My quest for proper information about unpaid personal loans or overdue credit card bills started in late 2007. My best friend, who got pregnant two months after she received her personal loan, struggled to find solutions and options to settle her situation.
Unwed pregnancy is a BIG no, no in this country. I really don’t have the grasp of the legal consequences and applicable laws here for unwed pregnancy but it has been known that it can lead you to jail or deportation. Neither of it is favorable, right?
Anyway, my best friend needed to go back home on or before the 7th month of her pregnancy. If she would fly later than that, she would face a challenge in boarding the plane. There might be possibility for rejection which would lead to deeper trouble. To be safe, she had to fly on or before the 7th month of her pregnancy.
The challenge now was her loan. Because her status was single, she was compelled to resign rather than to face the legal consequence of her unwed pregnancy. Once the employee who has bank loan resigns, the employer will automatically inform the bank about it. Your final settlement will also be automatically deposited to your account.
Fearing this scenario, she would likely go home with nothing in hand, not a penny from her final settlement.
In my hope to bring enlightenment to others who may be undergoing the same situation, I planned to write an article about it. However, before I could pitch this brilliant idea to any publication, I must need some concrete information from the reliable sources.
So, I started interviewing few people who worked in the banks. At the back of my mind, there must be a solution for these issues but what are these options. I needed to dig this information. (Unfortunately, two weeks after I pitched the idea in one of the publications, the same idea was featured, front page in a weekend issue.)
Anyway, earlier this month another two friends of mine were in similar quagmire. My friend X took a personal loan in 2007. When he wanted to settle the balance last year, he could not get in touch with the financing company which was affiliated to a local bank. So friend X approached the bank to help him proceed to settling his loan balance.
Unfortunately, the local bank rejected him and advised that they could not help him because that loan was taken from the financing company.
Then ten months after, my friend X received a call from the legal office harassing him for non-payment and urged for full payment within one week. Failure to comply within the deadline means a legal case will be filed against him. Of course, the small amount escalated because of the other charges. The sad part was the legal office was very, very rude on the phone and the harassment stirred major emotional stress on my friend’s part.
Then he came to know also from the legal office that the financing company was closed already. The same reason he was unable to contact the financing company.
Then days after the problem of friend X was settled, I came to know also the same problem of friend Y. Hers was slightly different. She is dealing with another bank. Due to recession, she lost her job so she started to fail paying regularly her monthly dues. Now she starts receiving harassment calls from the legal office too.
I witnessed it with my friend X. This harassment is really no joke and it really creates havoc in your once peaceful life. It is emotionally distressing and draining.
More so, you cannot afford to travel because of fear that the police may pick you up anytime in the airport and lock you up in jail. You will not know at all if these legal offices are simply bluffing or not so you cannot confirm if indeed the case against you is already filed.
The least thing you want to happen is to be picked up by police in the airport.
So, how can you settle overdue personal loans or unpaid credit card bills? Let’s dissect and tackle each case.
Best Friend’s Case. Because she needed to clear her personal loan before she could travel back home and she didn’t have the money to settle the loan she hardly started to pay, her option was to look for a guarantor.
Then she and the guarantor settled her case in the recovery department of the bank. There were required documents too for the guarantor like salary certificate, checks, among others. It is recommended to contact the concerned bank for complete list of requirements.
My Friend X’s Case. His case too was settled in the recovery department. It was quite tricky because he needed to approach the recovery department office where the loan was taken. In his case, it was Dubai. After consulting his options for settlement, he was given a contact person in Abu Dhabi.
While going back and forth to the local bank, the legal office continued calling and harassing him. When he informed the legal office that he would settle it directly in the bank, the legal office insisted to settle it with them. We honestly felt a hue of skepticism as why the legal office continued to urge for payment and to threat for possibility of imprisonment despite the initial contact was made already with the local bank.
Anyhow, the recovery department offered two options.
First Option – Full Payment. The amount escalated already because of the late payment fees, bounced check charges, and who knows what other charges were incurred.
Then the recovery department offered a discount for the total amount if settled on one-time full payment. The banker told us that he would arrange to waive the bounced check charges.
Second Option – Partial Payment. The 50% of the amount has to be settled in cash. And then the remaining balance can be paid on monthly basis for the duration of six months to one year. However, for this option the bank needs a guarantor, and checks issued from the guarantor.
Friend X settled it in full payment. So the bank waived the charges for the bounced checks. After that, the bank issued a clearance certificate stating that he was cleared from his personal loan.
Friend Y’s Case. After she came to know about the solution offered by the bank for Friend X, she decided to go to the recovery department. She had been going back and forth to her local back previously but to no avail. The situation had been dragged but there was no definite solution being offered.
