Debt Collectors in UAE: How to Stop Harassment & Verify Debt

What laws in the UAE protect you from debt collector harassment?

The UAE protects consumers through the Central Bank Consumer Protection Regulation and Standards, which require fair treatment and prohibit harassment and disclosure. The Penal Code and Cybercrime law also prohibit threats, extortion, insults, and misuse of personal data, while the UAE Data Protection Law restricts unlawful sharing of your information.

• Central Bank of the UAE - Consumer Protection Regulation and Standards: Banks and their agents must act fairly, communicate accurately, respect your privacy, and avoid aggressive or oppressive practices. They must have complaint units and respond within set timelines.
• Federal Decree-Law on Crimes and Penalties: Threats, extortion, defamation, and insults are criminal offenses. Collectors cannot threaten harm, defame you, or use abusive language.
• Federal Decree-Law on Combating Rumors and Cybercrimes: Threats, harassment, or publishing private information via electronic means is illegal.
• Federal Decree-Law on the Protection of Personal Data: Processing personal data must be lawful, transparent, and limited to the purpose; disclosing your debt to your employer or family without legal basis can be unlawful.
• Relevant civil codes and court practices: Creditors must use lawful channels to enforce debts - court claims, payment orders, and approved settlement processes - not intimidation or public shaming.

What counts as illegal harassment by debt collectors in the UAE?

Harassment includes repeated or aggressive calls, threats of criminal action where none applies, contacting your employer or family to pressure you, or sharing your debt details without a legal basis. Reasonable attempts to collect and negotiate, made at sensible times and through agreed channels, are allowed.

• Likely unlawful or abusive:
  • Threatening arrest or police for unpaid loans or credit cards where there is no fraud or criminal element
  • Using obscene or insulting language, shaming you on social media, or sending messages to workplace groups
  • Calling excessively or late at night after you have asked to limit contact hours
  • Disclosing your debt to your employer, colleagues, or family without a court order or your consent
  • Falsely claiming to be a government authority or court officer
• Generally allowed if done fairly:
  • Calling you to request payment or discuss restructuring during reasonable hours
  • Sending written reminders, default notices, and settlement offers
  • Issuing a formal demand letter or filing a civil case to recover the debt

How can you make a debt collector stop contacting you?

Send a written request setting contact rules: ask them to communicate only in writing, limit hours, and stop contacting your employer or family. Keep a log, block abusive numbers, and escalate with a formal complaint if they ignore your request.

1. Write a contact directive
   • State you dispute or are reviewing the debt
   • Request written-only communication to your email or mailing address
   • Specify acceptable hours (for example 9:00-18:00 Gulf Standard Time)
   • Prohibit contact to your workplace, employer, or relatives
2. Keep records
   • Log date, time, number, and content of calls or messages
   • Save screenshots and voicemails, especially threats or insults
3. Block and filter
   • Use phone settings to block numbers and report abusive WhatsApp messages
   • Ask your HR to block unknown callers if calls come to your office line
4. Escalate complaints
   • File a written complaint with the bank’s complaints unit and ask for a case number
   • If unresolved, escalate to the Central Bank’s Consumer Protection portal
5. If you receive threats or defamation
   • File a police report with your evidence
   • Seek legal advice on a criminal complaint for threats, defamation, or data misuse

Copy-paste template - contact directive

Subject: Communication and Verification Request - Account [last 4 digits]

I am reviewing this alleged debt. Please send all communications in writing to [email]. Do not call me at work or contact my employer, family, or colleagues. Contact only between 09:00 and 18:00 GST. Provide within 7 days: an itemized statement, a copy of the signed agreement, and written proof of your authority to collect. Until then, pause collection activity. Regards, [Name], [Mobile], [ID or account ref]

How do you verify that a debt is real and the amount is correct?

Ask for a full breakdown and supporting documents before you pay or agree to a plan. Request a pause in collection while you review the documents.

