Can a collection agency file a case against a debtor in home country on behlaf of a UAE bank?

Dear Client,

Thanks for your question! I hope you are doing well. I will assist you in this matter.

In the UAE, if your friend is unable to repay a personal loan due to job loss, debt collection agencies can pursue legal action, including filing a case in court.

However, they cannot arrest him or file a case in his home country solely for non-payment of debt.

If the debt collectors are harassing him with threats of criminal charges or jail, he can file a complaint against them for their abusive behavior under UAE law.

It is important for him to document all communications and seek legal counsel to understand his rights and options. Consulting with us to navigate this situation effectively.

For any further discussion, you can WhatsApp us. We have an extensive team of knowledgeable and experienced lawyers to provide the legal assistance you need.

We will be happy to help you.

Thanks & Regards,

ABDUL WAHIED

Thank you for reaching out with your inquiry regarding debt collection practices under UAE law. I understand the distress your friend is experiencing, and I would be happy to assist with clarifying the legal aspects and possible remedies.

In the UAE, if an individual defaults on loan payments, the bank or creditor may escalate the matter legally.

This could include filing a civil case or, in some instances, a criminal case (if a security cheque was issued and dishonored). However, the specific actions depend on the terms of the loan agreement and the approach of the creditor.

Regarding the debt collection agency's behavior, UAE laws prohibit harassment or abusive practices by debt collectors.

If their conduct involves threats or other forms of unlawful intimidation, it may be possible to file a complaint against them.

Such complaints can be raised with the relevant authorities, such as the police or the UAE Central Bank, which oversees financial institutions and their agents.

To assess the situation fully and explore potential solutions, including strategies to negotiate with the creditor or address any potential legal risks, I recommend discussing the matter in detail.

Please feel free to reach out to me via WhatsApp, phone, or email.

I look forward to assisting you further.

Best regards,

Suhail Rana

Yes, they can file cases both in the home country and in the UAE.

No, you can not make a case against the debt collection agency.

Dear Hasan,

Good morning.

Under UAE law, the situation described involves both legal and procedural considerations:

1. Debt Collection Agency Actions:

- Debt collection agencies can escalate matters to the UAE courts if payments are not made. This may result in a civil or criminal case, particularly if the loan was secured by a cheque, which is considered a criminal offense if it bounces.

- However, their conduct must adhere to ethical and lawful practices. Threats and harassment are not permitted and can be reported to the relevant authorities.

2. Legal Action Against the Borrower:

- If a case is filed in UAE, the court may issue an arrest warrant if the borrower fails to respond or settle the dues. However, enforcement of such warrants is limited to the UAE unless international legal agreements apply.

3. Actions Against Debt Collection Agency:

- The borrower can report the agency’s behavior to the **UAE Central Bank**, which regulates financial institutions and their agents if the harassment is excessive or unlawful.

- A legal case for defamation or harassment could also be considered if evidence supports such claims.

We are ready to assist in resolving this matter legally, negotiating with the bank, and filing complaints against unethical debt collection practices.

For further assistance, feel free to contact us.

UAE law generally does not allow direct enforcement of judgments in foreign countries. They have to go through several procedures in order to enforce such judgment in their home country.

Issuing an international arrest warrant for a debt is highly unlikely in this situation. Arrest warrants are typically issued for serious criminal offenses, not civil debts.

If the debt collection agency is engaging in harassment or making threats that are illegal in your friend's home country, they may be liable.

Your friend may be able to file a complaint against the debt collection agency with the relevant authorities in their home country.

If you need further clarification kindly share your WhatsApp number. We will discuss more.

If someone is unable to repay a loan due to job loss, a debt collection agency cannot file a criminal case or issue an arrest warrant in the person's home country if they are outside the UAE.

Regarding the threats from the debt collection agency, you can file a complaint against them for their excessive and unlawful behavior.

The bank or debt collection agency can file a civil or criminal case (if there is a bounced cheque) against the borrower in the UAE.

Arrest Warrant: If a judgment has been issued in a criminal case, an arrest warrant may be issued in the UAE only, and not in the borrower’s country unless there are extradition agreements between the UAE and his country.

Certainly, the complaint can be documented, and the appropriate legal actions can be taken to protect your rights. If there is harassment or a violation of privacy by the collection company, a criminal report can be filed accusing them of harassment and violation of privacy, ensuring that all illegal actions or threats you have encountered are documented.

As for the financial claim, you can regularly follow up on the status of any lawsuits or enforcement actions filed against your friend, either through periodic inquiries in the courts or through the concerned banks.

If there is an enforcement action related to a guaranteed check, you can present a legal defense against the bank by objecting to the enforcement file and correcting any procedural errors.