In the modern era, debt is indeed not a sin at all. People use to owe debt while taking initiative, like beginning a startup. Even billionaires opt for debt when they start a new venture. Debt is actually a financial requirement on a person or an organization against received cheques, products, taken a loan or any other legitimate responsibility that has value to money. having debt is not bad at all unless it reaches a point of disagreement. Missing Installments bounced cheques, delay in returning loans and settlement on markups and pending medical or other service bills are those matters that will create defaulter status for the debtor. The process starts when a creditor hires a debt collection agency to assist them in acquiring their outstanding debts.
Debt Collection in the UAE
The debt collection UAE laws are not very much complex. It can be very demanding for creditors to recover the bad debt in Dubai. It is because in the UAE there is no particular courts for financial legal proceeding and the debt collection lawyer has to present to the case in the civil courts. The global debt recovery index also shows UAE among the top 3 countries which present horrible rate of debt collection. The remaining two countries are Saudi Arabia and Malaysia.
Reason for horrible results in UAE
Debt Collection Dubai processes can be complex for various reasons. The lack of specialized financial litigation courts leaves it only to the Federal Supreme Court or the Court of Cassation to ultimately determine the claims of the creditor next to the debtor. The institutions and their sub institutions operate under civil laws mutually. Apart from the local rules and regulations, payment practices, and liquidation proceedings are the other main factors that make debt collection in UAE a challenge.
Tradition of debt collection in the UAE?
Though UAE law is emerging itself towards distinction in executing commercial laws but getting into legal procedures is not much preferential for debt collection. This is not just in UAE but everywhere else that the creditor will come to courts for the recovery of his outstanding debt. Debt collection agencies make the process of debt collection more speedy, more responsive in terms of collection and economic as well as they normally use to bypass the expenses of legal proceedings by avoiding courts..