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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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Bank Loan in Dubai.

Customer Question

, I worked in Dubai years and came back to the UK Jan 2013. I left a bank loan in Dubai and my final salary cheque approx AED170,000/GBP30,000 was deposited in my Dubai bank account and has serviced the loan past year. However it has now run out! The bank has contacted me and I have asked to restructure the loan which is half way through its 4 yr term to an amount that I can afford as my financial circumstances have changed and I am not benefitting from a tax free salary in the UK. I do want to honour the loan and pay it back but on new terms. The person I have been speaking to has said they cannot restructure the loan and I need to make a payment of AED30,000 immediately. When you take a loan out in Dubai they ask you to provide a blank signed cheque, this is because if you default on the loan they present it and of course it bounces which is a criminal offence, if you are in the country they then arrest you, if you are out of the country I am not sure what they do which is the reason question and advise please? as although I am speaking with them they may still present the cheque whilst we try and reach an agreement on a payment plan till I can settle the whole amount. I have heard they can notify Interpol as they see you as a criminal and I do not want anything like that as I am employed by a large Technology company and that wont be acceptable. Apprecoiate your advice please? thank you John

Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Alex Watts :

my name is ***** ***** I will help you with this.

Alex Watts :

please let me know whether you have admitted to the loan?

Alex Watts :

Also just to clarify it was signed agreed in Dubai?

JACUSTOMER-5ri35si0- :

Alex, Thank you.

JACUSTOMER-5ri35si0- :

When you say admitted to the loan the answer is yes as I am the account holder and I have spoken with there collections dept.

JACUSTOMER-5ri35si0- :

Yes the Bank Loan was signed Dubai.

JACUSTOMER-5ri35si0- :

and agreed in Dubai with ADCB Bank, thats Abu Dhabi Commercial Bank.

Alex Watts :

Ok, well its certainly not illegal to have debt in the UK. You can't be arrested hear.

Alex Watts :

In any event debts in Dubai cant be enforced in the UK

Alex Watts :

In the UK there are Acts of Parliament that govern debts and various conventions.

Alex Watts :

The UAE is not a part of these treaties or Act's of Parliament

Alex Watts :

Therefore any debt in the jurisdiction of Dubai can't be enforced in the UK

Alex Watts :

They can't even issue proceedings in the UK

Alex Watts :

So the fact you are being bulled makes no difference.

Alex Watts :

You can simply write back and say, the debt is within the jurisidction of Dubai, it cant be enforced in the UK, there are no proceedings in the UK and you are only prepared to offer £x a month.

Alex Watts :

That is it.

Alex Watts :

They can take it or leave it

Alex Watts :

They can't touch you in the UK

Alex Watts :

Can I clarify anything about this today please?

JACUSTOMER-5ri35si0- :

Thanks Alex, okay thats good in as much as you are saying I can offer them a monthly amount and they cannot touch me in the UK. However they will view me as an absconder in UAE and view me as a criminal, so I will not be able to return ever or until the loan is paid in full. The thing I am most worried about is this interpol thing that I read on the internet! please see this link http://www.theguardian.com/law/2014/may/22/britons-jailed-losing-jobs-bounced-cheques-sharia-law-interpol-arrests

Alex Watts :

Yes, but you should not issue a cheque that bounces.

Alex Watts :

This is a civil debt. It cant be enforced in the UK.

JACUSTOMER-5ri35si0- :

The other point to make is that I have not yet defaulted on the loan as my final salary has been paying the loan, now thats ended or all been utilised even if I pay them a reduced amount as that is what I can afford they will likely put the blank signed cheque in knowing it will bounce and then pursue me.

Alex Watts :

Therefore you should only negotiate from the UK

Alex Watts :

Does that help?

JACUSTOMER-5ri35si0- :

When I took out the loan in 2012 they make a UAE bank makes you right a blank cheque, if you then default on the loan they present the cheque in the knowledge it bounces which is a criminal offence in Dubai, then if you are in the country they bang you up in jail! I am not in the country as I said but worried about what rights they have to call me a criminal under there law and then what that means if I then travel abroad, which I do job.

Alex Watts :

They cant pursue you here. If you can cancel the cheque. If you cant then this is fraud on their behalf. They present the cheque knowing it will bounce. You did not authorise the attempted payment so I can't see how that can be criminal.

