How can I reach a settlement with the bank for a loan to lift travel ban and get a new visa?

Normally, when a travel ban is imposed, there will be some complications in completing the process of your visa application.

It will be better if you seek an exception with the court to lift the ban for the process of your visa.

We will let you know the possibilities in detail. Kindly share your WhatsApp number to discuss this further.

Dear S.,

Thank you for reaching out with your concerns.

Based on the details you’ve provided regarding your financial situation, the travel ban, and your intention to resolve the outstanding debt, here is a general overview of the challenges you may face and the steps you can take to address the matter:

Challenges You May Face:

Travel Ban:

As you have received an email regarding a travel ban from the Financial Remediation Team, it is a common consequence when there are unpaid debts, especially if the bank or creditor has reported this issue to the authorities.

The travel ban prevents you from leaving the UAE until the debt matter is resolved or a settlement arrangement is made. This ban can delay the processing of your new visa and any travel plans.

Visa and Employment:

If the travel ban is still in place, it may impact the processing of your new employment visa, as some authorities may be reluctant to proceed with visa issuance when a travel ban is active.

Additionally, employers may raise concerns about your legal status due to the travel ban and pending debt.

Debt Collection:

If the bank or creditor sees no progress in repayment, they may pursue legal action to recover the outstanding debt, including pursuing civil litigation.

While criminal action for unpaid debts is rare unless fraud is involved, banks often seek civil remedies or file cases for debt recovery.

Credit History:

The travel ban and unpaid debt may significantly affect your credit history, making it more difficult for you to obtain loans, credit cards, or even housing in the future. It can also damage your financial reputation.

Possible Solutions:

Negotiation with the Bank:

I recommend immediately approaching the bank or financial institution to discuss the outstanding debt. It’s important to demonstrate your commitment to repaying the loan and credit card dues.

You can request a restructuring of the debt or set up a payment plan that is manageable based on your current financial situation. Many banks are open to negotiating terms for debt repayment if the debtor shows clear intent to settle the outstanding balance.

Request to Remove the Travel Ban:

After you have arranged a repayment plan with the bank, you should formally request the removal of the travel ban. In some cases, if you can show evidence of a commitment to repay and begin making payments, the bank may work with the authorities to lift the travel ban. The bank will need to be convinced that you are in good faith and have a viable repayment strategy.

Debt Settlement Options:

If your financial situation requires a reduction in the outstanding debt, you may consider seeking a debt settlement where the bank agrees to reduce the debt amount in exchange for a lump sum payment. This is typically possible if you have a lump sum available or can negotiate with the bank.

Legal Assistance:

If you continue to face resistance from the bank or encounter difficulties in resolving the issue, we can engage in legal actions such as formal mediation with the Financial Remediation Committee or filing a formal request to the relevant authorities to lift the travel ban. In some cases, legal intervention may expedite the resolution.

Documentation:

Ensure that you maintain all communication with the bank in writing, including any agreements, payment plans, or settlement offers. This documentation will be crucial in case of any disputes and to show your commitment to resolving the issue.

We understand that this situation can be stressful, but the good news is that there are steps you can take to resolve both the financial debt and the travel ban.

The key is to show proactive steps towards repaying the debt and working with the bank to find a solution that allows for both financial settlement and removal of the travel ban. I recommend contacting the bank immediately to start negotiations and documenting all correspondence.

If you need further assistance in negotiating with the bank or navigating the legal process, please do not hesitate to reach out.

Best regards,

Mohammed Salah

Legal Consultant

Hello,

A travel ban will prevent you from leaving the UAE until the debt is settled or you have made an agreement with the bank or creditor.

This could impact any future job opportunities or personal plans, especially if you need to travel for work.

Since your intention is clear to settle the outstanding debt, you should contact the bank and ask for a settlement agreement or a restructured repayment plan that suits your new income.

If you reach an agreement with the bank and start paying the debt according to the agreed plan, you can request the bank to remove the travel ban.