UAE banks… reclaim, but don't destroy debtor

Over the past months I have been horrified at the rate of response from some UAE bank creditors in the face of the debtor running from building to building, from emirate to emirate, in some instances being refused access to legal departments.

Their only attempt was to meet with the key decision-maker who can consider their restructure request and amicably derive at an understanding beneficial to both parties.

My articles have generated huge interest from debtors who have even gone to the lengths of contacting CEOs of some banks, with no response.

Instead debtors are faced with up to 50 telephone calls in a morning by 12noon and being badgered for payments they are unable to meet.

Even in a few instances I recommended the debtor pay the amount they currently have with them but they found it was not really acknowledged; only the overdue amount was continually demanded, with threats of legal action.

I am not on the debtor’s side I am on the human side and when a debtor continues to take calls from Collections Departments and Agencies, take the time out of their working day to go to these offices, gets there and finally emotionally breaks down as the demands and threats is of key importance, not the actual visit, then I am at a loss.

As an experienced banker and auditor, I am certainly aware of the risks in approving such restructures which then removes the debtor from the 'danger zone'.

However, new risk elements can be introduced and factored in as an integral part of the restructure policy as the bank must also protect itself.

This is not impossible with the vast experience within banks, but the key is not to intentionally put the debtor at risk, when they have taken responsibility and the time to present their situation, discuss the possibilities and request consideration approval.

This article is a plea to banks to consider a more humane approach if they are not already following such processes, but the debtors I deal with cover almost all of the banks.

However I have had some debtors praise some of the banks for really supporting and enabling them to comfortably meet their new restructured monthly payments with ease, eliminating all these fear factors and emotions that is engulfed into a human body daily, without any release, the end result could be a dire illness.

I agree that banks or any creditor is not a charity, but when someone really takes the time to set the record straight, then the right thing to do is to listen and feel, make a decision based on your policies, present them for approval and ensure you have covered all key facets of this agreement.

That includes the key factor of debtors absconding once the situation is back under control, because trust can only be given once proven, not before so unless the debtor is consistent for the next year or two, there are no guarantees in approving the restructure.

By the same token this message goes to debtors because you need to only request such consideration when you are doing it from your heart, when you are totally committed and want to be debt free, not when you have hidden agenda’s to abscond or relocate.

People so easily take this route unbeknown to them that you cannot run away from your problems and it does not matter where you go because at some stage of your life, it will dictate that you pay your dues, in whichever form it presents itself.

The UAE is a country where you can fully recover within the minimal timeframe comparative to anywhere in the world and I am talking of experience.

The Leadership continues to offer unique opportunities for recovery and growth and to continue living the life you enjoyed in the past. You can go anywhere in the world but you are never going to be afforded the same lifestyle, security, safety, opportunities, living standards and much more that we as expatriates enjoy in the UAE.

So, we should respect this huge aspect of our existence in the UAE and as a human when someone affords you credit or a monetary opportunity to achieve your goals, objectives or aspirations, then you must do the right thing and that is to repay it with the respect it deserves.

Banks and creditors are not a bottomless pit, neither a charity so they have a job to do and that is to collect the money owing to them and it is your civic duty to respond to that call.

But by the same token if you are in a situation that is not self-inflicted for some reason and you have options to present, then the creditor should give you a fair hearing and offer an alternative that is within their authority, to enable an amicable agreement between both parties.

I see no reason why placing a debtor into a worse situation is a priority, in spite of a partial payment being made, versus actually listening and trying to assist to the best of their ability.

Not listening to a desperate debtor is soul destroying for the latter party and sometimes situations just gets out of control, resulting in an inability to meet a monthly payment commitment.

We are all fallible, not one of us are not susceptible to failure at some point in our lives and so when we are on the positive side of the fence, we should never assume that ‘it won’t happen to us’ because we don’t know what the future holds.

The key is be kind to people, see it from their point of view because staff in this position are trained to identify the authenticity of debtors who approach them, if not, then training should be initiated to ensure this is the situation.

Yes many debtors are careless with money, which is why they find themselves in bad situations, but beating the same old story until it’s dead, is not going to serve the creditor, only perhaps resolving this default situation enabling them to recoup their money, even if it is over a longer tenure.

The fact is, they are also incurring an additional interest payment, so it is a win-win situation for them too, if they can implement more safety and risk measures within the legal restructure component.

In all facets of life if we took the time to communicate and reciprocate requested communications by openly discussing matters, the world would be a better place for sure.

We are way too busy to push people down more than what they are because we never for one moment assume that person could be us one day and I too have seen that come around.


[Note 1:  Theda Muller is a UAE-based author of two books: Embrace Financial Freedom Volume One: 10 Proven Ways To Release Debt And Emotional Fears In Today’s Economy, and Volume Two: Releasing Fear And Bouncing Back From A Debt Crisis.

She also conducts webinars and workshops on debt recovery.]

[Note 2: The views expressed are the author’s own and do not reflect in any way, the views of Emirates 24|7. Readers are advised to carry out their own due diligence before taking any decision.]

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