What do some borrowers think?
Some borrowers believe that obtaining large bank loans and then stopping repayment or fleeing abroad, is an easy matter (other than the truth) as the defaulting customer is the stronger party, which makes the banks obliged to make concessions to recover any percentage of their money, claiming that the customer’s imprisonment The defaulter will not return the money to the banks.
Why are banks always the strongest party?
Bankers stressed that banks are always the strongest party, as they obtain several guarantees to restore their rights from those who take those funds, specifying those guarantees, starting with the in-kind guarantees of the loan from real estate and other assets, as well as legal guarantees such as guarantee checks and loan contracts that include clauses that protect the rights of Banks, up to the bank’s right to take legal measures that include circular and travel bans, and then obtaining court rulings and seizing the money and property of the fraudulent defaulter.
The bankers indicated that thinking about obtaining loans and banking facilities and escaping with those funds and living with them in prosperity abroad is deficient thinking because the losses of those who do so are numerous, and some of them are tangible, such as legal and judicial prosecution by money-collection companies and law offices that banks deal with.
In the state of the fugitive and his recovery through Interpol, pointing out that the intangible losses include that the bankruptcy of bank funds is unacceptable from a religious, moral, and societal point of view, as well as that those who escape cannot return to the Emirates, and consequently the loss of job, investment and commercial opportunities that are not available in any country.
ِAs well as a safe and stable lifestyle, which may make the fugitive regret his whole life.
The origin of the relationship between the bank and the borrowing customer is a partnership relationship between the two parties, where the bank’s goal when granting funds is to provide banking solutions that help the customer to complete his business and obtain liquidity that meets his financial requirements, stressing that in the event the customer defaults in repaying the loan, the bank It starts with several steps to help the “serious defaulter” meet his obligations, but if it becomes clear to the bank that the defaulting customer is (not serious), the matter is different.
The belief of some customers that the bank is the weakest party and will be obliged to provide great facilities to the troubled customer is incorrect, because the bank is a joint-stock company, and the goal of its management is to preserve and develop shareholders’ funds, and the bank cannot waive its rights, stressing that the bank does not hesitate to take all measures that enable him to preserve his rights, as he can take several measures against the defaulting customer who is not serious, the first of which is placing him on the black list that makes obtaining any facilities from other banks impossible, in addition to taking legal measures that include circular and travel bans.
Up to obtaining court rulings, and seizing the defaulted funds.
Bank clients who believe that they can obtain the largest amount of loans and banking facilities and then flee abroad, have to look at the matter differently because the seizure or prostitution of bank funds is rejected from the religious, moral, and societal point of view.
He added that in practice, such a matter is not wise, as investment opportunities in the country are available, financing opportunities exist, and income improvement opportunities are numerous, which means that those who wish to seize certain amounts through loans and escape, will lose opportunities that may be more feasible and profitable.
In the future, not to mention his exposure to legal procedures, noting that banks operating in the country can easily cooperate with money-collection companies and law firms in different countries to which the distressed customer may flee, in order to pursue the customer.
Banks are undoubtedly the strongest legal party
Banks are undoubtedly the strongest legal party in the event of a customer default, as loan and financing contracts include many guarantees to protect the bank’s money, noting that the matter is slightly different if the defaulter flees outside the country, were pursuing him and restoring rights is a relatively difficult matter due to the high cost The financial institution may resort to collection offices or seek the assistance of specialized law firms to prosecute the client legally and judicially, especially since some countries’ laws may consider defaulting outside the same country as not legally criminal, in addition to other countries granting protection to the defaulter through bankruptcy law.
Banks are the strongest party in the event that the troubled customer remains inside the country, to the fact that there are many steps that can be taken against the defaulter, the most important of which is putting his name on the black list that makes all banks do not deal with him and do not grant him any financing or banking facilities in Al-Mustaqbal, noting that other procedures also include taking legal measures in order to generalize the defaulter and seize his money in fulfillment of the debt, as well as his exposure to imprisonment and deportation from the state.
Banks study each defaulting case separately so that a distinction is made between the defaulter due to circumstances beyond his control, such as exposure to a financial crisis or humanitarian cases such as illness or the presence of other parties indebted to him.
In such cases, an agreement must be reached and legal action is not taken immediately.
With dropping a percentage of the profit or part of the principal, and collecting the indebtedness over longer periods, pointing out that in the case of a fraudulent defaulting customer, banks must open reports.
Strength guarantees, In turn, that the belief of some customers that bank money is an easy matter, and that the defaulting customer is the strongest due to the bank’s need to recover any part of the money, is completely wrong, attributing this to The bank or financial institution that grants financing is always the stronger party, as it takes multiple guarantees on the customer wishing to borrow.
Permanent escape from the pursuit of the bank is subject to imprisonment
The borrower who slanders banks’ money and thinks about obtaining loans and defaulting or escaping with them, pays the price for that in the long run, as the beginning is damage to the reputation and the permanent attempt to escape from the pursuit of the bank and the fear of being imprisoned and then losing family and friends, in addition to the permissibility of Bank money is religiously forbidden.
He explained that among the other losses that the defaulter (not serious) is exposed to, is placing him on the blacklist with the Al-Etihad Credit Bureau, which makes his dealings with banks impossible, as well as making him unable to obtain services (as is the case in other countries), such as not renewing Passport, driver’s license renewal, or cutting off other services such as telephone or electricity and water connection, stressing those who believe that banks are forced to make concessions to the troubled customer such as reducing interest or the principal of the debt, is completely wrong, as the bank cannot make concessions in His money, which is originally the shareholders’ money, because the bank’s management is legally accountable if it provides facilities in such a matter.
In addition to the fact that banks have taken several guarantees to recover their money that is lent to customers, this does not mean that they are intransigent or deliberately harming their defaulting customers due to compulsive circumstances beyond their control, noting that the banks always cooperate with the stutterer who is serious in repayment, and provides him with many facilities if he proves good faith. Commitment and the desire to get out of the crisis.
Since in the event that the defaulter escapes with the bank’s money abroad, the banks do not stand helpless, as they have multiple mechanisms to recover their money, including legal prosecution and fetching through Interpol, pointing out that the fugitive defaulter loses several things that he may not take into account, the most important of which is not to return to The Emirates, and consequently, the loss of job, investment and commercial opportunities that are not available in any country, as well as a safe and stable lifestyle.