Well, I wish friend Y will settle her problem soon. Good news is she got a new job recently! Hopefully things for her will be smooth again, away from emotional stress and harassment calls.
Lessons Learned. These situations imply us to be frugal and to be smart on our finances especially nowadays that economic situation is not really good.
More so, it is important to talk to the right person in the bank if you face such kind of predicament. They will give you the right information and sometimes if you are lucky to meet a Good Samaritan, he will guide you through and give you financial advice as on how to settle it best.
But I think the best lesson is not to succumb to any luring instant chunk of cash through personal loans or to cave in for the gratification of your personal wants.
If you are in that quagmire already, it is not yet too late. There is still hope. What matter most is learning the lesson – to be prudent in our finances.
25 responses so far ↓
venkat // October 27, 2009 at 5:54 pm |
This is Venkat from India, working in xxxxx, I have credit card account with Barclay bank, my card number xxxxxx, I took AED 12,392+6700, (which is including interest and late payment fine) Total AED 19,092 (Cash+ purchase) from Barclay card, I got the transfer to Qatar from my company, for that I plan to make settlement from bank for my credit card, I went to the bank and ask for settlement they given this (AED 19,092) amount to pay, the same amount has been agreed by both party on 05th May 2009, bank provide a option for payment can be make maximum in 6 month instalment, monthly instalment AED 3,182.00 (EMI), I provide 1cash through UAE Exchange+ 5 mashreq bank cheque (# 51,52, 53, 54 & 55) on the same day, bank agreed and they have receive my cash, cheque and they have no objection also, I return my card with a bank settlement form to the bank on same day, upon bank agree to provide settlement letter within 3 working days, after that I went to Qatar on 7th May 2009 for my business, then after 2 month I receive my bank statement from Dubai office after my request, I found still I have AED 20,995.00 outstanding payment and I receive Demand notice from Bank, which was no one can’t accept, in further I make several calls and message to the customer care and collection department, there was no proper response/reply from the bank, after review and inquiry from mashreq bank account statement, I found my 2 cheques (# 51 & 55) was return due to my signature problem out of 5nos cheque, there was no notification from the Barclay bank, I stop my making payment due to double interest and late payment fine, I sign all the cheque on the same date and time, but I don’t know why my first & last cheque only having signature problem, remaining 3 nos cheque has been approved by the bank, in the mean time bank send some local person (Mr. Murali from India) to my home in karaikudi, tamilnadu, India and they give warning to my father, there was no proper coordination or reply/response from the bank, for that myself and my family mentally disappointed and I can’t work and sleep well, I am willing to make settlement from the bank, but bank want to make more business with me, I belief a God and I don’t want to eat any others money, that’s why I am asking help from any buddy to get settlement from the bank, I am ready to pay and I apologize for return cheque, I can pay that return cheque amount at any time(AED 3182+3182), I don’t want to blame anyone, just I want to make settle from the Barclay bank, kindly consider my request and do the needful.
anna // November 4, 2009 at 9:20 pm |
Hi. This is a very good article. I have the same case with my sister who is already out of the country, but may come back when a good offer comes. I had been able to save her trouble by making minimum payments on her cards with about 2-3 months unpaid balances. But I can’t continue without her, and without the bank stopping their ridiculous charges.
If you know how to contact recovery departments of HSBC, Dubai First and RBS, I would really appreciate your help.
Thanks
CyraMiles // November 17, 2009 at 5:15 am |
@ Anna & Venkat: Thank you for reading this blog. I am really glad that somehow this particular post serves its purpose. Being trap in this kind of situation is really stressful as what I have seen with my friends.
I hope you receive my PM.
Md Abdul Gaffar // April 16, 2010 at 6:41 pm |
Me also have diofferent problem, can i get help from any solvent people to reduce my bulk loan amount, which i am unable tpay in every month and to meet the minimum payment i am borrowing from the persons with a very high interest (120% per month). Pla help me
Cyra Miles // April 16, 2010 at 8:39 pm |
Sorry to hear your predicament Abdul. The only advice I can give to you is to pay a visit to your bank’s recovery department because they can offer you payment options.
Kim Meneses // April 26, 2010 at 3:21 am |
Hi Cyra,
Very informative article. My friends and I have got the same predicament since we were included in redundancy last year. I would appreciate if you could please give us the recovery department number for Dubai First and ADCB just in case you have them.
Thanks,
Kim
Cyra Miles // May 8, 2010 at 4:30 am |
@ Kim: Sorry to hear about the redundancy. Hope you are doing well now. I don’t know the recovery department of these 2 banks. Just call the bank and ask for it. For sure they will tell you.
