Because you were asked about your credit card balance, it is believed that you are closing your bank accounts and going back to your home country for good, with no plans to come back to the UAE on a residency visa. So, the rules in Notice No. 3692/2012 from the Central Bank of the UAE about General Terms and Conditions and Loan Agreements texts written by the Emirates Bank Association and accepted by them apply.
In the United Arab Emirates (UAE), the inclusion of a credit card service offered by a financial institution to an individual who borrows money may be subject to the regulations and guidelines that regulate the terms and conditions of a personal loan. When a lender grants a credit card facility to a borrower, it is common practice for the lender to acquire a signed loan agreement or application form from the borrower. This document outlines the terms and circumstances that pertain to the credit card facility.
An individual who possesses a credit card and neglects to make three consecutive monthly payments or six non-consecutive payments may be deemed to have defaulted on their credit card obligations. The statement provided aligns with the provisions outlined in Article 4(4) of the Personal Loan Agreement format as approved by the Central Bank of UAE.
Credit Card Dues as per UAE Law
As per this article, it is stipulated that in the event of the borrower’s failure to make payment for three consecutive instalments or six non-consecutive instalments of the monthly instalments without the bank’s approval, the loan will expire and all outstanding instalments, interests, fees, and expenses will become immediately due and payable.
This action can be taken without the requirement of any prior notification or court ruling, and it does not prejudice any other rights of the bank as specified in the agreement or as provided by the law.
In accordance with the aforementioned statutory rule, it is incumbent upon you to fulfill your obligation of repaying the installments that are owed to the lender. In the event that a borrower fails to make timely payments on their credit card instalments, the lender reserves the right to initiate legal proceedings in a civil court in order to retrieve the remaining debt amount along with associated expenses.
In the event that the final verdict does not rule in your favor, the lender retains the right to initiate execution proceedings against you, which may encompass a petition for the imposition of a travel restriction and the issuance of an arrest order against you.
Hence, when embarking on a journey beyond the borders of the United Arab Emirates, it is advisable to contact the creditor from whom you obtained the credit card service. This communication should entail notifying the creditor of your intention to go beyond the UAE and the subsequent absence of plans to return to the country. Additionally, it is advisable to notify the lender of your intention to swiftly fulfill the credit card payments on or before to the designated deadline while residing in your country of origin.
In light of the aforementioned, the lender may provide guidance regarding the payment alternatives pertaining to installments that are to be remitted, should the lender approve your proposition to settle the outstanding sums from your place of residence.
One has the option to remit credit card installments to the designated credit card account or card number by utilizing their domestic bank account. Alternatively, one option available to you is to make a telegraphic transfer (TT) from a bank or financial institution in your country of residence to the credit card account or card number, and afterwards inform your lender of this transaction.
In addition, it is advisable to acquire a clearance letter or no-due certificate from the lender subsequent to the complete settlement of any outstanding instalments associated with the credit card facility obtained from said lender.