Debt collection in the UAE follows clear rules set by federal laws and Central Bank regulations. These rules outline what debt collection agencies can do, the limits they must follow, and the rights that debtors and creditors hold. With new updates in recent years—especially Federal Decree-Law No. 15 of 2024, the Civil Procedures Code, and the UAE Consumer Protection frameworks—the system is more structured than ever.
Whether you’re dealing with unpaid invoices, credit card arrears, or overdue personal loans, understanding the legal framework helps you avoid mistakes and stay protected. This guide explains UAE debt collection agency laws in simple language, covering legal responsibilities, prohibited actions, licensing rules, and what to expect if a debt reaches the enforcement stage.
What Are Debt Collection Agency Laws in the UAE?
Debt collection agency laws in the UAE define how private firms and banks can recover unpaid debts. These rules ensure:
- Proper conduct
- Fair treatment for debtors
- Safe communication methods
- Transparency in all notices and demands
- Accurate documentation
- Protection of personal data
Unlike some countries, the UAE separates federal entity debt collection and private sector debt collection.
For government-related debts
The rules come from:
- Federal Decree-Law No. 15 of 2024
- Civil Procedures Code 2022
These laws regulate how federal entities collect overdue funds, issue notices, and enforce payment orders.
For private debts (banks, finance firms, agencies)
The laws come from:
- UAE Central Bank Consumer Protection Regulation (2020) and Rulebook
- Civil Transactions Law
- Civil Procedure Law
- Personal Insolvency Law
- Commercial Transactions Law
Together, these laws define exactly how a debt collector must act when contacting a debtor.
Legal Framework Governing Debt Collection Firms in the UAE
Debt recovery in the UAE is guided by multiple laws. Here is what each one covers.
Federal Decree-Law No. 15 of 2024 (Government Debts)
This law focuses on debts owed to federal entities. It sets rules for:
- Debt notifications
- Delivery of notices
- Written decisions
- Enforcement
- Travel bans and precautionary measures
- Installment approvals
- Outsourcing debt collection to licensed firms
Even though it targets federal entities, some principles influence the private sector—especially in notification and enforcement.
Civil Transactions & Civil Procedure Code
These laws apply to private debts such as:
- Unpaid personal loans
- Commercial debts
- Credit card balances
- Service-based debts
- Written agreements
- Payment disputes
Key points include:
- Requirements for written proof of debt
- Steps for filing claims
- Notice periods
- Court timelines
- Enforcement methods
Central Bank Consumer Protection Regulations
This is the main rulebook for banks and their appointed collectors.
It includes strict requirements:
- Clear written notices after arrears reach 60 days
- Fair communication; no harassment
- No contacting debtors outside approved hours
- Written confirmation when a case is transferred to an external agency
- Confidentiality of personal data
- Accurate representation of the debt and legal options
Collectors must never:
- Mislead the debtor
- Threaten actions not allowed by law
- Disclose debt details to employers, family, or colleagues
Licensing Requirements for Debt Collection Firms
Debt collection agencies must:
- Be licensed to operate in the UAE
- Follow federal and emirate-level regulations
- Avoid receiving debt payments into personal accounts
- Maintain proper records
- Use approved communication channels
Unlicensed agencies are prohibited from carrying out debt recovery activities.
What Debt Collectors Can and Cannot Do Under UAE Law
Debt collection agencies in the UAE must follow strict guidelines to protect both creditors and debtors. These rules define acceptable conduct, proper communication, and legal limits.
Below is a clear breakdown based on the Central Bank Consumer Protection Rulebook, Civil Procedures Law, and related federal legislation.
What Debt Collectors Are Allowed to Do
1. Contact You During Legal Hours
Collectors can contact debtors between 9:00 AM and 8:00 PM through:
- Phone
- SMS
- Email
- Registered mail
Any communication outside these hours is not allowed.
2. Send Written Notices
Collectors may issue written reminders that include:
- Amount owed
- Due dates
- Creditor details
- Possible legal consequences
- How to reach the collections department
UAE law requires clear, factual information at all stages.
3. Offer Settlements or Payment Plans
Collectors can negotiate:
- Reduced settlement amounts
- Installment arrangements
- Partial payments
- New dates for repayment
However, all agreements must be written and traceable.
