Q: I lost my job a year ago and I have an outstanding credit card of AED 300k… A: I think from what I have seen before you can negotiate with the bank and get…

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Negotiating credit card outstandings with the bank

Hi, I lost my job a year ago and I have an outstanding credit card of AED 300k. I've missed the last 9 monthly payments (I am negotiating directly with the bank). I am willing to settle the credit card with one lump sum payment that a friend will lend me.

How much discount on the balance of AED 300k can I negotiate to settle the matter? Should I also ask for a clearance/ no liability letter?

Alaa Momtaz

Hadef & Partners LLC

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24 May 2017, 11:23

I think from what I have seen before you can negotiate with the bank and get a discount for all charges, interest, fines etc. However, the bank will never go one dirham less than the original debt.

And yes of course, if you reach an agreement with the bank, you need to sign some sort of a letter that confirms that the 300K is now x amount and this shall be considered as the final amount and the letter shall be deemed as a clearance letter.

25 May 2017, 05:34

Thank you for your answer.

After going through my credit card statements, I found out that the original debt on the credit card (i.e. cash advance and payments made using the credit card during the last 5 years) has been fully paid back to the bank (i.e. if you add the sum of monthly payments made to card, it turns out to be 10% higher than the original debt). The AED 300k is then purely interest, charges and late fines.

Do you think they can waive it all considering my current situation? Or how much can they discount?

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