Filipino workers warned not to borrow money in UAE
The Foreign Ministry has sent a reminder and warning to UAE-based Filipino workers against obtaining loans and using credit cards abroad.
“This opinion is issued in light of the alarming increase in the number of Filipinos detained for unpaid loans,” said the DFA.
The DFA said that due to low-interest loans OFWs tend to apply for various loans and then find out they haven’t read the fine print – some taking as much as 18 months’ pay for repay them.
“Debt-related cases are extraordinarily difficult to manage, especially if lenders, whether banks or individuals, have filed criminal or civil lawsuits against the borrowers,” said the DFA.
He added: “Once a civil case is filed against a delinquent borrower, a travel ban is automatically imposed on the borrower and he could not leave the country.”
Likewise, issuing a bad check is a criminal offense in the United Arab Emirates. Lenders typically require borrowers to sign a blank check for security. When the borrower defaults, the check will be bounced and criminal charges will ensue. If the signature on the check is proven original and genuine, the case against the borrower is confirmed in court.
âFor example, two Filipinos had difficulty leaving Dubai due to unpaid loans. One was stranded in Dubai for 14 years after defaulting on his bank loan worth AED 80,000 or US $ 21,700, while another was stranded in Dubai for several years after the lender , an Indian national, filed a complaint against her for non-payment of a personal loan, âquoted the DFA.
The loans are considered a private matter between the lender and the borrower and the Philippine diplomatic missions cannot intervene in these cases, clarified the DFA.
“OFWs are encouraged to be wise in their spending and hard-earned savings to avoid taking out loans from banks and individuals,” the DFA noted.