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What Happens for not paying the Credit Card Debt in the UAE?

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Have you ever thought about what would happen if you ran out of money to pay off the credit card bills in UAE? If not, then you must be managing the budget right or you forget to plan what would you do in case things go out of order. You must give this issue a thought as it might

In case you are questioning what would be the consequences of such issues then here is a brief outlook for you. However, the compact yet most effective answer to this query is that you would be having a really tough time in such situations.

You may also read: 8 Ways to Pay off the Outstanding Debts

Credit Card Debts in UAE

For getting a credit card in UAE, the banks or other authoritative bodies mutually sign an agreement with the applicant. They get a blank cheque from the client as a commitment that they will be paying off the credit card debts without any delays.

The actual procedure of recollecting the money stats when a person does not pay off the debt on time. Irrespective of the reason behind missing the credit card bill payment, one should always try clearing the credit card payments on the specified date.

People usually face medical emergencies or sometimes they have to deal with other important debts which make them delay paying off these bills. In such circumstances, the owner will be charged with a high interest rate of late payment fee which also takes a hit on your financial score.

If you keep delaying the reimbursement of credit card debts in UAE, then you will be liable to face the following consequences.

In case you have been delaying the payments and ignoring the legal notices from the bank, then you are getting yourself into trouble. The next step would be taken by debt collectors as they would contact you till the time you pay off the overdue payments.

The process does not stop with calls and faxes, debt collectors might visit your office or home to ask you the reason behind such irresponsible behavior. They will try every possible way to recover the money on behalf of their client through amicable and judicial procedures.

Therefore, it is always recommended for credit card owners to reach out to the bank beforehand. Do not wait for the call from debt collectors as they would use legal policies to get the money back which are not easy to deal with for non-paying clients.

Deposit Security Cheque

Banks in UAE collect blank cheques from the credit card owners which are helpful in such circumstances when a client denies paying off the credit card debt as per the deadline. The banks have the right to use that cheque in case you do not respond after continuous reminders.

However, if a cheque gets bounced, then you will come under a police case. A few days back, cheque bounce was regarded as a criminal offense in UAE. But thanks to the amendment of UAE laws bounced cheques come under a civil case which means no arrest but fine penalties.

Police Case

You cannot sneak from clearing the credit cards in UAE but they will keep on chasing you in the form of a police case. There are high possibility that you will get caught while entering or leaving the UAE as the immigration and police system of UAE is well-connected.

They can spot you right on time to check whether any police case is filed against you or not/ In case your name appears on the defaulter list, then you would have to go to the police station and even court in serious issues.

To ensure your reputation in UAE, make sure that you do not run away from paying off your credit card debts on time. In this way, you can save yourself from relevant authoritative bodies at the airport and travel carelessly without having a fear of being caught.

Hampered Credit Scores 

Failing to clear the debts for your credit cards will make you face a major hit on your credit score. Not only this, but it would also stop you from getting into further debt as your previous credit statement would not be reliable. You would be deprived of lending money from any kind of financial service provider due to your credit history.

In the End

Getting a credit card makes your life hassle-free as you do not have to keep cash with you around the clock. However, it also comes up with some rules and policies which you must abide by. Do not consider this card a free purchaser and make sure to check the debt and pay it off right on time to avoid any issues with the help of Lawyers in Dubai.

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