I received a legal notice last week as I owe Dh20,000 ($5,445) to a friend.
During the coronavirus pandemic and for the past few years, I haven’t had a stable job and have not been receiving a regular salary.
I told my friend that I could not commit to a regular debt repayment plan at that time. However, I got a job last month with a monthly salary of Dh7,500.
I told my friend that I can start repaying her from next month since I had to urgently settle credit card dues first.
I replied to the legal firm acknowledging receipt of their notice and also sent them proof that I did not have the capability of repaying the debt cumulatively. I sent them proof of my income.
I have maintained open communication with my friend since I borrowed money. I never blocked her and I have every intention to repay her.
I requested for reasonable debt settlement terms as the legal firm has asked me to pay back the money in a week. What can I do if they refuse my debt repayment terms?
Will my friend go to court? Please advise. JJ, Dubai
Debt Panellist 1: R Deepakchandran, group head of retail products at Emirates NBD
It is unfortunate that you are facing this difficulty and I empathise with your situation.
To your query on whether your friend can take you to court – yes she could, if there is a clear document and proof of you having borrowed money from her. This is admissible in the court of law.
Having said this, given that you have maintained open communication with your friend, I would suggest first talking to her to see if she is willing to agree to your repayment terms.
If your friend is still co-operative, I would recommend working out a plan detailing the amount of money you would be able to pay back each month and documenting this.
However, if she is not willing to reconsider, I would suggest that you get some legal advice to see what your approach could be.
Given your unforeseen circumstances during Covid and the fact that you now have a regular job, a lawyer may be able to recommend a prudent approach.
In parallel, you should also consider consolidating your existing savings, if any, and liquidating any other assets you may have back home to gather the funds to pay off the debt.
Also, do try to foster a habit of putting a percentage of your earnings aside as savings to help you for a “rainy day”.
It is commendable that you are reaching out for assistance with your situation to put in place changes before it is too late. I wish you all the best in arriving at a positive solution to your situation.
Debt panellist 2: Jaya Ratnani, managing partner at Freed Financial Services
Based on the information provided, it appears that you have been served with a legal notice regarding your debt of Dh20,000 to a friend, who has hired a legal firm to recover the debt.
While I cannot provide legal advice, it's essential to understand that in the UAE, there is no specific legal framework that regulates personal loans between friends.
However, if the debt is acknowledged and the lender has the relevant documents to prove the existence of the loan, they can proceed with legal action if the borrower fails to fulfil their debt obligation.
You have acknowledged the debt and have been maintaining open communication with your friend, which is a positive step.
The key now is to negotiate reasonable debt repayment terms with the lender and the legal firm. It is essential to communicate clearly and honestly with them, highlighting your financial circumstances and your intention to repay the debt.
If the lender and the legal firm refuse your debt repayment terms, you may want to seek legal advice from a qualified lawyer to understand your options and the potential consequences of not being able to pay the debt.
As for whether your friend will go to court, it would depend on the circumstances and the lender's approach to debt recovery.
It's important to note that debt resolution is a complex and time-consuming process, and any decision to enter into litigation should be carefully considered.
It is crucial to keep all lines of communication open and to be transparent about your financial situation, as this can help to establish a mutually beneficial debt resolution plan.
Debt panellist 3: Alison Soltani, founder of Leap Savvy Savers
In this situation, if you do not pay within the specified time frame, the legal firm may then file a case at court.
Usually, the first step is a personal request to pay, followed by a legal notice, and if this is refused or ignored, the case can be followed up at court.
However, it would be in your friend’s interest to show a contract proving that she lent you the money and the agreed timeline for repayment.
Calculate how much you can regularly and realistically pay while maintaining your bills and obligations given your current situation
Alison Soltani,
founder of Leap Savvy Savers
This would theoretically prove that you have refused to abide by the terms of the loan.
In your case, if you have evidence that you could not repay the loan financially, but you are open to repayment negotiations now that you have secured a job, this is favourable for you should a civil lawsuit be raised.
Your friend will incur legal fees for taking the case to the courts, and depending on the evidence that she has, there is no guarantee that the case will be successful.
The strongest evidence is a written and signed contract between the two parties. Other forms of communication, such as WhatsApp messages, can be considered as evidence, too.
I recommend contacting your friend and the legal firm with a repayment schedule starting as soon as possible.
If possible, apologise for not being able to pay a lump sum and explain your financial circumstances.
Calculate how much you can regularly and realistically pay while maintaining your bills and obligations given your current situation. Send a schedule with the exact dates in which you will pay each instalment until maturation.
Arrange for each payment to be made two to three days after payday just in case there are any delays with your income.
The easiest way to initiate and maintain this arrangement is to request bank details and set up an automatic bank transfer for each payment, then treat it like any other bill.
If your friend sees the steps you are taking to repay the loan, she may reconsider taking the case to court, given the costs associated with the process.
However, if the case is referred to court, it would be wise to gather all evidence that you have remained amenable and open to repayment since the loan was issued, such as emails, bank statements and messages.
It may also be necessary to seek legal advice at that point, although it is unlikely to reach that stage in the process if you lay out a repayment plan and start making payments as soon as possible.
