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Five Effective Strategies for Debt Collection in the UAE

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It seems quite a task to extract the due payments from someone who is not approachable anymore. Eventually, the amount turns into a long unpaid debt. However, there is a solution from Dubai Lawyers to such a problem which is debt collection. 

Debt collection is the process of pursuing an individual to get the money they owe to an individual or a company. In this regard, several services are available in the UAE in the form of Debt collection agencies that cover full debt collection that you need to use the legal route to recover said debts. Rental arrears, bank loans, and bounced cheques are examples showing debt collection in use. People usually go for legal assistance in this regard because it is a process that involves various complexities. The debt collection Dubai agencies tend to simplify those complications for you. 

Some Effective Strategies by Lawyers in Dubai

Debt collection is a process that requires legal assistance and consultancy from credible sources such as debt collection Dubai agencies. They have well-sorted plans for you to extract the amounts that have been pending for quite a time now. Thus, it is advised to go for legal assistance if you want to pursue the unpaid amounts. 

Below are some effective strategies to adopt if you want to execute your plan of debt collection in the UAE flawlessly. 

  • Do Your Homework

Perform a background check for the debtor to ascertain their credibility and honesty within the market. This process could include acquiring a police certificate to check if they have any pending cases or delving into their past business interactions to possibly find ways to retrieve the debt. It is beneficial to try and get as much information as possible to make an accurate assessment of the person in question.

  • Keep Proper Documentation

The information you gather on the debtor is vital information the debt collector uses to build a case. Evidence showing money owed includes outstanding receipts, written contracts, or any other telling forms of information. Many times debt collection procedures have broken down due to very poor record keeping. Hence, a proper record check is significant while you execute the process of debt collection. 

  • The Security Cheque

In the UAE submitting a security cheque as part of the lending process is commonplace. They indicate a higher level of commitment on the part of the debtor and increased assurance to the creditor. Security cheques can be presented to collect a debt upon maturity. Similarly, a bounced security cheque can be grounds to start legal proceedings. At this point connecting with a debt collection agency opens up a dialogue between debtor and creditor to recover the owed money amicably.

  • The Amicable Settlement

The Debt Collection Agency or lawyer will use the information and Security cheque (if any) to push for a peaceful, hassle-free settlement of the outstanding debt. In the case of debt collectors, the process begins with phone calls and possibly emails advising the debtor to settle the matter amicably before they have to escalate the issue to the courts. A lawyer may begin with a legal notice politely telling the debtor to settle the matter out of the courts. Debt collection methods operate within the parameters of the law.  

  • Legal Options

It is suggested to consider registering a civil or criminal complaint if there is no amicable decision. With this will also come legal costs which you would aim to recuperate by successfully winning against the said debtor.

Filing a petition with Dubai Lawyers in Dubai court to recover your debt would be the next step that you look forward to. The court will notify the debtor through a registered demand letter to settle the amount with any additional fees within 15 days. After the proceeding session, a trial will commence conducted in writing. All should be well documented with Arabic translations and appropriate court fees.

The court will assess the information provided. Either party has the right to appeal within 30 days from the date of the judgment before the Court of Appeal. The court has all the authority to make a decision and both the parties awaiting the results are supposed to accept the decision. The decision is generally made on a neutral basis and is just in nature.

The debt collection agencies are of great help in all the strategies mentioned above. 

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