Dubai Debt Collection Agency

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A debt is a financial obligation against a provided contract, commodity, loan or any other responsibility that has a benefit of money on a person or organization.

Missing a promised deposit, a bounced cheque, refusing to repay loans and settling to timely markups and outstanding medical or other utility bills are the things that will trigger the debtor's default status.

This is when the lender employs an attorney for debt collection or debt recovery to help them get back their debts.

1. How debt is recovered in the UAE

1.1. The rules of debt collection in the UAE aren't very comprehensive.

Bad debt restructuring in Dubai can be very difficult for creditors to do. This is because there are no specialist financial claims tribunals in the UAE and the debt collection counsel has to prosecute the client in the civil courts.

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1.2. The world debt recovery ranking of 2108 also shows UAE with the worst debt collection

performance among the 3 nations. The other two UAE's are Malaysia and Saudi Arabia.

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2. Why is Debt Collection in UAE a Challenge?

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2.1. Recovery processes for Dubai creditors can be difficult for different reasons.

The absence of specialized financial litigation tribunals leaves it up to the Federal Supreme Court or the Court of Cessation to ultimately decide creditors' claims against the debtor.

2.2. Civil laws apply to both the bodies and their sub-institutions.

In addition to local laws, accounting policies and insolvency cases are the major factors that threaten debt collection in the UAE.

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3. What are the ways of recovering debt in the UAE?

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3.1. The UAE law is evolving itself towards perfection in the enforcement of economic legislation, but for debt collection, moving into legal procedures is not much preferred.

3.2. This is not only in the UAE but elsewhere, that the investor would look for a way to recover their loan or pursue an out-of-court process.

3.3. Most of these ways are cheaper, more efficient in terms of debt collection and less expenses compared to the costs paid for the same in a legal process.

3.4. Debt recovery facilities in Dubai will help the applicant reclaim their loan out of court. A qualified debt collection agency gathers all the debtor-related information available.

3.5. We then reach out to the debtor on behalf of the trustee in a very polite way to remind them of their unpaid debts. This contact is only allowed by telephone and by email.

When loans are not settled on time, they try to inform the debtor of the possible legal repercussions.

4. Keeping it fair and legitimate

4.1. It's very important to understand why the trustee employs debt collection firm professional services instead of taking the claimant to court or compelling them directly to pay back the debts.  

Even if the debtor failed to pay their loans, the trustee prefers to take legal measures for recovery.

4.2. The debt collection agency therefore also has to behave in a professional manner when monitoring the debtor and when contacting them for recovery.

This is because the debt collectors serve as the lender's members and any unethical or unlawful act by the debt collection agency can also harm the lender's reputation.

4.3. Collecting loans is not an easy task and requires a great deal of expertise for the debt collection companies to properly retrieve bad debts on behalf of the borrowers.

There have been many cases where the actions of debt collection agencies have turned out to be very unjust and their activities have caused more issues for both the trustee and the debtor rather than solving the issue.

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5. It is important to choose the right debt collection company

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5.1. A professional debt collection agency will first examine the reasons why the debts turned into bad debts.

What were the reasons which made it impossible for the debtor to pay their debts, was it possible for the debtor to make any payments in the past and what was their payment history? They'll also search for a debtor's current circumstances and find out what the debt collection options are.

5.2. The job of debt collection agents should not only be a facilitator for their company but also for the debtor.

All debtors aren't the same, there will be many people who understand their loan responsibilities to the lender and work hard to repay their debts. It is the conditions that aren't beneficial to them at times and they can start paying back with a little help.

5.3. A good debt collector will also serve as arbitrator and mediator for debt recovery between the trustee and the debtor.

We are trying to make the conditions simpler for the claimant to pay their debts back.

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6. If the debtor is not responsive

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6.1. If the debtor is incompetent to respond to the debt collection efforts made by the collection officers, or make commitments and break them again to buy more time, then the debtor is really dodgy.

That debtor is a problem. The debt collection company will have to give them a note of recorded legal obligation on the lender's behalf to pay back the debts.

6.2. The debtor on receipt will be liable to pay the original debt within 15 days with extra fines if any.

If the claimant refuses to do so, a lawsuit will then be put before the judge.

6.3. The court proceedings provided debt collection services with the right debt collection attorney to pursue the case, as the UAE court proceedings are held in writing only.

After a full analysis of the case by both sides, the court will decide.

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7. Our team

Either you don't owe back loans, or you need a bounced recovery check, we have the best debt collection services in Dubai to take care of your debt collection, no matter what type of debt you need to raise.

Our experienced, professional team knows how to handle such circumstances with greater responsibility and efficacy.