The penalties for delaying loan installments double the suffering of citizens and exceed the debt assets

A heavy burden borne by the Dubai Courts Good Courts Committee exceeds the responsibilities of its members as execution judges, an attempt to settle the debts of the defaulters, who have been sentenced, both for banks and other institutions or persons. The Commission effectively dismantled dozens of defaultees through Voluntary funds received from several sources.

The members of the committee stand on the main reasons for the failure of the citizens and the proposed solutions to remedy the imbalance, stressing that the responsibility is shared by the parties to the case. The banks must show some flexibility in the settlement procedures before proceeding against the person who is struggling. To notify the applicant for a loan or credit card, with all the terms of the contract, including delay penalties, sometimes up to 12%, and exceeding the same principal in registered cases dealt with by the Commission.

On the other hand, citizens should realize that luxury should not be leveraged, pointing out that there is some kind of credit card fraud, which is the worst 100 times the personal loan. There are many cases of people who do dental implants (Hollywood Smile) In debt, believing that it would only need to just pass the credit card on the machine draw, then enter into an endless cycle.

In the second episode of the investigation, Emirates Al-Youm conducts dialogues with members of the Commission, who look at dozens or even hundreds of cases of defaulters, to explain the causes, circumstances and solutions. It also summarizes, through interviews with relevant parties, 10 reasons for citizens' failure and seven solutions to the problem.

A young woman, a recent graduate, joined a good job with a salary exceeding AED 21,000. She immediately went to a bank and financed a car worth about AED 500,000 to pay monthly installments of up to AED 12,000. With the help of her father.

"This is irrational and irrational behavior," said Judge Abdulrahman Al-Emadi, head of the Committee of Good Courts. "Such a girl will later falter in their lives once they are exposed to an emergency order such as dismissal or reasons. Others, "pointing out that her family tried to discourage them, but insisted on its position, which is not an exception, but a recurring model for many young people who are seduced by luxury, and are driven to borrow without regard to the size of their incomes or salaries.

He stresses that it is necessary to introduce a decision that obliges banks to rationalize loans to new employees. They are not allowed to deduct more than a quarter of their salary, because young people do not realize at this early stage of their lives the consequences of their rush to borrow for recreation at an early age.

"The weakness of the culture of borrowing, the lack of legal awareness, the desire for quick profit, the obsession with luxuries and entertainment, and the lack of preparation for emergency expenses, such as divorce and the heavy burdens, illness or the need for additional expenses such as schools.

He adds that there are several stages in which the person who is stumbling before executing the sentences against him begins to negotiate personally with the bank or the creditor. If this stage fails and the bank insists on instituting a lawsuit against him, If a judgment is issued against him and he reaches the execution department, a final stage of the settlement begins, during which the person is given a period of payment, and the courts of benevolence intervene to help those who are unable to pay after studying their files well and making sure there is no source or income to pay.

He points out that the weakness of the legal culture sign borrowers in many problems, starting with signing contracts that they do not read. If most of them read them, they do not understand them for vagueness. Hence the bank must be obliged to clarify the contracts to the people.

The delay penalties range between 9 and 12 per cent depending on the contract between the parties, and the customer collides with it only when it falters. This is of course in the interest of the banks, there is no other source that achieves this amount of profit until the deposits themselves or investment in real estate does not reach it.

Al-Emadi continued: «Through the many files in our hands, we see that credibility is not achieved by the full proportion of the parties to the problem, the citizen complains sometimes with the Central Bank to refuse to give a bank a loan, and when it falters complains keenness of the bank to recover money», Usually with an unsecured loan first, the person submits it.

It shows that the accumulation of debts is a result of mismanagement, and sometimes the rush of profit, such as tempting a citizen by setting up a project in his name and giving him a sum in return. When the project falters, the citizen finds himself in a problem that he knows nothing about, And his salary will be reduced according to the law.

Al-Emadi says that the courts can find the truth by various means, and there is a person who has sued him against 280,000 dirhams, and he abused the bank's arbitrariness and insisted that he paid part of the debt. The court appointed an expert , And reached the fact that the amount owed is only 140 thousand dirhams, and the «courts of good» settlement between the parties, stressing the need for the parties to verify the credibility from the outset.

"We have competitive standards in the courts, and the state reached the ninth place in the world in the ease of litigation, and we separated only two degrees to achieve the third place, and we actually finished one of these two degrees, and can not We sacrifice this huge effort to achieve this advanced position in order to slow down certain issues. "He pointed out that the Dubai courts, for this reason, created the courts of good, so that each one of them gets his right in a timely manner, according to a fast and efficient system.

For his part, says a member of the Committee of Good Courts, the executive judge Jassem Mohammed al-Zarouni, there are cases that require a lot of study, such as the accumulation of telephone bills on citizens, amounting to 50 thousand dirhams, and some cases 140 thousand dirhams, pointing out that this is an unjustified situation, The telephone service provider is supposed to set a maximum limit that is not exceeded by bills, and cuts off the line immediately, rather than leaving many months to become complicated and unable to pay the customer, and then transferred to the courts later.

He adds that the number of cases handled by the courts because of the accumulation of telephone bills is not a little, and it makes no sense to take immediate action against people who are late in paying electricity bills, although more important and necessary for human, while the slow pace of telephone service providers to collect their bills until things get complicated.