4. Verify the Debt Upon Request
Debtors have the right to ask for:
- Proof of the original debt
- Contract copies
- Statements
- Collector authorization
Collectors must provide documentation before proceeding.
5. Escalate to Legal Action (If Needed)
If amicable attempts fail, collectors can:
- File a payment order request
- File a civil case
- Request enforcement
Legal action must follow due process and requires written evidence.
What Debt Collectors Are NOT Allowed to Do
UAE law strictly forbids certain actions.
1. Harassment or Repeated Pressure
Collectors cannot:
- Call excessively
- Use threatening language
- Pressure family members
- Contact workplaces without consent
- Use aggressive tone
These actions can lead to Central Bank penalties or police complaints.
2. Share Your Information With Others
Debt details may not be discussed with:
- Employers
- Colleagues
- Friends
- Family members
Breach of privacy is a punishable offence.
3. Misrepresent Legal Consequences
Collectors cannot:
- Claim you will be jailed for civil debt
- Threaten asset seizure without a court order
- Suggest they can block your travel without a judicial decision
Only a UAE court can impose enforcement actions.
4. Visit Homes or Offices Without Permission
Physical visits require:
- Clear scheduling
- Written confirmation
- Approval from the debtor
Unapproved visits are prohibited under Central Bank rules.
5. Receive Payments Into Personal Accounts
Payments must be made only to:
- The original creditor
- A licensed agency’s authorized account
- Court execution department (after a judgment)
Any request for payment to a private bank account is not permitted.
6. Add Unauthorized Fees or Interest
Collectors cannot:
- Add extra charges
- Add hidden fees
- Inflate the amount owed
Only charges allowed in the contract or by UAE law may be applied.
Debt Collection Process Explained – UAE Method
Debt recovery in the UAE follows a set sequence. Below is a clear, practical breakdown of each stage.
Stage 1 — Initial Reminder
The creditor or bank sends an early reminder after:
- A missed payment
- A billing cycle without response
This stage often resolves the issue quickly.
Stage 2 — Formal Written Demand
If the debtor does not respond, the creditor issues a formal notice including:
- Total amount
- Payment deadline
- Evidence of the debt
- Possible next steps
The debtor is normally given a timeframe to respond or settle.
Stage 3 — Transfer to a Debt Collection Agency
If payments remain overdue, the creditor may appoint a licensed debt collection agency.
The agency must notify the debtor in writing and state:
- Their authorization
- Amount owed
- Contact details
- Payment options
Collectors must follow Central Bank rules at all times.
Stage 4 — Legal Action (If Needed)
Legal steps may include:
Payment Order Application
Used when:
- Debt is clear
- Evidence is strong
- The debtor was notified properly
Courts may issue a decision within a few business days.
Civil Claim
If the debt is disputed, a normal civil case is filed.
Parties exchange written submissions, evidence, and attend hearings.
Stage 5 — Enforcement
If a judgment is issued, enforcement may involve:
- Freezing bank accounts
- Seizing assets
- Salary deductions
- Travel bans (in qualifying cases)
- Auctioning goods or property (as permitted by law)
All enforcement steps require a judicial order.
Debt Collection by Emirate (Dubai, Sharjah, Abu Dhabi)
Debt collection laws in the UAE apply at the federal level, but the process may differ slightly depending on the emirate handling the case. Here’s what you should know.
Dubai
Dubai courts rely heavily on:
- Digital notice systems
- Electronic filing
- Fast-track payment orders
Dubai often moves quickly from written demand → payment order → enforcement, especially for clear contractual debts.
Collectors working in Dubai must follow:
- Central Bank regulations
- Local court procedures
- Straightforward communication rules
Sharjah
Debt collection in Sharjah has the same legal foundation but with:
- Stricter emphasis on formal notices
- Stronger requirements for proper documentation before escalation
- Clear proof of reminder attempts
Agencies collecting in Sharjah must use traceable communication and ensure the debtor receives written notification before the case moves forward.
Abu Dhabi
Abu Dhabi Judicial Department uses:
- Smart court systems
- Online case tracking
- Dedicated enforcement channels
Travel bans and precautionary measures may be applied depending on the case type, documentation, and the judge’s findings.
Credit Card Default and Personal Loan Issues Under UAE Law
Credit card and loan defaults are among the most common reasons people research debt collection laws in the UAE. Here is a clear overview.
