They are at night and day, total paralysis in life, closed roads in all directions, stumbling behind a stumbling block that ends in jail or escape from one place to another, thus ending loans and debts and accruals accruing to citizens who may have acted miserably or were victims of the exploitation of bank employees, Or to take advantage of their needs and give them more benefit, to complicate their lives, waiting for intervention from the state, which does not spare any effort to provide assistance, either directly or through initiatives implemented by entities such as Dubai or the Central Bank, and others, but the problem continues, The weakness of the culture of borrowing by citizens, and their rush Or the lack of familiarity with borrowing policies, and not to leave a physical margin of emergency on which they are burdened with burdens they can not afford, such as divorce for which additional obligations such as alimony, child expenses and others , Or sudden retirement.
In this investigation, Emirates Al-Youm is trying to dive into this troubled sea, to identify the reasons that lead to the physical failure of the citizens, their inability to fulfill their obligations and to put them at risk of imprisonment, and to drag their families to great suffering. For various reasons, their fate ended in the Dubai courts, and meetings with direct stakeholders, such as enforcement judges based on one of the most important initiatives to help the defaulters who deserve help, as well as bankers and lawyers.
The phone calls they received from the Dubai Courts Goodwill Committee, promising to include them in the Yak Al Oun initiative, launched in partnership between Emirates Today, the Dubai Courts and the Islamic Affairs and Charitable Activities Department in Dubai, were a lifeline for them. Did not control themselves and cried when they learned to settle their debts and repay them by the initiative.
"When banks offer us loans, our employees talk to us in a nice and tempting language, as if they are giving us gifts, not loans that we will repay," he said. "When we stumble, we find another face that is hard-line and stubborn. , Does not accept any compromise or compromise ».
"I got a loan of about 375 thousand dirhams, and I made a payment to keep it only about 55,000 dirhams. Then I was exposed to emergency circumstances that prevented my ability to complete the amount. I asked for a settlement with the bank, but I received a strict response and was surprised to file a lawsuit against me. Which is the origin of the loan with arrears and fines. If the judge who took the case did not understand the two cases, he would assign an expert and set the amount owed to me, and the bank would be sentenced to only 55,000 dirhams.
He pointed out that the problem does not lie in the intransigence of the bank, its exploitation of the situation, and lying about the remaining amount, but in light of the inability of the faltering citizen to face the bank legally, pointing out that he could not afford the ability to hire a lawyer to defend him, and when he went to the bank to request documents proving his repayment The previous payments, did not find cooperation, and this is expected, in light of their rivalry on the issue, but the court obliged him to do so.
He explained that the case took time, and he committed during this period to seize his passport, paralyzed his life, he can not do any other treatment, whether his work or his children, stressing that he is well aware of the inevitable repayment of debt.
He says that he tried to reach a settlement with the bank. He could not, and he moved from one bank to another to buy the loan from him. Eventually he reached a dead end. The settlements imposed on him exceeded 65% of his salary. If he signed it, he would remain a debtor for 25 years. Many people remain indebted to banks for the rest of their lives, because of lack of awareness, poor culture and poor planning ability.
"I was unable to make the decision in the end. The deductions will not leave any of my salary to my family, my housing and the monthly bills owed to me." He said he was living in a real nightmare until he was surprised by the contacts of the " In Dubai courts, and was informed that the payment of dues owed to him, did not control himself, and cried affected, as the relief came in a moment of despair after the entanglement of all episodes.
He says he knows many people get loans for consumption purposes, but he is desperate to renovate his house. He is being cheated by the contractor. He has not renewed the house and lost all his money, saying it is impossible to apply for another loan.
Temptation and remorse
The second case is that of a young man who works in a good profession in a large government department, all indicators show that he has a promising future, given that he has a job that many others dream of. But his situation changed abruptly when he was seduced by someone who ran a fake governor and invested with him. His career, not yet saved, decided to resort to banks, borrowed first in his name, and then persuaded the fraudulent investor - he said - to obtain other loans, and asked him only documents, and will be provided in his name on those loans, because he has relations with employees of a branch in a bank, In addition to two additional loans, two cars and real estate finance for an apartment on behalf of the young citizen Lee For total accrued benefits to 2.0003 million dirhams.
