Debt collection includes overdue invoices for companies, personal debt to individuals, bank debt and even amounts owed on bounced cheques. The amounts involved range from a few thousand dirhams right up to multi-millions.

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Our firm has highly experienced debt collection lawyers that specialize in the process of debt recovery through dispute resolution, mediation, negotiation, and settlement as well as criminal and civil litigation. Our experts are familiar with the cash flow management concerns associated with any nature of credit disputes. Our team is well educated and familiar with debt collection techniques including demand letters, recovery notices, and applications.

 

According to the current legal system in the UAE, there is a statutory limitation which imposes 2 to 10 years time period for individuals or companies to file any litigation action against another for debt recovery.  The UAE law is developing towards excellence in commercial law enforcement, but resorting to legal procedures is less favorable for debt collection. This is not just unique to UAE but everywhere else, that the lender will look for a way or follow an out of court procedure to recover their debt.  In terms of debt collection, this is often faster, faster, more responsive and costs less than the cost of legal action.

As per the clients requirement, we can tailor debt collection action to your specific circumstances and can act for the creditor or the debtor in these issues. Clear understanding of the root causes, bottle necks will always enables avenues and procedure to give proper result withing the prevailing UAE legal system.

We represent our clients in all types of civil law cases that include, but are not limited to:

  • Corporate debt Recovery
  • Corporate receivable collection services
  • Debt collection services for financial products ( ex: Loans, Credit cards, etc..)

Frequently asked questions about Debt Collection

If you do not make sufficient payment, the debt collection agency is within its right to take you to court. The debt collection agency will have to serve you with a registered legal demand notice to repay the debts on behalf of the lender. Then you are obliged to pay the initial debt plus any additional fines within 15 days of receipt. If you fail to do so, a court case will be filed. The court proceeding necessitated the hiring of a debt collection attorney to pursue the case, as court proceedings in the UAE are conducted entirely in writing. The court will rule following a thorough examination of both parties' proceedings.

You might not have to pay a debt when you are in the following scenarios:

 

  • If it has been 06 years or more since you made a payment or were in contact with the creditor.
  • If there was a problem when you signed the agreement, for example, if you were forced into signing it or the agreement wasn’t clear.
  • The creditor/lender didn’t check properly or follow up procedure that you could afford the repayments when you signed the agreement.
  • If you were an additional cardholder. For example, a spouse or partner, the credit card company can't ask you to repay any debts on the card. These are always the responsibility of the main cardholder.
  • If you’re under 18 you can only be responsible for a debt if it’s for something you need for day-to-day essential expenses. This could include a mobile phone contract, clothes or food.
  • Time limit on a debt has passed.

Any civil claim is time-barred after a time period of 15 years elapses from the moment of its existence, unless a specific provision of law relating to the matter states otherwise. There are many specific shorter time limits for specific types of claims, and most of these are contained in the UAE Civil Code itself. [Article 473 Civil Code]. For most debts, the time limit is 6 years since you last wrote to the creditor or made a payment. The time limit is longer for mortgage debts. If your property has been repossessed and you still owe money on your mortgage, the time limit is 6 years for the interest on the mortgage and 12 years for the main amount.

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