Questions & Answers
Can a debt recovery agency in home country legally force repayment of a loan owed in the UAE?
Hello,
My friend took a loan of 100,000 Dirhams from a finance company in the UAE and repaid almost half through installments. However, after losing his job, he was unable to continue payments.
The finance company then deposited his guarantee cheque, which bounced. This happened three years ago. Recently, the finance company has engaged a debt recovery agency in Pakistan to recover the remaining amount.
My question is: Does the debt recovery agency in Pakistan have the legal authority to force my friend to repay the debt?
Dear Client,
Thanks for your question! I hope you are doing well. I will assist you in this matter.
The debt recovery agency in Pakistan likely lacks legal authority to force repayment of a UAE debt. The loan, subject to UAE laws, has a 15-year limitation period.
Cross-border debt collection is complex and requires proper legal channels. While the agency can't legally enforce payment in Pakistan, the debt remains valid in the UAE.
Your friend could face consequences if he returned to the UAE due to the bounced cheque and unpaid debt. The finance company may still pursue legal action in the UAE.
Your friend should seek legal advice from a professional familiar with both UAE and Pakistani law, consider negotiating with the finance company directly, and be cautious about engaging with the debt recovery agency without verifying their authority.
You can contact us via WhatsApp for further clarification or additional support. We are dedicated to providing professional, timely, and comprehensive assistance tailored to your situation.
Thank you!
ABDUL WAHIED
The debt recovery agency in Pakistan likely does not have the legal authority to directly force your friend to repay the debt.
While the finance company can try to pursue the debt internationally, this usually involves a complex legal process.
They would likely need to work with lawyers in Pakistan to have the UAE judgment recognized and enforced there. This is not a simple or guaranteed process.
If you need further clarification, you may ask us.
Greetings of the day,
A debt recovery agency in Pakistan can contact your friend and request payment, but they do not have the legal authority to force repayment or take legal action unless the creditor files a case in a Pakistani court to enforce the UAE debt.
Since the loan originated in the UAE, any legal action would typically need to be pursued there first. However, if the finance company obtained a judgment in the UAE, they may attempt to enforce it internationally through legal channels.
Your friend should check if there are any active cases in the UAE, such as a civil execution case or an Interpol notice related to the bounced cheque.
If the debt collection agency is using harassment or threats, he can file a complaint with local authorities. It may be best for him to negotiate a settlement or a payment plan directly with the finance company rather than dealing with third-party collectors.
Best Regards,
Sara Al Saedi Advocates and Legal Consultants
Wishing you a pleasant day ahead,
The debt recovery agency in Pakistan can contact your friend, but it does not have the legal authority to force repayment.
The finance company would need to seek legal action in Pakistan through the courts if they wish to enforce the debt there.
According to UAE law, debt collection agencies abroad do not have the legal authority to force someone to repay a debt within the UAE.
The finance company can attempt to recover the debt through local legal channels only. However, the agency may work with a local lawyer to pursue the case in the UAE.
For legal assistance and WhatsApp contact, feel free to reach out to us, as we specialize in such cases.
