• Credit card and loan default

I was working in dubai for 8yrs and in april 2016 i lost job due to market situation. I was unable to pay outstanding of loan and card and i returned to india. I received call from collection agency for the payment and they were threatning to implement travel ban and passport cancellation along with criminal case. Card and loan was issued in the uae by uae bank. I want to know what could be the consequences of that as they are continuously harrasing and i am unable to find a job at the moment.
Asked 5 months ago in Civil Law from Gaya, Bihar
1) request bank to reschedule your loan as you are unable to pay as you lost your job 

2) in case they threaten you file complaint of criminal intimidation under section 506 of IPC against the recovery agents 

3) your passport cannot be cancelled merely because case is filed against you 
Ajay Sethi
Advocate, Mumbai
26012 Answers
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1) if bank wants to recover its money it will reschedule your loan 

2) your loan agreement must be containing a clause that in event of disputes shall be subject to jurisdiction of courts at UAE only 
Ajay Sethi
Advocate, Mumbai
26012 Answers
1414 Consultations
5.0 on 5.0
1. These are hollow but common threats that are held out to the debtors by collection agencies and the banks. No court would issue orders to impound passport in a petty case like this. The maximum which the bank can do is file a suit for recovery of money against you in India, which you may contest. 

2. File a police complaint for criminal intimidation against the collection agency/
Ashish Davessar
Advocate, Jaipur
19108 Answers
484 Consultations
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For having availed loan, it becomes your duty to repay the same.  
You cannot escape the legal liability.
If you do not respond to their demand to repay the loan amount, they may initiate suitable action for banning your entry into that country owing to your irresponsible attitude and cheating character by which you have cheated the bank by not repaying the loan.
A criminal complaint agaisnt you may put inside the prison sooner you land in that country once again seeking employment opportunity.
Better write to the bank explaining your current poor financial and helpless condition and can assure that you shall repay the same soon by buying time from them for repayment.
Legally they cannot do anything while in India  but this cannot be a permanent solution to your crisis. 
T Kalaiselvan
Advocate, Vellore
16367 Answers
153 Consultations
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ne more question. Can they take any legal action against me in India? As i havent avail any banking facility from indian bank. I have asked the bank to provide me emi facility but as of now i am unemployed.

They may file a money recovery suit against you in India through their agency or authorised representative, but they cannot initiate any criminal action or case against you in this regard in India. 
T Kalaiselvan
Advocate, Vellore
16367 Answers
153 Consultations
5.0 on 5.0

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