What Happens When You Miss Credit Card Payments?
Banks first attempt:
- Reminder calls
- SMS alerts
- Email notices
If arrears continue, a formal notice is issued as required by Central Bank rules.
Collectors may then be appointed, but they must:
- Identify themselves
- Provide written proof
- Follow approved communication boundaries
Can a Travel Ban Be Issued for Debt?
A travel ban is possible only when:
- The case reaches court
- The creditor applies for precautionary measures
- A judge approves the request
There is no automatic travel ban for missing payments.
Can Credit Card Debt Lead to Criminal Charges?
Credit card debt itself is treated as a civil matter.
However, related acts—such as misuse of funds or forged documents—may trigger criminal action depending on the case.
Is Debt Written Off After a Certain Time?
Under UAE law, limitation periods vary depending on:
- Type of debt
- Contract terms
- Actions taken by the creditor
Some debts may remain enforceable for several years if proper notices or filings occur.
Aman for Debts Collection — What You Should Know
Many UAE users search for “Aman for debts collection” or “Aman debt collection.” People often receive messages from this name and want to confirm legality.
Here’s what to understand.
Who Is Aman for Debts Collection?
Aman is a recognized debt collection service used by several banks and finance companies in the UAE. Agents from Aman typically contact debtors regarding overdue:
- Loans
- Credit cards
- Personal finance
- Auto loans
How to Verify an Aman Collector
Before responding, request:
- A copy of the authorization letter from the bank
- The agency’s trade license (if contacting you independently)
- Written confirmation of the amount owed
- A breakdown of the total outstanding balance
A genuine agency will provide these immediately.
Your Rights When Contacted by Aman
You may ask the collector to:
- Provide all communication in writing
- Stop calling outside legal hours
- Confirm the debt in detail
- Avoid contacting family members or colleagues
Collectors must follow the Central Bank’s guidelines at all times.
Rights of Debtors Under UAE Law
Debt collection laws in the UAE protect debtors from unfair or intrusive practices. These rights apply whether the collector is a bank, finance company, or licensed agency.
Below are the key rights every debtor should know.
Right to Clear Information
You have the right to receive:
- Written details of the outstanding debt
- The original creditor’s name
- Breakdown of principal and charges
- Dates of all missed payments
- Account statements when requested
Collectors must provide written evidence before demanding payment.
Right to Privacy
Your financial details cannot be shared with:
- Family
- Friends
- Colleagues
- Employers
Disclosing your debt to others is a violation of Central Bank regulations and can be reported.
Right to Fair Communication
Collectors must follow these rules:
- Contact only between 9 AM and 8 PM
- No repeated calling
- No threats or pressure
- No misleading statements
- No unapproved visits
All communication must be respectful and factual.
Right to Verify the Debt
If you are unsure about:
- The amount
- The agency contacting you
- The creditor’s claim
Right to Dispute the Debt
You may file a dispute if:
- The amount is incorrect
- Payments were already made
- Charges were added incorrectly
- You believe the debt is not yours
The collector must pause action and provide evidence.
Right to Request Installments
UAE law allows installment arrangements if the debtor can show:
- Reduced income
- Job loss
- Medical hardship
- Temporary financial challenges
Banks and agencies are encouraged to work with debtors on sustainable plans.
When Can a Travel Ban Be Issued?
A travel ban is issued only through the court when:
- A creditor files a case
- The judge approves the request
- The debt meets criteria for precautionary measures
Collectors themselves cannot impose a travel ban.
How Businesses Should Use Debt Collection Agencies Legally
Businesses in the UAE must follow proper steps when recovering unpaid amounts. Using a licensed agency helps ensure compliance and smooth resolution.
Step 1 — Send a Written Reminder
Before involving an agency, businesses should:
- Contact the debtor
- Provide a copy of the invoice or contract
- Set a clear deadline
- Use traceable communication
This step protects the business in later legal proceedings.
Step 2 — Issue a Formal Demand Notice
The notice must include:
- Amount owed
- Breakdown of charges
- Payment deadline
- Contract reference
- Clear instructions for settlement
This written notice is often required by UAE courts.
Step 3 — Appoint a Licensed Debt Collection Agency
Quick Action or another licensed firm can take over communication.
