Urgent.. The Emirates issues clarification regarding credit card dues
After having my resident visa cancelled, I will be returning to my birth country in a short period of time. I still owe money on numerous credit cards, which I want to pay off on a monthly basis when I return to my former haunts. So, what should I do?
As a result of your questions, we are operating under the assumption that you intend to return permanently to your home country, close all of your bank accounts in the UAE, and never come back to the UAE on a resident visa. As a result, the requirements of Notice No. 3692/2012 of the Central Bank of the United Arab Emirates concerning General Terms & Conditions and Loan Agreements texts developed and approved by the Emirates Bank Association are applicable.
Regulations governing the terms and conditions of a personal loan on credit card facility
In the United Arab Emirates, the provisions of laws and regulations that govern the terms and circumstances of a personal loan may apply to a credit card facility that is granted by a lender to a borrower in the form of a credit card, It is possible for a lender to request a signed loan agreement or application form from a borrower before granting the borrower access to a credit card facility, This agreement or form includes the terms and conditions that are associated with the credit card facility.
When all fees are due and payable?
An instance of default may be deemed to have occurred in the case of a credit card holder in the event that they miss either three monthly payments in a row or six payments total, regardless of whether they are consecutive or not, This is in accordance with Article 4(4) of the Personal Loan Agreement format of Loan Agreements Formats Approved by the Central Bank of UAE, which states, "The loan elapses and all the instalments, interests, and any other fees and expenses become due and payable immediately without having to give any notification or any court ruling and without prejudice to any other rights of the bank according to this agreement or in accordance with the law - in the event that the borrower defaults on the loan or violates any other provision.
What happens if you refrained to make the required payments?
You are legally required to make the payments that are owed to the lender in accordance with the provision of the law that was just described, If you fail to make the required payments on your credit card, the company that issued the card to you may bring a lawsuit against you in civil court to recoup the balance of the debt plus any associated fees, In the event that the final decision is rendered against you, the lender may proceed to file execution actions against you, These processes may include a request to impose a travel ban and issue an arrest warrant against you, If the final verdict is rendered against you, the lender may also move to submit these proceedings.
You should therefore approach the lender from where you obtained the credit card facility and advise them that you will be travelling outside of the UAE and will not be returning to the UAE, This can be done because you are now travelling outside of the UAE, You should also let the creditor know that you intend to settle the credit card payments in a prompt manner while you are in the country that you call home either on or before the due date.
How to make payments against your credit card balance?
If the lender accepts your proposal to pay the overdue amounts from your home country, the lender may advise you on the payment choices related to instalments to be made to it, Based on the same, the lender may advise you on the payment options connected to instalments to be paid to it, You are able to make payments towards your credit card balance by logging into the online banking portal associated with your primary residence and using the credit card account or card number, You also have the option of notifying your lender about the transaction and having a telegraphic transfer (TT) performed from a financial institution or bank in your home country to the credit card account or card number, This would be considered an alternative method of payment.
In addition, once you have paid the lender all of the installments that were due to it in relation to the credit card facility that you obtained from it, it is recommended that you request a clearance letter or a no-due certificate from the lender.
You should get in touch with your lender if you have any further questions or concerns regarding this situation.