Debt collection is a vital aspect of the financial system in the UAE, ensuring the recovery of outstanding payments. However, there are instances were debt collection practices cross ethical or legal boundaries, leading to harassment. Such behavior not only disrupts the lives of individuals but also causes significant stress and anxiety. If you are facing such a situation, it is crucial to understand your rights, the legal protections in place, and the steps you can take to protect yourself.
Understanding Debt Collector Harassment
Debt collector harassment occurs when collectors adopt practices that go beyond what is legally or ethically acceptable. This could involve relentless phone calls, intimidating language, or actions that breach your privacy. Such behavior creates an atmosphere of fear and stress, far removed from what is lawful or fair.
For example, debt collectors may repeatedly call you, use offensive language, or contact you at inappropriate times, such as late at night. Some may even disclose your financial information to your family or colleagues without your consent. Others might resort to false claims about legal consequences or use misleading tactics to pressure you into making payments.
While debt collection itself is a legitimate process, it is essential to recognize when these practices cross the line and become harassment.
The Legal Framework in the UAE
The UAE has established clear legal protections to safeguard individuals from abusive debt collection practices. Several laws and regulations define the boundaries within which debt collectors must operate, ensuring fairness and respect for debtors.
Consumer Protection Regulations by the UAE Central Bank: These regulations prohibit financial institutions and their agents from engaging in abusive or unethical debt collection practices. They emphasize transparency and fairness in dealing with customers.
Code of Conduct for Financial Institutions: Under Decree No. 2 of 2013, financial institutions are bound by ethical standards that prioritize respectful and professional behaviour in debt collection practices.
Federal Decree-Law No. (15) of 2024 on the Collection of Debts of Federal Entities: This recent law provides a standardized framework for the collection of debts owed to federal entities. It ensures that creditors and debtors are treated fairly while streamlining the recovery process.
Together, these laws aim to create a balance between the rights of creditors and the dignity of debtors, ensuring that the debt collection process remains ethical and professional.
Your Rights as a Debtor
As a debtor in the UAE, you have several rights designed to protect you from unethical debt collection practices. These rights ensure that you are treated with dignity and respect throughout the process.
Firstly, you have the right to privacy. Your financial matters are confidential and cannot be disclosed to third parties without your consent. You also have the right to dispute the debt if you believe it is incorrect or unjust.
Debt collectors are obligated to provide clear and accurate information about the debt, including its origin and the total amount owed. If you have legal representation, you can direct all communication to your lawyer, shielding yourself from direct interactions with collectors.
Above all, you have the right to be treated respectfully. Any behavior that is abusive, threatening, or deceptive is a violation of your rights.
Steps to Take When Facing Harassment
If you are being harassed by a debt collector, there are practical steps you can take to protect yourself. Start by documenting all interactions. Keep a record of phone calls, emails, or text messages. This documentation can serve as evidence if you need to take further action.
You can also request that all communication be made in writing. This reduces the likelihood of verbal abuse or harassment and creates a paper trail for reference. Additionally, verify the debt by asking for written confirmation of the amount owed and its origin. If the harassment persists, you may consider sending a formal legal notice to the debt collector. For more serious cases, a formal complaint can be filed with the Consumer Protection Department.
The Consequences for Abusive Debt Collectors
Debt collectors who engage in unethical or illegal practices can face significant consequences. Regulatory authorities in the UAE take such violations seriously. Penalties may include fines, license suspensions, or even criminal proceedings in cases of threats, defamation, or breaches of privacy. These measures reflect the UAE’s commitment to maintaining ethical practices and protecting the dignity and well-being of its residents.
Conclusion
Debt collector harassment can be a stressful and overwhelming experience, but it’s essential to know that there are laws in place to protect your rights. By understanding your rights, documenting interactions, and taking proactive steps, you can safeguard yourself from unethical
practices.
If the harassment continues despite your efforts to resolve the issue, don’t hesitate to reach out to us. Our experienced lawyers can guide you through the complexities of debt collection laws in the UAE and ensure your rights are fully protected. Contact us today to schedule a consultation and take the first step toward resolving the situation.
Having said that, Contact Khairallah Advocates & Legal Consultants and benefit from our free 30-min legal consultation.
*Disclaimer: our blogs, law updates and FAQ’s are freely distributed for educational purposes and to showcase recent updates and regulations in the UAE’s framework.
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