Credit Card Cases in Dubai , Sharjah and other Emirates

6 Smart Strategies to Eliminate Your Debt
  1. Target just one credit card first. ...
  2. Ask your creditors for lower interest rates. ...
  3. Transfer your balance (cautiously). ...
  4. Use a peer-to-peer lender. ...
  5. If you're really strapped, make two minimum payments each month.
  6. Choose the best Lawyer to handle the issue.

credit card debt write-off does not wipe out your liability for or obligation to pay that debt. It is simply a mechanism used by credit card companies to get bad debts off their books. As a result, debt collectors can still call or sue you to collect the debt even after it is written off.

The governing laws on Credit card issues differ from each Emirates.

When you avail a personal loan or apply for a credit card in the UAE, the concerned bank will make you sign a blank cheque towards security deposit. In many countries around the world, issuance of dud cheques as well as defaulting on a bank loan or credit card dues are categorized under civil and commercial offences. Hence, criminal courts are not involved in the matter.

However, the legislative approach to the issue of bounced cheques in the UAE is very different than most other advanced countries. Article 401 of the UAE Penal Code says that an individual who issues a cheque with insufficient balance – causing the same to bounce – can face imprisonment of one month to three years, or a fine of a minimum of AED 1,000.

As such, in accordance with the UAE Penal Code, issuance of a bounced cheque is deemed a punishable criminal act. So, one would be signing his own prison sentence if he knowingly or unknowingly issues a signed cheque, which he cannot honor. Furthermore, he would be nurturing a mistaken notion if he believes that he would be out of prison after serving the jail term for this lapse on his part because until his debt is cleared he may continue to languish in jail.

Though a bounced cheque normally entails a minimum of one month to a maximum of three years in jail as per the UAE laws, the actual reality is far from it because a debtor won’t be set free from his financial liabilities even after he has done his jail term. There are many cases where expatriates who were jailed for issuing dud cheques are still languishing in the local jails even after completing the prescribed prison term, solely because their debts have not been cleared yet.

Here one should remember that a bank collects a signed cheque as security deposit at the time of issuing a credit card or a loan purely in a bid to put pressure on the loanee in case he defaults on repayment of loan or credit card dues.

Source: Money Gulf

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