Jump to content

Dubai debt collection in the US


JumprDrvr
 Share

Recommended Posts

A good family friend is in Dubai and she's contemplating just packing it up and leaving. She has it on good accord that she is about to be let go from her employer. 

 

She has a couple of local credit cards and a substantial personal loan from a local bank in the UAE. 

The problem is that if she gets laid off, the employer notifies the bank. The bank in turn freezes all her accounts in order to settle the personal loan. She will be prevented from leaving the country. Now, every credit card or personal loan is "guaranteed" by a "guarantee check" which is a blank check to the bank. If you default on the loan for whatever reason, they will attempt to cash the check. If the check bounces, you will be arrested and held until the debt is settled. 

 

Assuming she leaves before this happens, can this debt follow her back to the US considering none of this debt is from a US-based entity.

 

What's the worst case scenario?

Link to comment
Share on other sites

Assuming she leaves before this happens, can this debt follow her back to the US considering none of this debt is from a US-based entity.

 

The short answer is yes.  The long answer is there is no way to predict if they will go to the time, trouble, and most important expense of pursuing foreign debt collections.  However, given the immense wealth of that small country it would not surprise me if their major bank has a collections agreement with major foreign countries whose citizens work there.  

 

What's the worst case scenario?

 

That her employer gets wind that she is planning to go ahead and leave and tells the bank before she can.  They attempt to cash that check and she ends up in jail trying to get it paid.

 

I can tell you that the UAE countries are NOT any that you want to break their laws in.  She needs to be fully aware that the USA can do little to help or protect her if she breaks their laws and is caught doing so while there.  Many years ago when my Dad was senior legal counsel for a major international hotel chain he told us of the company policy that when new employees to the UAE region landed they were immediately taken to watch "court" where punishments are immediately handed down.  That included thieves having hands chopped off etc.  They do not play with their convictions and she should consider ALL the risks to her plan.

Link to comment
Share on other sites

If she does follow your advice creditthis and gets away with it, she had better not leave the USA again for any reason. There may not be an extradition treaty between UAE and USA but you can bet other western countries (such as Canada) has one.

 

To do what she is doing is a violation of Islamic Holy Law and the Quran I believe. They kinda take that seriously there and punishments are alot harsher. The US embassy also has limited options to protect its citizens (assuming the government follows the Geneva Convention which many in that part of the world do not).

  • Like 1
Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.