Bank loan 'skips' double in 2008

DEBT PROBLEMS: More than 3,000 cars were abandoned in the UAE in 2008 as owners fled to escape loan payments. (Getty Images)

More than 3,000 cars were abandoned by owners in the UAE in 2008 to escape loan payments - more than double the 2007 figure - as the impact of the global economic crisis took its toll.

According to a senior police official, 3,241 cars were claimed by the banks in Dubai, compared to 1,450 cars the previous year - a 123 per cent increase.

Banks are now trying to claim some of their money back by selling them at auctions or through car dealerships.

“Under the current financial situation, people who do not have the means may decide this is their only way out,” said Col Saif Muhair Al Mazrouei, deputy director of traffic department at Dubai Police in comments published by UAE daily The National on Saturday.

“The person could be arrested on his way in or out of the country,” Mazrouei told the paper. “They will not be able to return to the country before paying off any impending debts.”

Police recently removed 22 cars dumped at Dubai International Airport after owners fled the country leaving a trail of debt behind. Cars have also been abandoned at Abu Dhabi International Airport.

A UAE bank official, who requested anonymity, told the paper that people who dumped their cars and fled the country were known as “skips”.

“This isn’t unusual here,” he said. “A lot of times people just leave. You get a credit card and loans and then you lose your job. What to do? Go home. It’s something that all banks are facing."

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READERS' COMMENTS

Dubai police attitude is the key
Posted by Djamel AMALOU, Dubai, UAE on Tuesday 19 May 2009 at 05:02 UAE time

Most expactriate that have issue with debt, loan, etc... are affraid to face them obligation due to Dubai police intimidation and over power. Basically some will say that the real estate agent should reduce rent, some will say the bank should reduce and that will be nice. But I think it is important to note the attitude of the police in dubai when they call you or you hear that they call a friend of yours with a sounds attitude that make you affraid.
Dubai police should be more tolerent and not by all time set a criminal case.
In Europe the monetory exchange note name as check is almost abolish. Post dated check are not used. The check is revolut because it present a tentation risk of defaulting.
Dubai police comity should set the proposal to calm the situation by publish them report and presented to government official to not implement criminal case when a bounce check or default loan is presented to the Dubai police.
It should be civil case .By presented to civil case people who receive check will think twice to the solvability of the person before and will accept less this type of obligation.
No criminal case for check or loan will push deal to be more clean more constructve by using other meaning and mode payment by securing the transaction.

Only Latest Model to enter Dubai
Posted by Khalil, Abu Dhabi, UAE on Thursday 15 January 2009 at 14:52 UAE time


This is result of the artifical prosperity and policies of Govt, by imposing ban on old cars.

why
Posted by andrews, dubai, united arab emirates on Monday 12 January 2009 at 08:01 UAE time

Hi Ananth,
I read your thoughts and don't understand why you expect the government of this country to help us - expatriates. They always have a feeling in mind that we need them and if you look at the current crisis, I am sure that everyone reading this knows deep inside that they want to work and live in this country as the countries they are coming from- be it Europe or Asia are all in crisis and people are loosing jobs.
The government is not obligated to do anything and we cant blame them. They have their own countrymen to take care of before the expats and I don't think that its in any way wrong.
Any country will protect its people first and not foreigners.

Bank were given free hand
Posted by MOHAMMED KALEEMULLAH, DUBAI, U.A.E. on Sunday 11 January 2009 at 18:57 UAE time

Banks were given free hand by authorities and a helping hand by law enforcement agencies to do as they please. Even Islamic Banks are not considerate and Islamic. All Banks exploited and now its their turn to 'reap as you sow.' Too much 'Bank interest' in the market decreased the value of money & increased headaches for the customers. Exhorbitant, unscruplous & hidden charges were the order of the day for Banks. Hope they take heed...maybe

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