Benefits include:
- Faster resolution
- Clear documentation
- Skilled negotiation
- Compliance with UAE rules
Step 4 — Prepare for Legal Options (If Necessary)
If the debtor still fails to respond, legal options include:
- Payment order request
- Civil claim
- Mediation
- Enforcement procedures
A licensed agency can assist with:
- Notice requirements
- Evidence preparation
- Case coordination
Step 5 — Enforcement Through UAE Courts
If the court issues a judgment, enforcement may involve:
- Bank account freezes
- Asset seizure
- Salary deductions
- Auction of assets (when applicable)
- Travel restrictions ordered by the judge
Businesses must follow official channels only.
Debt Collection Agency Laws – Frequently Asked Questions
1. What are the debt collection agency laws in the UAE?
UAE laws require collectors to follow clear rules set by the Central Bank, Civil Procedures Law, and other federal regulations. Collectors must provide written notices, avoid harassment, protect privacy, and use approved communication methods.
2. Can a debt collector call me at any time in the UAE?
No. Collectors may contact you only between 9:00 AM and 8:00 PM. Calls outside these hours are not allowed.
3. Can a debt collector visit my home or office?
Only with your approval. Unannounced visits are not allowed under Central Bank rules.
4. Can a collection agency share my debt with my employer or family?
No. Sharing private financial information with others is strictly prohibited.
5. Can a debt collection agency add extra charges?
No. Collectors can only request amounts stated in the original contract or approved by law.
6. Can a collector threaten to jail me for not paying debt?
No. Civil debt does not lead to jail. Only court orders can trigger legal measures such as travel restrictions, bank freezes, or asset seizure.
7. How long can a bank chase me for credit card debt in the UAE?
The timeframe depends on the contract and legal actions taken. If reminders or claims are filed within valid periods, the debt may remain enforceable for several years.
8. What happens if I ignore debt collection calls or notices?
The creditor may proceed with:
- A payment order
- A civil case
- Enforcement actions after judgment
Ignoring notices can lead to stronger legal steps.
9. Can I ask the collector to provide proof of the debt?
Yes. You have the right to request:
- Contract copies
- Statements
- Authorization letters
- Balance breakdowns
Collectors must pause action until proof is provided.
10. Are debt collectors in the UAE licensed?
Yes. Agencies must be licensed and authorized to operate. Unlicensed debt collection activities are not allowed.
11. What is the legal process if a debt reaches court?
The creditor may file:
- A payment order (for clear debts)
- A civil lawsuit (for disputed debts)
After judgment, enforcement may include bank freezes, salary deductions, or asset seizure.
12. Can a travel ban be issued for unpaid debt?
A travel ban can be issued only by a judge after a formal case is filed and if the debt qualifies for precautionary measures. Collectors themselves cannot impose a travel ban.
13. How do I know if a collection agency is real?
Ask for:
- Trade license
- Authorization from the creditor
- Written notices with official contact details
A licensed agency will provide these willingly.
14. What should I do if a collector is rude or threatening?
You may:
- Document all communication
- Make a complaint to the bank
- Escalate to the UAE Central Bank Consumer Protection Unit
- Contact legal support if needed
Threatening behavior is not permitted.
15. What should I do if I cannot pay the debt in full?
You may request:
- Installments
- A repayment plan
- A settlement agreement
Banks and agencies commonly offer structured plans based on financial capacity.
16. Can debts from the UAE be chased abroad?
Yes. International recovery is possible through authorized channels, depending on the countries involved and the agreements in place.
17. Should I pay the creditor or the collection agency?
Payment should be made only to:
- The creditor’s account
- A licensed agency’s approved account
- The court, if the case is under enforcement
Avoid transfers to personal accounts.
When to Seek Professional Help
You may need support if you are facing:
- Continuous arrears
- Court notices
- Verified debt collection calls
- Disputes over the amount
- Difficulty managing multiple debts
- Customers delaying payment to your business
Getting the right guidance ensures compliance with UAE rules and helps prevent legal complications.
Conclusion
Debt collection agency laws in the UAE provide a structured path for resolving unpaid debts while safeguarding the rights of both parties. Collectors must follow clear rules, respect privacy, and communicate appropriately. Debtors have the right to accurate information, written notice, verification, and fair treatment.
Whether you’re a business seeking recovery or an individual facing arrears, understanding these laws helps you move through the process with clarity and confidence.
