Do you need a corporate lawyer Dubai to help you understand debt collection? If yes, you better read this post.
According to statistics, almost 50% of the UAE residents are in debt and a significant number of them are actively looking for a loan. Not only that, but even those who are not in debt are unable to save money and find themselves in danger of being part of the statistics.
In Dubai, the story is not any different. Chances are, you might even know of someone right now who are in debt. If you fail to pay your loan, lenders will hire debt collectors and do their best to get their money back. Whether it is you or a family member, it is a must that you know how debt collection in Dubai works.
A debt collection agency is hired by lenders to help them collect debts from individuals or businesses. In Dubai, commercial debt collection or recovery is a thriving economy. With more and more people are getting in debt, the service of debt collection agencies has become indispensable. Along with this, legal services Dubai have also sought after.
A debt collection agency has the right lawyers and professionals who have the skills, experience, and knowledge on how to deal with different situations involving debts.
In a lender-borrower relationship, the first party is the lender and the second party is the borrower. In Dubai, debt recovery agencies are broadly categorized into two:
Debt collectors are good at what they do. They have the necessary network to track down borrowers, analyze their assets, and identify the best way to recover unpaid funds. They would also hire lawyers in UAE to get more legal backing.
In Dubai, there are different ways on how debt collectors work. These are some of them:
Motei and Associates, one of the trusted law firms in Dubai, UAE, who have the expertise and experience to help you deal with debt collection. They assess your unique situation and provide the best solution possible.
Source:https://uaelawfirms.wordpress.com
According to statistics, almost 50% of the UAE residents are in debt and a significant number of them are actively looking for a loan. Not only that, but even those who are not in debt are unable to save money and find themselves in danger of being part of the statistics.
In Dubai, the story is not any different. Chances are, you might even know of someone right now who are in debt. If you fail to pay your loan, lenders will hire debt collectors and do their best to get their money back. Whether it is you or a family member, it is a must that you know how debt collection in Dubai works.
What are debt collection agencies?
A debt collection agency is hired by lenders to help them collect debts from individuals or businesses. In Dubai, commercial debt collection or recovery is a thriving economy. With more and more people are getting in debt, the service of debt collection agencies has become indispensable. Along with this, legal services Dubai have also sought after.
A debt collection agency has the right lawyers and professionals who have the skills, experience, and knowledge on how to deal with different situations involving debts.
Two types of debt recovery agencies
In a lender-borrower relationship, the first party is the lender and the second party is the borrower. In Dubai, debt recovery agencies are broadly categorized into two:
- First-party agency – in most cases, a lending company has their special group of people who specialize in collecting debts. Since these people are still part of the lending company, they are considered as a first-party agency.
- Third-party agency – when the lending company exhausted all possible means to collect a debt, they will now hire a third party agency. In most cases, the third party agency is considered as a last resort and thus, borrowers can expect that they will do their best to get back the money.
How do debt collectors work?
Debt collectors are good at what they do. They have the necessary network to track down borrowers, analyze their assets, and identify the best way to recover unpaid funds. They would also hire lawyers in UAE to get more legal backing.
In Dubai, there are different ways on how debt collectors work. These are some of them:
- Attachment – debt collectors identify land, house, vehicle or other property and consider them as a way to pay off debt.
- Levies – debt collectors identify savings account of the debtors and serve a levy to the bank. As a result, the account will then be frozen for typically 21 days until the debtor can justify the due debt.
- Wage garnishment – this works well if the debtor is employed. Debt collectors directly get in touch with the debtor’s employers and deduct the due payment from the salary.
Motei and Associates, one of the trusted law firms in Dubai, UAE, who have the expertise and experience to help you deal with debt collection. They assess your unique situation and provide the best solution possible.
Source:https://uaelawfirms.wordpress.com
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