JACUSTOMER-5ri35si0- :

Oh yes I am not going back to Dubai and firmly in the UK, but if I just pay them lets say 50% of the normal monthly payment I need to know what rights they have. Can you check the law on this please? also my brother lives in Dubai but he has nothing to do with it so sure there is no liability.

Alex Watts :

They have no rights in the UK on you.

Alex Watts :

As liability in Dubai I cant say as I am a lawyer in the UK

Alex Watts :

This is a civil matter as far as the UK are concerned

JACUSTOMER-5ri35si0- :

Ok so I am ok in the UK Just cant go back to Dubai. When you say a civil matter as far as UK are concerned please clarify what that means?

Alex Watts :

That means it is not a criminal matter in the UK, its a civil debt matter.

Alex Watts :

The loan was in UAE, it can't be enforced here

Alex Watts :

Does that help?

JACUSTOMER-5ri35si0- :

ok so as long as I am doing my best to pay the loan off I am within my rights and cannot face any criminal charges? sorry over clarification but I just want to know exactly what my rights are? some good lessons learnt regarding living in the middle east!!

Alex Watts :

Yes indeed. But I wouldnt go back to Dubai though!

JACUSTOMER-5ri35si0- :

No no plans ever again, they have some very weird laws and rules which I do not agree with. thanks and that answers my question thank you chat. all the best

Alex Watts :

Indeed. If I could ask you to rate my answer before you go today, the button should be at the bottom of the screen

Alex Watts :

If you need more help please click reply

JACUSTOMER-5ri35si0- :

thanks will do Alex.

Ash and 3 other Law Specialists are ready to help you
Customer: replied 2 years ago.

Alex, Can you just cast your eyes over this response I have put together and let me know if there is anything else i should add?

Dear Henan,

Without Prejudice:

I have spoken with my UK lawyer. Whilst I have every intention of paying the loan back as I requested I need to restructure due to the change in my financial circumstances. The Loan is within the jurisdiction of UAE and it cannot be enforced in the UK, therefore I am offering a monthly payment AED1,700.00 until I am able to clear the full amount.

Please confirm acceptance of this offer and I will send across the first instalment as per your instructions.

Kind regards
John

Best regards

John

Expert:  Ash replied 2 years ago.
Yes that is fine.
Alex
Customer: replied 2 years ago.

Alex,

The bank in Dubai/Abu dhabi sent me the agreement that I signed, is it worth sending you a copy to read and pass comment? I know it is not enforceable here but be interested in your views?

I sent them the email proposing a reduced payment of AED1,700/£308 per month and sent the payment, however that did not go down well and they are calling all the time, I am picking up the call and I am just re iterating what the email said and told them I want to restructure to a lower monthly payment.

My concern now is they put the cheque in and then say I am a criminal in UAE when I am making every effort to agree a new payment plan. Is there anything I can do to anticipate the inevitable of them putting a cheque in that bounces by saying something to them allong the lines off - I am trying to reach agreement with you however if you put a cheque in with the objective of making it bounce when you know there is no money in the account is under oour law fraudulant?

Kind regards

John

Expert:  Ash replied 2 years ago.
I can. This is an additional service so let me try that.
Alex
Customer: replied 2 years ago.

Alex, understand and will get the funds and respond shortly. thanks John

Expert:  Ash replied 2 years ago.
Great, thank you.
Alex
Customer: replied 2 years ago.

Alex, ok can pay the cost now please advise how I do that and attach the agreement and I have found a number of emails that I sent the bank when I left Dubai to inform them etc and got in most cases no reply.

Thanks

John

Customer: replied 2 years ago.

Alex, Let me know when I can send over the agreement and how much additional service?

Thanks

John

Expert:  Ash replied 2 years ago.

I will send over the offer service now.
Alex
Customer: replied 2 years ago.

Alex,

agreement attached. Need confirmation that they cannot enforce this in UK.

Agreement attached.

I have all the emails sent to the bank informing them I left Dubai in Jan 2013. Also my residents visa will have been cancelled by my employer in Jan 2013 and all banks and authroities are notified of that. Let me know if you need the emails?

Attachment: 2015-01-29_092638_adcb_copy.pdf

Hopefull that has been attached.

Kind regards

John

Expert:  Ash replied 2 years ago.
Yes the law is UAE. It can't be enforced in the UK.
Alex
Expert:  Ash replied 2 years ago.
Just to clarify I examined the whole document and law - it can't be enforced here.
Alex

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