Nice to see this blog. I want to ask, I have already settled my bank dues in Dubai Bank and they have issued a clearance letter already. Should I still need to go to the police station in Dubai and present this letter? I was detained there for 4 days last 2010 because of this case, then I got out after my husband paid an initial amount and we paid the remaining for 1 year monthly installment until November 2011. The Dubai Bank recovery agent who gave the clearance letter to us said that my case is cleared, but I could see that he’s not sure. So do you think I still need to go to the police station? Also, how can I check if I have other police case filed against me? I still have other bank dues to settle, right now I am paying FGB thru settlement.
Hope you can help me. Thank you so much and may God bless you.

Appreciate your response..,

Relax – you did the right thing by leaving UAE.

I am in a similar position and have debts over 2million in cards and loans.

I left the country 10 months back.
Expect calls from the bank in the initial 2-3 months period and then from the recovery agents following that.
Some recover agents will even make a visit to your residence.

Here is what you must do:

1. First of all relax – the worst is over. You have left UAE and there is no law in India that can prosecute you for your debts in UAE.

2. Do not believe anyone who says that you will be reported to Interpol. Trust me Interpol is very busy with much more important matters than chase 100s and 1000s of people down for debts with the banks. Banks make a killing on interest and charges, so please do feel guilty.

3. If possible change your local contact number and address. If you cant change it then atleast you should not reside in the same city, which has been listed in your passport or at the address with the bank. Chose a different city or even a different country (not GCC) and start your new life.

4. If you family resides at the address which is recorded with the bank – give them specific instructions that they should simply say that they are not aware of your whereabouts. Remember to not feel threatened or intimidated by the calls from the banks or collection agents. Your family simple must continue to say that they do not know where you are and are not concerned with your whereabouts. Do not get into a conversation with them. Just maintain the tone and hangup the phone.

5. If any recovery agents visit your residence – PLEASE DO NOT FEEL SCARED.
they have no authority to do anything. Worst case is that they will try to intimidate you by giving you or your family all kind of threats and stories. First thing is that you should not face them. Let the family meet them at the door and maintain the same response that they are not aware of your whereabouts and have no concern. Feel bold and confident and tell them to go and do whatever case they want to file. TRUST ME, THEY CAN NOT FILE ANY CASE.
The fine print in all loan and credit card applications clearly states that the jurisdiction for all disputes is in UAE courts only.
There is no INTER-DEBT law between UAE and India.

6. Chose to communicate with banks and recovery agents only through emails. Even for that purpose, it is best to maintain total silence for the first 6-10 months. Simply file all their emails in a separate folder. Do not reply back.

7. This is the time period for you to concentrate on settling down and getting your life back in order. Try to be focused and save money aside for the time when you are ready to settle with the banks.

8. Once you are ready, then reply back to any of the last emails received from the collection agent or bank. Ask them what is the best offer for settlement.
Do not fall for their terms or threats.
simple chose to dictate your own offer and stick by it.
They will ask you for your address and phone number so that they can discuss with you. DO NOT GIVE ANY DETAILS.
Tell them that email is the best way to communicate.

9. Finally make them your offer. If you are offering a one shot clearance payment – go with the rule of 15% of the principal amount of the credit card and 35% of the principal amount for the due loan amount.

10. Obviously your offer will not be accepted in the first try. Maintain your offer and continue to inform them that you do not have the funds to offer anything better.

11. Be prepared to negotiate and give extra offer of 5% more after a few tries and make that your last offer. TRUST ME, most banks will accept eventually.
Dont be in a hurry. If they dont accept, leave it. They will contact you back after few days.
Negotiating with banks and recovery agents is a WAIT and SEE game and should be played with patience.

12. IMPORTANT = Insist that the bank should send you an original letter of settlement which states your defaulting account number, your name with passport details, total outstanding and the final agreed settlement amount.
The letter should clearly state that on payment of the agreed settlement amount, the bank will issue NOC and withdraw any police cases and clear your name with the Central Bank.
This is a very important step. Ask the bank to send you the letter in original to a post box in UAE, which may belong to your friend. Your friend can then send the letter to you. DO NOT GIVE YOUR CONTACT DETAILS.
Also demand for the letter in original and before you make any payment.

13. Even if you have agreed to a settlement through a recovery agent – DO NOT PAY THE MONEY TO THE AGENT. Pay the money through your friends and relatives directly to the bank to the account number mentioned on the letter.
Keep all receipts and records of all the correspondance.

14. Once the payment is done, request the bank for the clearance NOC letter. Which they will issue within 3-5 days.

15. Once you have the letter, submit the same to the police station and check if they have cleared your name from the police record.

16. You are now FREE to enter in UAE and continue your life where you left.

All the above are thoroughly researched and personally experienced by me.
I am now at the final stages of clearing my debts and hope to return back to UAE shortly.

The key is NOT to get intimidated or threatened by them.

I wish everyone good luck and Pray to Almighty Allah that he helps us all to resolve all these troubling issues as soon as possible.

Regards

Kay

Appreciating your kind response.

Regards,

Bhuvanesh Babu

Absolutely nice blog…!

I have similar case as everybody else posted here..I have personal Loan and Car loan with Mashreq Bank… I was a victim of economic downfall in 2009 and came back to my home country .. I was in touch base with them until last year when recovery guys started behaving rude.. However, I learnt there’s a police case filed on me.. Kindly suggest what is the procedure to get out of this consequences with a “CLEAN CHIT” …Do i hire a lawyer or negotiate with the bank….

Reply awaits…