Credit card defaulters of the day, Dubai edition
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The flipside of all those abandoned cars at Dubai airport — assets left behind by foreigners leaving the country for good — is the abandoned liabilities they’ve left behind on their credit cards:
Some UAE banks are seeing up to 2,500 customers leave the country every month without paying off their credit card bills, a number that could rise in June, a senior RAK Bank official said on Sunday…
RAK Bank recovers around a quarter of the debt that goes unpaid as a result of one of the customers leaving the country, Martin said.
I’m surprised the recovery rate in these cases is as high as 25%, frankly: chasing down debtors who live abroad is non-trivial and always expensive. But then again, I’m sure that many of the credit card balances in question are pretty enormous: as Julie Sherrier notes, Dubai is known as something of a shoppers’ paradise. If the credit card debt rises into six figures, which I’m sure it does on occasion, it’s be worth fighting for.
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Credit card defaulting is not the wish of any bank customer who has spent the full limit on the card in UAE. New bank customers who cash the whole amount on their cards and leave the country immediately are the ones the bank should have tough measures on. In some cases, customers have left small amounts on their cards and due to job loss, expensive housing and life in general find they only have to leave the country as the little they are having at hand after a job loss cannot sustain them whatsoever. The reason as to why a bank can get working visas rejected for defaulting customers is never understood because how will they ever make it to repay their debts. Some one better get reality working to these kind of banks. Have a day free of debts!!