There is a common misconception, even among debt experts, that Dubai banks don’t have a legal right to collect debts in other countries. Unfortunately this is just not true.
Thanks to the credit agreement the debtor signed in the UAE, it is relatively easy for the banks to acquire jurisdiction in the debt victim’s home country and go after any assets or savings. The UK in particular has enabled this process further by signing a unilateral credit enforcement agreement with the UAE.
UK debt reclamation is often seen as a last resort by UAE banks because of the expense involved, and the uncertainty of how much they will retrieve. But threats of UK debt collection should be taken seriously by anyone who has built up savings or assets after leaving the UAE. Even if the debt victim has no savings or assets, care should be taken to avoid negative legal consequences
Radha Stirling, CEO of Detained in Dubai explains: “UAE banks use UK firms like Coyle White Devine (CWD) and International Debt Recovery World Wide (IDR/IDRWW) to chase debt victims who have made it to safety in the UK. These firms need to be taken seriously as they are efficient and ruthless.
“Ignoring UK debt firms is a bad idea as it allows them to obtain judgements in absentia, or collect debt by statutory demand (in which case the victim’s silence is accepted as accepting the debt by UK county courts).
“On the other hand, unless the debtor has a firm grasp of debt enforcement law and the legal process surrounding it, it is very easy for them to harm their best interests by dealing with IDR or CWD directly. Saying or doing the wrong thing can be costly.
“Ideally people should retain professionals to handle communications with the debt collectors, in order to protect their best interests.”
“If you are being harassed by Dubai banks or their agents abroad or in the UK, get in touch with us at Detained in Dubai, or another, similar organisation for help.”