Jon // April 28, 2010 at 11:32 am |
Hi! I’m glad that i bumped into your site. I really need some advise on my financial burden. I have already made some settlement plans with other banks (which hopefully will finish soon) but am having trouble with HSBC. I have a settlement with them before but have troubled paying them and now they say it is cancelled. But I am still asking me to give another chance but to no avail. I am paying them monthly AED1000 but my interest is going up at AED2000 that is why i ask them for a new settlement plan. Do you know anyone from HSBC to approach and help me settle with them again? Thank You in advance and appreciate the help I can get.
Cyra Miles // May 8, 2010 at 4:28 am |
@ Jon: Sorry to hear about your predicament. Hope you receive my PM.
Anas // May 24, 2010 at 2:46 pm |
Those who having cards from HSBC, RBS, SCB, RAK dont pay. Sure they dont do anything. If u have card from Masheq take care they are very dangerous and sure they claim 36000 for 6000 unpaid credit. FGB and Dubai First also dangerous too.
CITI Bank is cheaters. Try to cheat them too never pay them back.
If the bank files case in Dubai, dont worry if the cheque amount is less than 25,000 u get a fine for 2000 dhs and u can clear entire amount with that 2000. But if it goes more than that and upto 50000 then u may get a jail term of 23 days. But if it is more than 50,000 may get a jail term upto 46 days.
I am advicing from my own experience.
Dont worry and be happy not to pay
Joycee // June 14, 2010 at 1:31 pm |
Hi.
I am terrified with RBS harassment. I couldn’t help but cry every time they call me (everyday) i have only small amount of outstanding balance. but in 2 consecutive months i am paying below minimum like short of 100plus. but every pay day i always pay for my rbs credit cards. now they are insisting me to pay the 300 dirhams 300 dirhams. but i think they will kill me for that. they are my nightmares.
Please give me your advise, im not planning to answer their calls. Its not calls, its harrssments and it really makes my life miserable.
Cyra Miles // June 15, 2010 at 3:53 pm
@ Joycee: I wish I can help you but I really do not have any idea on how the RBS works… I knew from other friends that some banks can be really very rude..
Shani // May 31, 2010 at 10:41 am |
What if you have credit cards without having given any security cheques to the issuing bank? What would happen then?
Cyra Miles // June 1, 2010 at 3:24 am |
@ Shani: As far as I know, there is no security cheques for credit cards however it is better if you check it with your bank.
nabeel // June 16, 2010 at 12:30 pm |
I have an account with hsbc bank,n my salary also gets trsnsferred in this account.took a loan , overdraft n credit card so they deduct the respective amts every month but the problem is that off late I am not able to pay the amt so asked for settlement which would be 11.5% on the net amt for 3 yrs can u suggest if they would reduce this interest rate and i also want to ask u whether i can operate my account like issuing of cheques etc…plz assist i really need help as soon as possible
Rosana // June 19, 2010 at 1:22 pm |
Thank you for this article…
I am now facing almost the same problem
I have a personal loan from NBD, I lost my job about 1 year ago due to the recession and I didn’t run away like many people did, I am still in Dubai and trying my best to find a job to pay my loan but unfortunately till noa I couldn’t find any job… the bank of course are calling me all the time sometimes I answer sometimes I ignore them because as you all mentioned they are harrasing and very rude… unfortunately I have no money to pay the loan and I of course can not go back home… the bank now has filed a case against me and the police called me last week, I am terrified and scared of what will happen to me… i urge you all to help me and advise me what can I do (I am a decent person and can’t handle this I will may be die if something happen to me) I also have no one to guarantee me in this…. plz plz reply to me ….. Many Thanks & God bless you all
beth // June 22, 2010 at 8:19 am |
Hi,
Nice site.. same as many unfortunate people who are trapped with this crazy bank policy and harrasments, i my self is a victim.
I tried many options and read as much, even listen to other people, wating for news to come hoping somehow that a solution to this will suddenly come.. but till now nothing.
I just learned to make myself accept whatever happens to me later .. try to live and make use of my time accepting my mistakes and praying that if ever I will be given a chance, I will never ever repeat this mistake in my life again, I will try to live by my means and try to live in peace and be contented to what I can earn only not to dream again for something which will not last.
Rosana … if you like somebody to talk to just email me … tsinitabeth@yahoo.com .. dont just quit ..remember all will pass whatever you did before you cannot bring it back to correct it. But the future you can still plan, if you have to face something you have to accept it with courage but not thru giving up but to find alternative in what ur good at use this to survive ..then solutions will slowly come.. be positive like me even thru the worst we must strive and fight.
secret nlng po // July 22, 2010 at 8:12 am |
I would like to ask some help in your behalf.
