Legal in UAE: How do I restructure a loan after my salary has been cut? – New



Question: I have a credit card with an outstanding amount of 35,000 Dh. Due to a salary restructuring at my current workplace, my salary has been reduced by 30 percent. I have not been able to continue the payment in the past four months. How can I work with the bank to restructure my refund? Also, I get a lot of harassing calls from the bank. What are my rights ?

Reply: Following your questions, wishing to restructure your outstanding credit card payments with your bank and know your rights related to harassing telephone calls from your bank for non-payment of outstanding payments by credit card, the provisions of Circular no. ° 8 of 2020 of the Central Bank of the United Arab Emirates regarding the Consumer Protection Regulation (the “Consumer Protection Regulations for UAE Bank Customers”) are applicable.

In the United Arab Emirates, if a customer defaults on their unpaid amounts on their credit card or personal loans, they can ask the bank or financial institution to restructure their personal loan or credit card arrears. credit. If the bank or financial institution agrees to restructure its customer’s personal loan / outstanding credit card payments, the bank or financial institution may, within ten days from the date of agreement with the customer, restructure the loan amount or credit card outstanding provided a revised repayment plan. This is in accordance with Section and of the Consumer Protection Regulations for United Arab Emirates Banking Customers, which states: the authorized financial institution shall, within 10 full working days, provide the consumer with in writing, a clear disclosure and explanation of the revised repayment / payment agreement. The authorized financial institution will provide the consumer with a copy of the detailed and revised payment schedule, as well as a breakdown of how payments will be allocated to interest / profit and the outstanding balance. The licensed financial institution must disclose to the consumer that the consumer arrears reports are to be shared with the credit reporting agency. When arrears arise on an account and a consumer makes an offer of a revised repayment / payment agreement that is rejected by the authorized financial institution, the authorized financial institution must internally document its reasons for rejection of the offer and communicate to the consumer in Writing why the deal was rejected.

Plus, your bank can’t harass you while tracking you down to repay overdue credit card payments. The bank cannot call its customers excessively and during unreasonable hours to collect credit cards or overdue loan amounts. This is in accordance with Section (c) of the United Arab Emirates Consumer Protection Regulations for Banking Customers, which states: “In its attempts to contact a consumer by telephone, an authorized financial institution shall not making an unreasonable and excessive number of communications. actual attempts / communications with the consumer. Such actual attempts / contacts should only be made during the hours of 9:00 a.m. to 8:00 p.m. When the consumer has not been reached, a message must be left by the authorized financial institution and / or authorized collection agent, so that the consumer has the possibility to call back the same number used by the authorized financial institution. and / or licensed collection agent.

Based on the aforementioned legal provisions, if you feel that the bank is harassing you by calling you frequently by phone and during unreasonable hours, you can file a written complaint with the bank where you used the credit card facility. in accordance with procedures. in accordance with Article 8 of the Consumer Protection Regulations for UAE Bank Customers, which stipulates the handling and resolution of complaints. In the event that the bank continues to harass, you can contact the Consumer Protection Department of the UAE Central Bank and file a written complaint against the bank.

Ashish Mehta is the Founder and Managing Partner of Ashish Mehta & Associates. He is qualified to practice law in Dubai, UK and India. All the details of his practice on: Readers can email their questions to: [email protected] or send them to Legal View, Khaleej Times, PO Box 11243, Dubai.



About Author

Comments are closed.