1. Request the following documents
   • Statement of account showing principal, interest, fees, and payments
   • Copy of the signed loan or card agreement and any addenda
   • Interest rate, default interest, and fee schedule applied over time
   • If a third-party collector: written authorization from the bank or assignment notice
   • For cheques: copy of any returned cheque and bank memos
2. Cross-check with your Al Etihad Credit Bureau (AECB) report
   • Get your report and score from AECB - around AED 84 each
   • Compare reported balances and delinquency dates
   • Dispute any inaccuracies through AECB’s dispute channel
3. Review the numbers
   • Check if interest continued after charge-off or closure and whether the contract allows it
   • Verify any insurance, late fees, or collection fees are permitted under the contract or law
   • For Islamic finance, confirm profit calculation and early settlement formulas
4. Ask for a temporary hold
   • There is no fixed statutory validation window, but you can request a 7-14 day hold
   • Reasonable banks and agencies will pause while they compile documents

Who is allowed to collect your debt and what documents can you demand?

Banks can collect directly or through licensed agencies. You can demand written proof that the agency is authorized or that the debt was assigned to it.

• If a bank is collecting
  • Ask for a letter on bank letterhead confirming the account reference and outstanding amount
  • Request the bank’s complaints unit contact to escalate issues
• If a third-party collector is contacting you
  • Ask for the trade license copy of the agency and the bank’s authorization letter stating your account details
  • If the debt was sold, request a notice of assignment and the new creditor’s details
  • Refuse to pay cash. Pay by traceable bank transfer to an account in the creditor’s or authorized agent’s name
• Power of attorney and ID
  • Collectors asking for payment should present an authorization or power of attorney
  • Record the collector’s full name, company, and contact details

Can collectors contact your employer or family in the UAE?

Collectors should not contact your employer or family to pressure you or disclose your debt unless there is a legal basis such as a court order. Unlawful disclosure or defamation can lead to complaints and criminal liability.

• Privacy and data protection
  • Sharing your financial information with third parties without a lawful basis can violate the UAE Data Protection Law
  • Tell the collector in writing not to contact your employer or relatives
• Defamation and cyber offenses
  • Messages that insult, shame, or spread allegations to your employer, colleagues, or social media groups can be criminal
  • Keep screenshots and file a police report if this occurs
• Employer references
  • Banks often ask for employer letters during loan origination, but this does not authorize harassment or disclosure
  • If a court issues an order, your employer may be contacted for salary attachment according to court procedures, not by collectors

How do you file a complaint against a bank or collector in the UAE?

Complain to the bank first and ask for a reference number. If unresolved, escalate to the Central Bank’s Consumer Protection portal with your evidence.

1. Step 1 - Bank complaint
   • Email the bank’s complaints unit or use its website form
   • Attach your call log, screenshots, and your contact directive. Ask for written confirmation they will respect your boundaries
   • Timeline: banks typically have up to 30 calendar days to resolve
2. Step 2 - Central Bank escalation
   • Use the Consumer Protection portal on the Central Bank of the UAE website
   • Provide your bank complaint reference, evidence of harassment, and the outcome you want
   • The Central Bank can direct the bank to fix issues and report back
3. Optional - Police report
   • For threats, defamation, or privacy violations, file a police complaint with your saved messages
   • Follow the police instructions for any criminal case
4. AECB dispute
   • If your credit report shows wrong data, open a dispute through AECB

How do banks enforce debts in the UAE and what risks should you expect?

Banks use civil court processes to recover debts, including payment orders, lawsuits, and attachment of assets and salary with a court order. Travel bans are possible by court order in some cases, but threats of immediate arrest for unpaid loans are generally false.

• Civil claim or payment order
  • Banks can file a payment order or ordinary claim in the civil courts of your emirate
  • You will receive a court notice - respond within the stated days or risk a default judgment
• Enforcement tools after judgment
  • Attachment of bank accounts, vehicles, or other assets
  • Salary garnishment via employer, within legal limits set by the court
  • Possible travel ban if the bank obtains a court order based on risk of absconding
• Bounced cheques
  • Many bounced cheque cases now result in administrative fines rather than criminal prosecution, but you may still face civil enforcement
• Credit impact
  • Defaults and judgments appear on your AECB report and reduce your score
  • Settlements should be updated to show resolved status - keep official settlement letters

How do you negotiate or settle debts with UAE banks and collectors?

Approach the bank with a clear budget and ask for a restructuring or settlement in writing. Get every agreement on bank letterhead and pay only through traceable channels.