We have a big amount of credit here in Abu Dhabi. It’s that just happened that we are trying to invest in Philippines and suddenly they lied to us. And we lost the money that we borrowed from the bank, no body wants these to happen but it’s done. And we cannot do anything about this now the banks are forcing us to pay I knew that these is our faults. But as I’ve said it’s already done.
We want to pay of course but the problem is since we came from vacation June 2009 we got too much negative with the salary of my husband, we are trying our best and we never plan to run away for our credit.
Please try to understand we want to pay in anyhow, we sell all of our things just to pay them and I get job but very small salary. We want to pay but please understand that we are trying to do so, but I’m really scared that they will put my husband in the jail I have my daughter here and she is going to school and nobody working aside to my husband. We are begging you please help us we really don’t mean this to happen we are staying here for 6 year and we got nothing until now because we are helping our family we are just as poor people, we are not a businessman or a known people.
Please don’t ignore this I don’t like my husband to be in jail let my husband work. I don’t like my baby to stop in school please help her to pursue her studies.
My husband goes back to our country. And we stuck with bad debt for credit cards and loan. My current salary is not enough to pay our dues. Now, we really stuck in here…the banks are always threatening us, and we really stresses and frightened, so we usually ignore their calls , because they are not going to listen on you. What they wanted is just produce the money that they need on which way you could. It’s really affecting me…
It has come to the point where in I couldn’t sleep… And it affects my job. After months of stress from the bank, I started to feel numb. I have prepared myself for the worst. Ending up into jail… I just need to know if my husband will be in jail, and sentence the terms decided by the court will the debt be cleared.
Please let me know, if he served the prison for my husband’s case for bad debt will it be waived off? And we will be deported after the jailed terms?
I am willing to do these in behalf of my husband because I’m afraid that until now they threatening my in-laws in the Philippines. My father in-law has a heart problem so I’m really scared what could possibly happen to them. And also until now we don’t know where is my husband is. Were already worried about him please help what we can we do about these.
Please I hope that you will not ignore this. And I am really appreciating if you would reply to my letter.
excel
Cyra Miles // July 27, 2010 at 3:49 am |
Hi Excel,
Sorry to hear about your predicament. I recommend that you visit the recovery department of HSBC and seek for their assistance regarding your situation.
Regards
C
Randy // July 24, 2010 at 7:44 pm |
Very interesting and informative site. Not to mention I found some inner peace from reading all this enlightening stories which makes me feel I am not alone. I myself fell into that trap called Credit Cards. Well its true the mistake has been done now its time to find a solution to end this miserable predicament. I think all of us agree with Beth …If only we can turn back the hands of time nobody will ever get a credit card again. We should always live within our means and Trust God for direction in every decision we make. God Bless you all !!!!
Randy // July 24, 2010 at 7:46 pm |
Very interesting and informative site. Not to mention I found some inner peace from reading all this enlightening stories which makes me feel I am not alone. I myself fell into that trap called Credit Cards. Well its true the mistake has been done now its time to find a solution to end this miserable predicament. I think all of us agree with Beth …If only we can turn back the hands of time nobody will ever get a credit card again. We should always live within our means and Trust God for direction in every decision we make. God Bless you all !!!! More power to you Cyra your comments gives so much inspiration!!!
Peter San Jose // July 27, 2010 at 10:22 am |
I have the same problem. Credit cards and salary loan with Mashreq bank. I have a 30k on my hand now to pay for partial settlement and i will pay them monthly on my salary. But they refuse, what they want is 40k + guarantor or 70k all clear. I dont know what to do, bcoz i sell my house in Phils to get this money and pay them. But what i get is another burden, they give hard time.
Rosana // July 27, 2010 at 3:05 pm |
Beth, Thank you so much for your support
Unfortunately I am still not able to solve my problem…
my email is: rosa.ward@hotmail.com
Thank you all for sharing your stories so I am not the only person who is facing this.
Rosana
ahmad // July 27, 2010 at 6:09 pm |
I have a loan in Dubai. Got a good job offer back home which I dont want to miss it. Can I pay my loan from back home???
Fil // July 28, 2010 at 8:04 am |
I have read every bit of it and this was actually what’s happening with me now. My services with my company in Dubai was terminated because of the recession. I visited Mashreq few days after receiving the termination notice. I was advised to submit all documents needed for insurance claim, which I readily did upon receiving my visa cancellation. I went back to my country and a year later was informed that the insurance company did not cover my obligations with the bank. I was so shocked upon learning this as I was religiously paying the credit shield. And now the collection agency in the Philippines is bugging me with their demand letters and sms that I find abusive and offensive. I am planning to settle this with the bank after I get a job coz I have been without a job for a year already. Is it much easier to deal with the bank directly? I find it hard to deal with their collection agent in the Philippines as I am getting different information from them. Thank you.