‘Banks lodge po­lice cases against debtors so that in­sur­ers will pay out’

7 Days in Dubai - - DEAR 7DAYS... -

Banks claim 70 per cent of the out­stand­ing debt from in­sur­ers. This re­quires them to wait to a cer­tain point of de­fault be­fore they lodge a po­lice com­plaint. Once the per­son in ques­tion is in cus­tody and is sen­tenced ei­ther to do jail time or a fine of Dhs1,000-30,000 de­pend­ing on the cheque value. The bank will then claim in­sur­ance money. Some banks will lodge a civil case but most will not. They will con­tinue to ha­rass you to pay af­ter all that though they have no cheques any­more but that is al­ways ex­tra funds com­ing into the bank. Tech­ni­cally if you do jail time or paid a fine in court, you have been pun­ished for what is con­sid­ered a crime in the UAE and that’s hand­ing out a cheque with ill-in­ten­tion. Also note, banks hire in­ter­na­tional of­fices to col­lect debts from those who leave the coun­try back in their home coun­tries. HOW­EVER, these cannot lodge po­lice

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