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24 February 2024

UAE mortgage lenders use debt collectors to pursue absconders


By Parag Deulgaonkar

The UAE mortgage lenders are increasingly using the services of professional agencies in foreign countries including India and some other countries in the Middle East, to track absconding defaulters.

Tamweel, the Islamic home mortgage company, said yesterday it will take necessary legal action to recover money from customers who left the country without making payments due to the lender.

In an e-mailed statement sent to Emirates Business, Tamweel said: "In the event that the customer fails to meet the terms of a restructured solution, and defaults on his/her obligations or decides to leave the country without meeting their obligations, Tamweel, within the available legal framework, will take appropriate measures to secure its dues thereby protecting its shareholder value."

The company response came after Al Sayyah Advocates and Legal Consultants, on behalf of their client, alleged Tamweel was "harassing" them in India and was threatening to sue them in India and Dubai.

Ludmila Yamalova, Partner, Al Sayyah Advocates, said: "They have hired a collection agent in India and instructed him to call our client every day until they pay. If they do not answer, Tamweel has ordered the collection agent to go to clients' house every day, until they pay."

However, Tamweel pointed out in its statement that it makes many attempts to establish contact with defaulting customers, both locally and internationally, to arrive at an amicable solution.

"The agencies employed are empanelled under strict guidelines. Once contact is established, our priority is to enter into dialogue and agree on an amicable solution. If the customer chooses not to cooperate, then, under the legal framework, we reserve the right to recover our dues," said Tamweel.


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