The details of this complex were complicated and complicated. The young man's life was completely closed. A lawsuit was filed against him. He was suspended for eight months because of the nature of the department in which he worked. He found no flexibility on the part of six banks, And took care of his circumstances, and tried - unsuccessfully - to prove that he did not sign himself on the loan papers.
"The banks are not strict with the citizens in the procedures of obtaining loans, because the citizen will not escape from the state, but they are very intransigent in the case of stumbling, and does not agree to easy settlements," he said, pointing out that he had all the doors to accept an appropriate settlement, But some of them refused to talk, and the responses were blunt, and they swiftly brought the case against him.
"I spoke to a bank official to drop the case, hoping my future was at stake. If I lost my job, they would lose their money altogether, because my salary is my only source of income, but there is no life for those who call, not even respect or acceptable language."
He said that he passed through the worst eight months of his life, he has no work to do, and debt accumulates on him, and he became like a dying voice, until he received a call from the courts of good in the Dubai courts to restore the soul to him, he cried involuntarily, not only helped to repay His debts, and the cancellation of lawsuits against him, but contributed to his return to work, and restore his life again, stressing that his job is everything for him now, and will not borrow one dirham from a bank or a person.
Accumulation of debt
The failure of citizens is not limited to borrowing from banks only, it is just a party or factor of several factors, often accumulate on them, such as citizen (SM), which says that he got a loan from a bank, and his life was going normally, Until he accumulated the rent and increased his expenses on his monthly income. He was unable to pay the loan installments. Later, he discovered that the interest was increased whenever he deferred a premium. Eventually, the property institution hired him, and he was sentenced. , Until Dubai courts intervened, through the Committee of Good Courts, and helped him to pay the due dues It.
divorce
The situation is worse for citizens when a sudden shift in their lives occurs, such as divorce, which entails additional expenses, burdens them, and there are more than 40 citizens who fail to pay their legal dues, and have been sentenced to execution. Which indicates that he was forced to divorce his wife after the difficulty of the ten between them, and since he was actually owed to a bank, he could not afford the expense that was issued for the benefit of his employer, and accumulated it amounts, Until it reached 490 thousand dirhams, and got a ruling on implementation, and complicated his life Z pretty much, what was spent on one house before, became now calling for his weakness, and almost locked up without the intervention of the courts of Dubai to help him.
Shock in court
Despite the similarity of many defaults to debt-laden citizens, some of them have been very shocked, such as the case of a citizen who, by sheer coincidence, has a registered case against him from a telecommunications company with a telephone bill of only AED 1800.
The MA said that he was reviewing the court in another case. He was surprised by the case. He was very shocked. The giant institution decided to drag a citizen to the courts for such an amount. He would have known nothing about the case. Against him, and damaged his reputation, because the institution did not attempt to communicate with him, and to inform him the need to pay the bill, so as not to take action against him.
And confirms that the expenses incurred by that institution on the case is no doubt that it is more than the value of the invoice, and it was easier to talk to me, and spend the amount of two months.
• Banks use collateral checks to sue customers with total loans, although most are repaid.
• "Madiouny" from 6 banks chasing a young man and suspending his job for 8 months.
• 40 citizens failed to pay legal dues in Dubai.
Central Bank takes corrective action to protect borrowers
Two banking experts: specific requirements for the settlement of loans defaulters .. Banks do not deliberately harden
Two banking experts believe that the situation has changed considerably now, after a package of corrective measures taken by the central bank and committed by banks to reduce the unjustified rush to give citizens and others fictitious loans, regardless of the size of income or salary, pointing out that there is weakness In a borrowing culture, and a rush to borrow for review and consumption purposes, such as travel, luxury car purchases, and non-accounting for emergencies.