1. Choose your strategy
   • Restructuring: longer term, reduced monthly installment, possible reduced rate
   • Consolidation: roll multiple debts into one loan with a single installment
   • Lump-sum settlement: pay a reduced amount to close the debt and update AECB
2. Prepare your file
   • Income and expense sheet with a realistic surplus
   • Verification documents requested above
   • Evidence of hardship: job loss, medical bills, relocation, or salary reduction
3. Negotiate terms
   • Target settlement ranges can be 20-60 percent off inflated balances, depending on account age and risk
   • Ask to freeze interest and stop collection during negotiations
   • For Islamic products, request Sharia-compliant early settlement calculation
4. Lock it down in writing
   • Get a settlement letter on letterhead stating amount, deadline, and that the account will be closed with no further claim
   • Include how the bank will update AECB and by when
5. Pay safely
   • Use bank transfer or cashier’s cheque to the creditor’s account
   • Obtain a no-liability or clearance letter after payment

What if you cannot pay at all - how does personal insolvency in the UAE work?

If you are insolvent, you can apply to the civil court under the Insolvency of Natural Persons law for a court-managed plan or liquidation. The court may grant a payment plan up to 3 years or liquidate non-essential assets for the benefit of creditors.

• Two tracks
  • Restructuring plan: a court-appointed expert helps you propose a plan to repay part of your debts over time, usually up to 3 years
  • Insolvency with liquidation: if no plan is possible, the court liquidates assets and distributes proceeds, then grants relief from remaining debts
• What you need
  • List of creditors, amounts, contracts, and statements
  • Income evidence, dependents, monthly budget, and assets list
  • Proof of hardship or default
• Effects and protections
  • The court can order a temporary stay on enforcement while it considers your case
  • You keep funds for basic living expenses as determined by the court
  • Creditors must follow the court process rather than harass you
• Timeline and cost
  • Preparation: 2-6 weeks to gather documents
  • Court review and plan proposal: typically a few months
  • Plan duration: up to 3 years
  • Costs: court and expert fees usually several thousand dirhams, plus legal fees if you hire a lawyer
• Outcomes
  • On successful completion of the plan or liquidation, remaining eligible debts are discharged
  • Your credit report will reflect the insolvency and later the discharge

How much will it cost and how long could this take in the UAE?

Getting organized is quick, but formal processes can take weeks to months. Costs vary by emirate and complexity.

What documents should you keep and how should you organize your case?

Create a single folder with contracts, statements, and a call log. Organized records strengthen complaints, negotiations, and any court filing.

• Identity and contact
  • Passport copy, Emirates ID, proof of address
• Debt file
  • Loan or card agreements, statements, demand letters, settlement offers
  • Screenshots of harassment, call logs, and your contact directive
• Financial file
  • Salary certificates, bank statements for 6-12 months, rent contract, utility bills
  • Budget showing essential expenses and dependents
• Credit report
  • Latest AECB report and any disputes filed

What are common mistakes to avoid with UAE debt collectors?

Avoid verbal-only deals, cash payments, and admitting liability before verification. Do not ignore court notices or police summons.

• Paying without a written settlement letter or correct beneficiary details
• Sharing your employer’s contact when you have set boundaries
• Admitting the full claimed balance before you check fees and interest
• Missing court deadlines on payment orders or lawsuits
• Posting about the dispute publicly, which can escalate and harm your case

When should you hire a lawyer or expert in the UAE?

Engage a lawyer when you receive court papers, face threats of travel bans, plan to file insolvency, or are negotiating high-value settlements. A specialist can stop harassment and structure a safe deal.

• You received a court notice, payment order, or execution notice
• The collector threatened criminal action or defamed you
• Your total unsecured debt exceeds AED 100,000 and you need insolvency advice
• You have multiple creditors and need a coordinated restructuring plan
• You want a settlement letter that fully releases you and properly updates AECB

Next steps: what should you do today?

Set boundaries, verify the debt, and take control of the process. Use the steps below to stop harassment and move toward a practical solution.

1. Send the contact directive and verification request to the collector or bank
2. Order your AECB credit report and compare balances
3. Build a monthly budget and decide your negotiation or restructuring options
4. Open a bank complaint if harassment continues, then escalate to the Central Bank portal
5. If you cannot pay, book a consultation about personal insolvency and gather documents
6. When you settle or restructure, get everything in writing and keep your clearance letter