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Indian centre offers financial counselling to expatriates

Dubai - In a bid to help and educate expatriates facing financial issues, the IWRC is offering weekly free-of-cost open house sessions.

Financial experts and social workers are witnessing a rising number of financial distress cases among members of the Indian expatriate community.
According to K V Shamsudheen, chairman of the not-for-profit Pravasi Bandhu Welfare Trust, his office receives approximately 25 financial distress calls from Indian expatriates every day. "I began providing financial advice to expatriates in 2011. I have worked with hundreds of families and bachelors, and the numbers have risen in the recent past."
Furthermore, approximately 20-28 people head over to the weekly open house, organised by the welfare body, Indian Workers Resource Centre (IWRC), also have financial distress cases. Bindu Suresh Chettur, a lawyer who provides legal counselling at the IWRC, said: "Most people who come to us suffer from financial distress. The most common issues are cheque bounce cases, credit card issues and bank loans."
In a bid to help and educate expatriates facing financial issues, the IWRC is offering weekly free-of-cost open house sessions. "Residents are given free expert consultation and legal advice in cases necessary at the IWRC's Dubai office from 3pm to 6pm, every Friday and Saturday. Sometimes the sessions go on till 7pm," said Chettur. In the case the financial issue requires legal counsel, the centre also provides free legal counsel to the distressed individuals.
Shamsudheen said: "The summer is witnessing a high number of cases of bounced cheques and credit card repayment issues. Last week, two families approached me saying they don't have the means to even have one square meal. In many of these cases, the debt incurred due to lack of knowledge of financial planning."
P.V.S. (name withheld at request), an Indian resident who has been in the UAE for 13 years, said: "I have a personal loan of Dh350,000 and eight credit cards with high credit limits. My total monthly instalments towards loans are over Dh15,000 and my monthly salary is only Dh17,000. Once I replay all the instalment, I have nothing left for rent or any other expense."
Shamsudheen also said such cases were very common in the UAE. "I know a man who has 16 credit cards, and he lives here with his family in dire distress. Many people who take bank loans don't take it as an investment."
IWRC negotiates with financial institutions
During the IWRC open house sessions, the centre helps residents with a settlement plan with the banks. Chettur said: "In many cases, the IWRC negotiates with the financial institutions on behalf of the residents and come forward with a settlement plan." However, Chettur also said in the case of credit cards, banks don't display the same confidence when payments need to be recovered.
"When banks sell credit cards, they offer credit shield to the customer. This shield is valid even when people lose their jobs. But when a customer is struggling with repayment, they don't seem to be showing the same benevolence." She said that awareness is much better than cure, and people should consider such things before availing a credit card or a loan.
Increase in mobile fraud case
Chettur said the IWRC has seen a drastic spike in the number of mobile fraud cases, wherein people buy expensive phones or purchase SIM cards by providing the ID proof of innocent people. "Currently, there are a lot of cases with respect to usage of mobile numbers. A lot of labourers are getting involved with such cases. Fraudsters provide different identification cards before purchasing SIM cards or very expensive handsets on instalments," she explained.
Once the instalments are not paid, huge bills are slapped on these workers, who are clueless about the purchase. She added: "Telecom providers such as Etisalat and Du need to do follow-up verification calls before selling handsets to people. They need to check if the ID and the number belong to the same person."
The next IWRC open house session in Dubai is on July 20-21 at 3pm at the following address: 15L, Silver Tower, Cluster-I, Jumeirah Lakes Towers, Dubai.
dhanusha@khaleejtimes.com

• Dubai