Banking expert Sami Al-Awadhi told Emirates Al-Youm that there is no abuse from banks today, unlike what was happening before 2011 almost when banks were giving the client loans that are not commensurate with his salary. One of them receives 10,000 dirhams and gets a loan But the central bank has issued a decision not to exceed the credit limit of any customer on 50% of his salary, so that he can save expenses on his obligations to live.
He also specified periods for repayment of the personal loan, not more than five years, and four years for the car loan, so that the person can make the appropriate decision when the loan expires, unlike the previous one, as the customer dies and is still repaying the loan.
Al Awadi explained that the guarantee check is now only for the amount of the loan. There are also amendments to monthly checks with the value of installments. The loan does not exceed 20 times the salary. Or slightly more, depending on the client's income, and the nature of the institution in which he operates.
He continued: «In case the bank filed a lawsuit against the client the total amount of the loan, he can prove the installments that he paid», stressing that these measures applied by the Central Bank, contributed to the elimination of many problems, especially as he launched an initiative to settle outstanding loans to citizens defaulters , Examine each case separately and take action to settle in a manner appropriate to the parties.
He notes that there is a system currently in place, which is based on the study of each client's CV and on the basis of his or her obligation to grant loans, credit cards or even checks.
And confirms that the problem remains in the personal culture of the citizen, some resort to other parties to debt, or perhaps something surprising to his life, compounding his obligations, such as maintenance after divorce, or personal debt of individuals, or retirement, unfortunately does not take the citizen reserves previously, The maximum loan allowed by the Central Bank, without leaving a margin to help him to cope with the emergency.
"The requirements for life are now difficult," says banking expert Emotif al-Hermoudi. "The responsibilities are compounded by the birth of children, the increase in their obligations, and the high prices. This situation requires some kind of prudent borrowing and the cessation of debt for entertainment purposes.
She added that banks do not give the debts to minors, and the client is supposed to read the contracts well, and to understand the terms and conditions, pointing out that some of them hit a difficult situation when he postpones installment, or stumble in payment, and when the bank tells him that he signed these conditions, Fatal error, and requires some kind of awareness.
And indicate that the current generation of citizens cultured, and before someone buys shoes is being searched on the Internet to know its advantages and disadvantages, what if we were to apply for a huge loan ?! But some neglect it, pointing out that the central bank placed many restrictions on the granting of loans, so as not to live a debtor throughout his life, but some of them move from one bank to another to buy his loan, but resort to the leveraging of people with interest, and this puts him at stake Stumbling.
"It is regrettable that one of them is obliged to travel annually to expensive destinations or to buy luxury cars," Al-Hermoudi said. "These behaviors are unjustified, especially in light of the provision of all life necessities of land, housing and education for citizens. By the government.
The central bank has set a maximum limit for borrowing or credit cards, not to exceed 50% of the salary, but the client is supposed to not exceed 35% of the debt, so that he does not put himself at stake, indicating that the citizen intends the bank to obtain a loan, The ceiling directly, as if this money a gift will not be refunded.
Regarding the vagueness of the loan contracts and writing them in a small font in huge pamphlets, Hermoudi says that the person asks 100 times before buying a new mobile phone, so why not ask the customer before signing ?! Stressing that there is a shortcoming in this aspect of the majority, but she personally fall into this error, so must change this culture.
With regard to the intransigence of the banks and their emphasis on the insolvent citizens, they emphasize that it is not in the interest of any bank to block the settlement, but the client must realize that there are things beyond the bank's will, including the absence of any change in the salary of the customer who is transferred to the bank. Settlement if he receives the same salary? Pointing out that the banks understand if the citizen is affected by something, such as retirement or reduced salary to move to another job.
It turns out that any other obligations on the customer is not the bank's income. There is a contract between the parties, explaining that the banks do not resort to the courts easily because they are affected because of the length of the litigation and the cost of this procedure. .
• Citizens owe the maximum .. Some borrow for review and consumption purposes.