Questions & Answers
The issue with credit shield insurance
HI,
I was recently terminated from my work on May 1, 2017. I have a credit card with outstanding dues with FGB. On May 10th, I had applied for the credit shield with the bank.
On application, they informed me that it would take 40-60 days to get credit shield approved. But it has been 4 months and it's still not approved.
The bank is repeatedly calling me for the minimum payment, which I am not able to do since I haven't received any new job offer. I visited the bank collection department and the credit shield insurance company with no proper reply from any.
The bank has now issued a legal notice and I do not have any proper reply from anyone with regard to the credit shield. I have been giving interviews and it's only a matter of a couple of weeks before which I might be employed again.
My question is, can the bank register case against me when the credit shield application is pending?
Also, will the case affect my legal status when new employer applies for new employment visa?
Thanks.
To answer your questions:
- Yes, the bank can register a case against you for the due amounts.
- Yes, the case may affect your employment as if you have a travel ban, the Immigration Department may refuse to issue a residency permit for you before you close the pending case.
I would suggest you to get in touch with the Central Bank of the UAE with a formal complaint against the Credit Shield Insurance Company. Before you do that you should get a copy of the terms and conditions of the credit card and the credit shield application/contract and consult a legal adviser.
If you may need help with the same please contact me on aelnaggar@lkmbgroup.com
Best regards,
Ahmed Elnaggar