The Debt Panel is a weekly column to help readers tackle their debts more effectively. If you have a question for the panel, write to pf@thenational.ae
Killing of Qassem Suleimani
Company Fact Box
Company name/date started: Abwaab Technologies / September 2019
Founders: Hamdi Tabbaa, co-founder and CEO. Hussein Alsarabi, co-founder and CTO
Based: Amman, Jordan
Sector: Education Technology
Size (employees/revenue): Total team size: 65. Full-time employees: 25. Revenue undisclosed
Stage: early-stage startup
Investors: Adam Tech Ventures, Endure Capital, Equitrust, the World Bank-backed Innovative Startups SMEs Fund, a London investment fund, a number of former and current executives from Uber and Netflix, among others.
What is graphene?
Graphene is a single layer of carbon atoms arranged like honeycomb.
It was discovered in 2004, when Russian-born Manchester scientists Andrei Geim and Kostya Novoselov were "playing about" with sticky tape and graphite - the material used as "lead" in pencils.
Placing the tape on the graphite and peeling it, they managed to rip off thin flakes of carbon. In the beginning they got flakes consisting of many layers of graphene. But as they repeated the process many times, the flakes got thinner.
By separating the graphite fragments repeatedly, they managed to create flakes that were just one atom thick. Their experiment had led to graphene being isolated for the very first time.
At the time, many believed it was impossible for such thin crystalline materials to be stable. But examined under a microscope, the material remained stable, and when tested was found to have incredible properties.
It is many times times stronger than steel, yet incredibly lightweight and flexible. It is electrically and thermally conductive but also transparent. The world's first 2D material, it is one million times thinner than the diameter of a single human hair.
But the 'sticky tape' method would not work on an industrial scale. Since then, scientists have been working on manufacturing graphene, to make use of its incredible properties.
In 2010, Geim and Novoselov were awarded the Nobel Prize for Physics. Their discovery meant physicists could study a new class of two-dimensional materials with unique properties.
Killing of Qassem Suleimani
UAE currency: the story behind the money in your pockets
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
US tops drug cost charts
The study of 13 essential drugs showed costs in the United States were about 300 per cent higher than the global average, followed by Germany at 126 per cent and 122 per cent in the UAE.
Thailand, Kenya and Malaysia were rated as nations with the lowest costs, about 90 per cent cheaper.
In the case of insulin, diabetic patients in the US paid five and a half times the global average, while in the UAE the costs are about 50 per cent higher than the median price of branded and generic drugs.
Some of the costliest drugs worldwide include Lipitor for high cholesterol.
The study’s price index placed the US at an exorbitant 2,170 per cent higher for Lipitor than the average global price and the UAE at the eighth spot globally with costs 252 per cent higher.
High blood pressure medication Zestril was also more than 2,680 per cent higher in the US and the UAE price was 187 per cent higher than the global price.
Mohammed bin Zayed Majlis
Mohammed bin Zayed Majlis
The years Ramadan fell in May
UAE currency: the story behind the money in your pockets
Manchester United v Club America
When: Thursday, 9pm Arizona time (Friday UAE, 8am)
MATHC INFO
England 19 (Try: Tuilagi; Cons: Farrell; Pens: Ford (4)
New Zealand 7 (Try: Savea; Con: Mo'unga)
Other workplace saving schemes
- The UAE government announced a retirement savings plan for private and free zone sector employees in 2023.
- Dubai’s savings retirement scheme for foreign employees working in the emirate’s government and public sector came into effect in 2022.
- National Bonds unveiled a Golden Pension Scheme in 2022 to help private-sector foreign employees with their financial planning.
- In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
- Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.
Mohammed bin Zayed Majlis
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
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More coverage from the Future Forum
RESULTS
2.15pm: Al Marwan Group Holding – Handicap (PA) Dh40,000 (Dirt) 1,200m
Winner: SS Jalmod, Antonio Fresu (jockey), Ibrahim Al Hadhrami (trainer)
2.45pm: Sharjah Equine Hospital – Maiden (PA) Dh40,000 (D) 1,000m
Winner: Ghallieah, Sebastien Martino, Jean-Claude Pecout
3.15pm: Al Marwan Group Holding – Handicap (PA) Dh40,000 (D) 1,700m
Winner: Inthar, Saif Al Balushi, Khalifa Al Neyadi
3.45pm: Al Ain Stud Emirates Breeders Trophy – Conditions (PA) Dh50,000 (D) 1,700m
Winner: MH Rahal, Richard Mullen, Elise Jeanne
4.25pm: Sheikh Mansour bin Zayed Al Nahyan Cup – Prestige Handicap (PA) Dh100,000 (D) 1,200m
Winner: JAP Aneed, Ray Dawson, Irfan Ellahi
4.45pm: Sharjah Equine Hospital – Handicap (TB) Dh40,000 (D) 1,200m
Winner: Edaraat, Antonio Fresu, Musabah Al Muhairi
The view from The National
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
Director: Laxman Utekar
Cast: Vicky Kaushal, Akshaye Khanna, Diana Penty, Vineet Kumar Singh, Rashmika Mandanna
Rating: 1/5
A%20QUIET%20PLACE
%3Cp%3E%3Cstrong%3EStarring%3A%3C%2Fstrong%3E%20Lupita%20Nyong'o%2C%20Joseph%20Quinn%2C%20Djimon%20Hounsou%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3EMichael%20Sarnoski%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
The Voice of Hind Rajab
Starring: Saja Kilani, Clara Khoury, Motaz Malhees
Director: Kaouther Ben Hania
Rating: 4/5
KILLING OF QASSEM SULEIMANI
Disclaimer
Director: Alfonso Cuaron
Stars: Cate Blanchett, Kevin Kline, Lesley Manville
Rating: 4/5
