Can debt collectors sell my debt to another agency in Dubai?

 Debt collection Dubai is governed by strict legal guidelines, ensuring that both debtors and creditors are treated fairly. However, it's not uncommon for a debt collector to sell your debt to another agency in the UAE. This practice is legal, but it is bound by specific regulations.

Debt collectors in Dubai, like elsewhere, often outsource or sell delinquent debts to other agencies if they are unable to recover the amount owed within a reasonable timeframe. This is a standard business practice used by financial institutions, banks, and other creditors to minimize losses. Once your debt is sold, the new agency takes over the responsibility of recovering the debt.

However, the sale of your debt to another agency in Dubai is not without restrictions. According to the UAE’s legal framework, particularly under the Civil Transactions Law, the transfer of debt must be transparent, and debtors should be notified about the change in the agency handling their case. You are entitled to know the details of the agency now managing your debt, including their contact information.

It’s important to note that while the debt may be sold, the original terms of the agreement—such as the amount owed and any associated interest—remain the same. The new collection agency will attempt to recover the debt based on these terms. Additionally, the new debt collector is still required to follow the guidelines set out by the UAE Central Bank and other relevant authorities, ensuring that the collection process remains fair and respectful.

If you find yourself in a situation where your debt has been sold to another agency, it’s critical to remain proactive. Communicate with the new debt collector, review the terms of the debt, and explore possible payment arrangements. Keep in mind that ignoring the debt will only escalate the issue and could lead to further legal consequences.

In conclusion, while debt collectors in Dubai can sell your debt to another agency, it must be done in compliance with the law. Ensure you are aware of your rights, and if needed, seek professional advice from a financial expert or lawyer specializing in debt collection in Dubai.

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