UAE debt in UK

[Rubble72]

Hi team

 

can anyone please help with an email I have received from CWD on behalf of a UAE credit card. What do I do next? Has anyone ever gone down the IVA through with these guys?

 

Many thanks in advance

 

Rubs

[Rubble72]

 

Hi Lil21

 

did you make any progress with CWD?

 

Best regards

 

Rubs

[unclebulgaria67]

Why an email ? Do they not have your UK postal address ?

 

You don't respond to an email and should wait for a letter through the post. Then write back asking for evidence of the debt, a copy of any agreement that exists together with terms/conditions and confirmation from the creditor that CWD have been instructed by them.

 

Do not admit the debt or consider any insolvency solution yet. Get them to disclose more information as suggested and once you have that, then obtain further advice. The debt charity Stepchange can probably find out whether you qualify for any debt solution that can include a foreign debt and what the consequences are if you went down that route.

 

In another case reported on here, a Solicitors dealing with foreign debt did eventually issue a court claim, but they gave up when the defendant asked for mediation. They appear to like easy wins, where people don't defend court claims or admit to owing tbe debt. So don't throw in the towel at this early stage.

[Rubble72]

Thanks UB. You are very helpful. I have just got the letter.

 

I will write back asking for more information...signed for post...! Mediation sounds interesting, I'll look into it.

 

I'll keep the forum up.

 

Kind regards

 

Rubs

[unclebulgaria67]

Thanks UB. You are very helpful. I have just got the letter.

 

I will write back asking for more information...signed for post...! Mediation sounds interesting, I'll look into it.

 

I'll keep the forum up.

 

Kind regards

 

Rubs

 

I get the impression that CWD are on some deal with these Dubai Banks, but they will only pursue if is worth it to them in doing so. They don't want to get to a position where they get a CCJ, but payment is made by instalments over a long period. Some came back from abroad with little assets or money to pay foreign creditors.

 

Nb. Correction. The mediation debt was actually an Aussie debt by another Solicitors. But if they take the same view, they might not want to discuss throught mediation any issues with a foreign Bank.

[renegadeimp]

Dont contact them and dont agree to anything. Wait for them to send a letter in the post. They have absolutely no idea if that email is still being used. It's a phishing attempt. If you contact them when all you have recieved is an email, they are going to think " Gotcha. Time to reel him in".

[Rubble72]

Hi renegadeimp

 

I have rec'd a letter.

 

Kind regards

 

Mark

[renegadeimp]

Sorry if i misread your post. Can you scan it up, minus any personal identifiers or reference numbers.

[Rubble72]

Here's a sanitised version:

 

"We have been instructed by our client to engage with you

and to make arrangements for the repayment of your credit card debt to our client.

 

We hope that you will engage with us for this purpose.

If you do not, then we have instructions to commence legal proceedings against you which,

regrettably but inevitably,

will result in your liability increasing by reason of the contractual costs indemnity (“the Costs Indemnity”)

which was agreed in writing with our client when you applied for (and obtained) your banking facilities.

 

 

In terms of prospective legal proceedings,

 

 

please note that our client’s position is fully reserved in terms of the choice between:

 

(a) Debt recovery proceedings to be issued before Northampton (CCMCC) county court; or

 

(b) Bankruptcy proceedings to be issued before the nearest County Court to your home with insolvency jurisdiction.

Regardless of the above choice of legal forum (and whilst stressing again that we hope court proceedings

can be avoided through engagement and negotiation) we ought to clear up a common misconception

which has arisen in the course of our debt recovery work for this client

and for numerous other client banks operating within the UAE.

 

Whilst the terms under which you are indebted to our client are governed by the laws of the UAE,

our client is free to (and does) pursue legal proceedings in numerous jurisdictions around the world.

 

 

An express term within the contractual terms and conditions to which you signed up

and agreed states that no single court (whether in the UAE or elsewhere) has “exclusive” jurisdiction to determine these credit card debt claims.

 

 

Based on expert evidence given on the applicable laws of the UAE by Baker & McKenzie Habib Al Mulla (leading lawyers in the UAE)

we are currently securing an average of ten judgments each month before Northampton (CCMCC) County Court.

 

In relation to your indebtedness,

we have satisfied ourselves that your liability to our client is immediately due

and owing and, as such, legal proceedings can be commenced in the UK at any time

 

.However, as we have stated, we hope that legal proceedings can be avoided and that,

instead, you will engage with us and agree to the repayment of your liability.

 

 

To this end, we are able to give you 21 days from the date of this letter to make proposals to repay your debt which currently stands at AED XXXXXX .

 

 

If the above indebtedness is paid in full to our client within 21 days, then no additional liability for our legal costs will arise under the Costs Indemnity.

 

However, this concession will only be made available to you on these terms and for this period

– so without operating in any way as a waiver to the terms of the Costs Indemnity.

 

 

Beyond this 21 day period, but before legal proceedings are commenced,

a fixed legal charge of £xxxx will be applied to your account.

 

 

Once Proceedings are commenced; legal costs are charged on a “time spent basis” with court fees

and disbursements added to our time charges as and when they are occurred

 

Please note that all settlement monies need to be paid in Dirhams to our client directly.

 

 

Companies such as Western Union can make the necessary arrangements on your behalf once settlement terms are agreed.

 

 

When this stage is reached we will provide you with necessary account details within our clients debt recover operation in Dubai."

 

 

Hope this helps team

 

Rubble72

[unclebulgaria67]

If you have no assets or much ability to pay, once they have provided the documents to prove the debt, you could enter into making affordable payments. You could make the offer to CWD and they will find it difficult to reject. It might save hassle of dealing with court claims and they might just decide that they cannot be bothered in receiving small monthly amounts.

[andydd]

Cost Indemity clauses for cards are unusual ?

 

These would in theory allow the card company to recover its legal costs even if claim was in a small claim court and in theory even if they lost, these costs could be very large and greater than the actual debt.

[Rubble72]

I intend to pay this back but won't be able to do it all at once, hence my IVA comment.

[unclebulgaria67]

I intend to pay this back but won't be able to do it all at once, hence my IVA comment.

 

You would need to speak to debt advisors such as Stepchange and they can confirm the position.

 

I should imagine that CWD might not be very keen, once they realise you cannot pay or only in small amounts.

 

Sounds like they are mostly interested in fees and not administering payment arrangements.

[Rubble72]

There are some assets so that's why I was worried they will just go straight for proceedings, hence DM plan, IVA etc. I'll talk thru with Stepchange