Question

Lived and worked in the UAE and took out a UAE Bank Loan which I have not repaid approx 100KGBP defaulted June 2021…..I left the UAE August 2020. I was a UK resident not British Citizen (American Citizen) between August 2020 until Sept 2021. Coyle & Devine contacted me via email today representing UAE Bank for collection and threatening a CCJ. I left the UK in Sept 2021 back to the states. I have no property in the UK save for a bank account in the UK which I can quickly close. Not employed in the UK any longer and I have told the HMRC that I left the UK Sept 2021

Can Coyle and Devine file a CCJ against me in the UK even though I don’t reside in the UK and have no UK assets save for the bank account? Could they force me into bankruptcy in the UK even though I don’t have asset or live in the UK? If a CCJ is acquired by Coyle and Devine (they don’t own the debt) can they enforce the CCJ in the US and take my assets in the US? If I ignore the CCJ and they force me into bankruptcy in the UK and I ignore it as well can I be criminally liable?

John

Answer

John,

You have an interesting situation here, and I will try to address your questions.

Banks in the UAE do regularly assign or sell accounts to various collection agencies to be collected outside the UAE, and Coyle, While, Devine are one such agency in the UK. UAE banks can do this due to the terms and conditions of some loans as they have a “non-jurisdiction” clause. This means the loan can be collected anywhere, not just where the loan originated, in the UAE.

Once an account is assigned to a UK collection agency to be collected, it then must be collected in accord with UK laws and rules. This means yes, CWD can look to obtain a CCJ against you, or possibly make you bankrupt, in the UK.

You then also have all the debt management and insolvency options available to you for the debt; UK options.

Do you have any other debts in the UK?

Does CWD know you are not residing in the UK, but live in the USA?

So to answer your questions:

Yes, CWD could look to get a CCJ against you in the UK.

However, if you have no assets in the UK, there is no way CWD can look to enforce a CCJ.

I would guess that if CWD know or realise you are outside the UK, they would probably stop their collection efforts as there is nothing they can do. Making you bankrupt in the UK will cost them more money, and they would not collect anything.

Keep me up-to-date as to what happens and what you decide to do, if anything.

The debt will not stop you returning to the UK, as long as you meet any travel or Visa requirements, and owing money or being in debt is not a crime.

Regards,

Jon

2 Responses

Leave a Reply

Your email address will not be published. Required fields are marked *