Insolvency laws won't help people caught in the debt trap of shark loaners

Filed on November 19, 2019 | Last updated on November 19, 2019 at 07.27 pm

I hope there will also be a law that will help low-wage earners too (New UAE law to help people facing financial issues; KT, Nov 19). They do not have access to banking facilities as such, and a lot of them rely on shark loaners to secure funds when needed. The interest they pay on such loans is extremely high, almost 10 to 15 per cent a month. Moreover, some of them have to give pledge collateral such as passport, Emirates ID, gold to secure the loan. I hope the government does something for this lot as well and take steps to discourage this kind of abusive lending facilities.

-Name withheld on request

. This is great news and will help us settle our liabilities and financial problems. Life is safe and good in the UAE. There's not much to worry about except for the problems we create ourselves. Unsustainable credit from banks and credit cards pushes many into the spiral of debt. Even if people service their loans well, a sudden job loss can throw many out of kilter. In such cases, sometimes banks don't offer a good settlement or restructure plans. The new law will help people who want to continue looking for good opportunities here and are committed to pay back what they owe to banks.

-Janice, KT website

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