A retail supplier in the UAE had a complex debt collection case because the debt had been unpaid for more than six months and the debtor claimed that he was financially unable to repay the AED 300,000 debt.
This situation confused the creditor and made him hesitant about conducting debt collection procedures, so he needed the help of a professional debt collection agency in Dubai, and he chose “Quick Action” as his partner in this complex debt collection case.
Challenges
- The first challenge was the age of the debt since it hadn’t been recovered for more than 6 months, making the collection process harder.
- The main challenge was the debtor’s claim of severe financial hardships that left him with no funds or assets to repay the outstanding debt.
- Another challenge arose when the client hesitated about legal actions due to concerns over potential negative impact on his reputation and relationships with customers.
Solution
When a debtor claims that he cannot settle the debt, we never rely solely on the debtor’s word. Instead, we verify his real financial situation through different legal channels to ensure he is not manipulating the process.
In this case, our debt collection experts discovered that the debtor had hidden assets and was attempting to avoid repayment.
We held a meeting with the client to explain the case details and convinced him that a legal approach was the best solution.
With the help of our legal partner Dr. Ahmed Al Ramsy Advocates & Legal Consultancy, we conducted the required legal actions and filed a case in mainland UAE courts. The court ruled in our favor, but the debtor continued claiming insolvency. We then performed enforcement measures including:
- Imposing a travel ban on the debtor
- Freezing the debtor’s bank accounts
- Placing restrictions on his trade licenses and traffic files
These legal restrictions ensured that the debtor could neither manage his business freely nor travel, which would eventually force repayment.
Result
The case remained unresolved for months, but approximately one year later, the debtor contacted us to urgently settle the debt due to the travel ban.
Finally, the debtor repaid the full amount within less than two weeks to lift the travel ban.
The client was ultimately satisfied, realizing the importance of legal procedures in complex cases and trusted us for all future debt collection matters.
Frequently Asked Questions
How did you confirm the debtor was hiding assets?
We verified the debtor’s financial situation through legal channels and investigations, which revealed assets he was attempting to conceal.
What legal actions were taken?
We filed a case in UAE courts, obtained a favorable ruling, imposed a travel ban, froze bank accounts, and placed restrictions on trade licenses and traffic files.
How long did it take to recover the debt?
Although the case remained unresolved for nearly a year, the debtor repaid the full amount in less than two weeks after legal enforcement.
Why was legal action necessary?
Legal procedures were essential because the debtor was manipulating his financial situation and refusing to repay voluntarily.