Al-Zarouni added that the "courts of good" have managed to make compromises between banks and people who are defaulting. However, there is a need to resolve these problems before reaching the execution judge. He appreciated the understanding of some banks and their agreement to the settlement through the committee, but solving the problem from the beginning will dispel the parties from many complications.

He notes that the Commission has the legal right to make a one-year settlement, in addition to six months as a procedural period, and is keen to provide all means of assistance to the violators to overcome their ordeal and resort to implementation only in the most limited manner. It depends on the creditor's flexibility and understanding of the importance of settlement and taking into account the circumstances of the debtor, especially if they are beyond his control.

As for the ambiguity of bank contracts, whether in terms of loans or bank cards, Zarouni explained that there are vague terms, which are understood only by specialists, so that the judges themselves use accounting experts to explain them when they are received, so there is a clear clear model explaining the terms and conditions of the contract. Would also benefit the bank.

And reveals some of the mistakes that the debtors are making during the settlement. They pay the bank directly and come to the courts with a paper stating that it is difficult to rely on this document. .

He points to the need to establish sections for the settlement of banks, because the troubled citizen dies between branches and employees, and this problem avoided by the Committee of «courts of good» when conducting a settlement with banks, because they negotiate with the person directly concerned, so some believe that banks intransigent with them, Courts, but the problem is only coordination and procedures.

"The citizen or the borrower should read the contract and understand it. Some people come to the court to protest that the amount claimed is not the one that signed it at the time of the contract, Did not focus on the terms of the delay penalties ».

"In the end you can not blame the bank because it wants its money, and does not care much about the circumstances that have taken place on the borrower," pointing out that the committee stick stick from the middle, and speaks clearly to the parties, and reach a compromise, The problem is before it enters into litigation through the Settlement Department. In the end, the problem occurs as a result of accumulated mistakes, starting with an unsecured loan, a credit card and a personal debt.

He explains that the "good courts" intervene in favor of people who make sure they are completely unable to pay, do not own assets that can be sold, and take into consideration the living conditions of the employee, so that he can not deduct more than a quarter of his salary so that he can support himself and his family.

Unfortunately, there are many cases of disabled people who have borrowed for recreational purposes, such as tourism loans, luxury car purchases, and even some who seek to perform cosmetic surgery (Hollywood Smile), hair transplantation, and ultimately not The bank cares for the purpose of the loan, and does not ask about the area of ​​spending.

This is evident from the excessive number of mobile phone users, especially roaming while abroad, with huge bills sometimes amounting to 50,000 dirhams per trip. There are many issues for citizens who have failed to pay their phone bills, and companies are only interested in profit.

"The banks are not in their interest to rush to court because they realize that the case will take time, as well as the fees and fees, so they try with the person more than once, and when they fail, they have to sue."

Many people do not realize the consequences of their misuse, they commit a major sin by withdrawing cash from them, without realizing that the benefits accrue to them daily, and also when they pay only the minimum amount of due dues on purchases. Few at first, but they are later surprised by its consequences.

"The man is a sergeant, and most of the cases registered with the committee are old, with years of stumbling and failure. The citizen is aware of the consequences of his decisions only late, like a young man who does not care at the beginning of his life for traffic violations. He knows that he is suffering large losses because of his behavior. This is the case for borrowers who know their mistakes late, and sometimes they can not remedy them. He pointed out that any of us can buy a car for 50 or 500 thousand dirhams, but before making this decision he must review his accounts and realize that the luxury surrounding him Maybe it does not fit.

A woman deplores the intervention of the "courts of good" to pay her dues in her troubled divorce

Legitimate expenses are a heavy stone in the necks of citizens

Chairman of the Committee of Good Courts, Judge Abdulrahman Al-Emadi, revealed that there is a proposal to amend the divorce procedures, so that the parties have a longer period of thinking, as the speed of divorce, according to the current practice, carries heavy burdens on citizens. Thousand dirham and more.

He explained that the law currently in force allows women to obtain a divorce as soon as the damage is proven, even if it is simple, which closes the door to the possibility of reaching solutions. He pointed out that stubbornness and persistence sometimes reach the point of bad. And one of them said in one case: "Why do you pay for him?" In another case, the father of a woman who refused to pay the courts of good offered his daughter's dues, saying, "Why do not you leave him in prison?"

He pointed out that the problem begins when the wife gets a large dues, including housing, personal expenses and expenses of children and schools. The husband finds himself asking for an amount that may exceed his salary. He asks for the payment of the total dues and accumulates the demands. He hopes that the proposed amendment will limit these problems. .

Judge Ahmad Al-Hajj said that the nature of UAE society imposes on the husband the obligation to pay all the expenses that he paid during his marriage to his employer and doubles his problems when he has another wife, pointing out that the wife is finally sorry, especially if divorce occurred after the birth of four or five children, He who bears the burdens other than the father.

He added that saving the house only breaks the man, which reaches annually to 250 thousand dirhams sometimes, and by virtue of the nature of society, some are committed to pay the salary of the driver and maid, as well as the expense of children, and breastfeeding if he has a baby, pointing out that this matter deserves a quick pause.

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