an authorised overdraft.

My repayment history until recently was trouble-free, but in the last few months I have had a couple of missed payments. The arrears are fairly small, however the overall indebtedness is quite large as I previously transferred my borrowing from UK to UAE (in hindsight, perhaps naively!).

I received a call today from a chap in the bank's legal department saying that my accounts had been passed over to them. I am sure that this has been triggered not only by the missed payments but also by the cancellation of my residency. I told him that I was back in Dubai. He mentioned a police case and travel ban, but I didn't establish whether this is something the bank has already done, or that it is their next intention. I also don't know what precisely constitutes a "default", but that particular word was not mentioned in our conversation. I still have online access to my accounts, but there is a "hold" amount on the current account equal to my total indebtedness.

He told me it is not too late to find "a solution", and asked me to attend a meeting at their legal department HQ (in Dubai Outsource Zone) on Saturday to discuss "how this can be solved".

I am happy to have such discussions on the basis they can be constructive and lead to some form of agreed repayment plan. However, I am also rather concerned from what I read about banks reactions to debt that the bank might not be interested to discuss it at all, and that I could be walking into a trap.

I would be grateful for some advice as to what to do regarding this proposed meeting, either on the board or through private message. Should I be fearful?

Thanks
Lamp


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## Toon (Feb 28, 2012)

Did you give them a security cheque?

If yes, negotiate cos it could get bad for you

If no

Bovvered?


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## Lamplighter (Jul 20, 2010)

Hi Toon

Against the unsecured loan, definitely yes. Vehicle loan / CCs / overdraft - not sure without digging out the application copies.

I want to negotiate and don't wish to miss this meeting if it is a genuine offer to find a solution, but at the same time I'm rather wary of going there in person.

Cheers


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## my.ninty (May 18, 2012)

I would go and attend if I was you. 
It's perhaps worth preparing a proposed repayment plan in advance and present to them for their review. 
But if you don't attend, travel ban, police report, etc. will be the start only I think. 
Good luck with the meeting.


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## Toon (Feb 28, 2012)

Can I just add, that there is obviously no police case or travel ban as if there was you wouldn't have been let back in to UAE.


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## Lamplighter (Jul 20, 2010)

Thanks both

I was not intending to ignore the meeting completely, instead I was considering calling the chap by phone and negotiating from a "safe distance".

What is worst case? I was not stopped entering the country early hours Thurs, so if the police case has already been registered, it can only have been on Thursday (yesterday). Is there any risk of being detained by attending this meeting, as this is of course my only real fear, or do other legal processes have to occur first (hearing etc)?

Thanks


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## Toon (Feb 28, 2012)

Lamplighter said:


> Thanks both
> 
> I was not intending to ignore the meeting completely, instead I was considering calling the chap by phone and negotiating from a "safe distance".
> 
> ...


They could only get you detained if they already had a police case against you (which it would appear they haven't). 

I would call him first and go through the options, explain that you'll get your payments up to date and continue as you were before. They want the $$$, not you in the nick!


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## Lamplighter (Jul 20, 2010)

Toon said:


> They could only get you detained if they already had a police case against you (which it would appear they haven't).
> 
> I would call him first and go through the options, explain that you'll get your payments up to date and continue as you were before. They want the $$$, not you in the nick!


I'm not clear whether he told me that they opened the police case on Thursday, however I think you're right about their first priority to be securing the $$$ not putting me away!

I see the prudent approach to be to phone them first thing Saturday, to discuss what they consider _might_ be a plan, and to explain I need a couple of working days to confirm the extent to which I can comply (speak to my business partner, investors, customers), following which I'm amenable to a meeting in person to formalise some agreement.

Hope this is viewed as the right approach.

Cheers
Lamp


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## Toon (Feb 28, 2012)

Lamplighter said:


> I'm not clear whether he told me that they opened the police case on Thursday, however I think you're right about their first priority to be securing the $$$ not putting me away!
> 
> I see the prudent approach to be to phone them first thing Saturday, to discuss what they consider _might_ be a plan, and to explain I need a couple of working days to confirm the extent to which I can comply (speak to my business partner, investors, customers), following which I'm amenable to a meeting in person to formalise some agreement.
> 
> ...


Sounds good, but you gotta understand, you're not dealing with normal tolerant westerners.

You're dealing with Indians, and they shout and threaten you all the time, they love it cos for once you're on the back foot.

Anyways, good luck.


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## rsinner (Feb 3, 2009)

Toon said:


> for once you're on the back foot.


Seriously ?! 
Sorry, nothing more to add to the thread apart from saying best of luck. I have a strong feeling that no police case has been registered, else you would have heard from the police.


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## Elphaba (Jan 24, 2008)

Lamplighter said:


> Hi
> 
> Briefly, I am changing jobs in UAE, and have just exited Dubai on my cancelled residence visa and returned in the interim as a visitor.
> 
> ...


The options will depend on the bank, but technically you will have breached your loan agreement if salary payments are no longer being made to the main account.

Suggest you contact me ASAP to see if I can help. I deal with such issues all the time via my weekly column in The National newspaper. Recent column below for info:

On Your Side: Employers must provide air tickets for departing staff - The National


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## HarryK (Aug 31, 2010)

Toon said:


> Sounds good, but you gotta understand, you're not dealing with normal tolerant westerners.
> 
> You're dealing with Indians, and they shout and threaten you all the time, they love it cos for once you're on the back foot.
> 
> Anyways, good luck.


Dealing with Indians!!, typical generalisation from a fellow Brit... Zzzzzzzzz how about your dealing with a bank worker who is employed to recoup money you owe and the use negotiation is not on par with what we are use too. 

Btw Indians are normal, just different. Just like Geordies are normal, but different.


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