2 readers online now  |  69 million page views

Abandoned Truth

Reader comment on item: Dubai's Dramatic Drop
in response to reader comment: Not Quite That Bad

Submitted by B.K. Nambiar (United Arab Emirates), Mar 19, 2009 at 01:46

Anticipating a reply from Ken Wise I quote below a local newspaper which shows Mr. Ken Wise is not interested in objectivity.

Quote:

Park and fly takes on a new meaning

Rasha Abu Baker

  • Last Updated: January 10. 2009 3:45PM UAE / January 10. 2009 11:45AM GMT

Police recently removed 22 cars dumped at Dubai International Airport after owners fled the country. Ryan Carter / The National

More than 3,000 cars have been abandoned by owners to escape loan payments, just over double the figure in 2007, a senior police official has revealed.

Banks are now being forced to try to claw back some of their money by selling them at auctions or through car dealerships. One bank official said it was becoming a concern to banks, many of whom have tightened up criteria for issuing loans. Customers with credit cards have also seen their limits reduced.

Police recently removed 22 cars dumped at Dubai International Airport after owners fled the country leaving a trail of debt behind. Cars have also been abandoned at Abu Dhabi International Airport.

"Under the current financial situation, people who do not have the means may decide this is their only way out," said Col Saif Muhair Al Mazrouei, deputy director of traffic department at Dubai Police.

In Dubai last year 3,241 cars were claimed by the banks, he said. Of these 466 had been impounded by police. "The percentage of such incidences rose last year. In 2007, 1,450 cars were claimed by banks. In 2008, the number increased by 123 per cent," he said.

document.write(");

Police issue warrants against owners of abandoned vehicles and banks said they actively pursued anyone defaulting on payments.

"The person could be arrested on his way in or out of the country," said Mr Mazrouei. "They will not be able to return to the country before paying off any impending debts."

A UAE bank official, who requested anonymity, said people who dumped their cars and fled the country were known as "skips".

"This isn't unusual here," he said. "A lot of times people just leave. You get a credit card and loans and then you lose your job. What to do? Go home. It's something that all banks are facing.

"There are certain terms and conditions agreed to. Of course, the bank would go all out to get the guy, like using collection agents. I can tell you that collection agents at all banks are really busy right now."

Around 65 cars were seized at the end of last year from Dubai International Airport. But Brig Ahmed Bin Thani, director of airport security at Dubai Police, said not all were claimed by banks. "Some travel under emergency circumstances, some decide to rent a car, others may just be careless. There are some individuals who come a year or two later to inquire about their vehicles."

A spokesman for Abu Dhabi Airport said it occasionally saw abandoned cars, but security checks were carried out in the car parks three times a day.

Vehicles are only released to banks after they pay all traffic fines incurred.

"The banks have to pay all the traffic fines on the car before it is released to them to sell. They issued the car loan and it is their responsibility," Mr al Mazrouei said.

Once released to the bank, the seized cars will end up as lots in an auction or on the floor of car showrooms. Golden Belt, an auction house based in Al Aweer, Dubai, holds car auctions every week where many cars taken back by banks are sold off. Among them are expensive sports cars such as Porsches and BMWs.

Imran Sarfaz, the managing director for Romeo Car Showroom, is a regular visitor and is always on the lookout for a bargain to buy for his used car business. "Most of the cars auctioned off by the banks are hi-tech cars priced over Dh150,000," he said. "The prices are all right."

Andrea Jaishankar, an HSBC spokeswoman, said the bank had "always adopted a prudent approach when lending". "Our credit policies ensure that risk is minimised by only lending to customers who we believe have the willingness and ability to repay," she said.

She added that should customers leave without paying off the loan, the bank runs debt recovery procedures "as per prevailing laws in each country that it operates in. If required, we will work with relevant law enforcement authorities to take action based on the merits of each case."

Ibrahim al Sukhi, the general manager of Credit Rating and Collection, a subsidiary of Al Qudra Holdings, a collection agency employed to recover debts, said his services were much in demand with the number of clients on the increase.

He said the rising numbers of cars being abandoned at airports was "symptomatic" of the number of people "living beyond their means" and getting heavily into debt.

"We are doing a lot of marketing on this now, trying to educate people on managing their finances. Many people are leaving the country and, in turn, leaving their debts and cars behind. Unless we have the power to be involved, this will just get worse."

Quote end


Note: Opinions expressed in comments are those of the authors alone and not necessarily those of Daniel Pipes. Original writing only, please. Comments are screened and in some cases edited before posting. Reasoned disagreement is welcome but not comments that are scurrilous, off-topic, commercial, disparaging religions, or otherwise inappropriate. For complete regulations, see the "Guidelines for Reader Comments".

Submitting....

Submit a comment on this item

<< Previous Comment      Next Comment >>

Reader comments (45) on this item

Title Commenter Date Thread
3000 cars [99 words]Peter NorgaardAug 26, 2009 07:03160649
Cars [15 words]BMSep 22, 2009 13:07160649
Re: Johann Hari's Article [58 words]Aymenn JawadMay 21, 2009 14:33155925
Johans Views - wonder how you feel about Johans other articles? [61 words]YedJul 12, 2010 21:27155925
1The balloon of greed about to pop ? Goody, goody ! [156 words]DeniseMar 6, 2009 20:44151784
had to happen [11 words]joseph scarfMar 6, 2009 19:35151781
Hypocritical [50 words]
w/response from Daniel Pipes
GaryMar 4, 2009 09:01151608
Sheer ignorance and bias! [104 words]saraMar 4, 2009 16:48151608
Hypocritical by Gary [78 words]studer3500Mar 7, 2009 03:57151608
sara shows how angry Jews get once Isreal is criticized [22 words]John BMar 7, 2009 08:01151608
How can you agree with a 'statement' that is patently false, FACTually false? [762 words]saraMar 7, 2009 22:21151608
sara: who is making these Muslims Radicals ? [50 words]John BMar 12, 2009 23:21151608
John B- Blaming the victim [364 words]saraMar 13, 2009 20:19151608
John B- Here is a sermon proving that Muslims hate Jews regardless of Israel [276 words]saraMar 17, 2009 23:55151608
Der Spiegel reports "Jews are strictly banned" from Dubai - so I'll be boycotting it, too. [29 words]John PMar 3, 2009 09:04151523
boycott dubai good so you should . We don' t partiularly care. [21 words]unknownJun 12, 2009 19:38151523
Old article and not true [35 words]NDJan 3, 2010 15:11151523
We are not insulated in USA [45 words]OccidentalistFeb 28, 2009 05:59151329
Dubai's drop -NOT----> JUST A REALIGNMENT WITH THE OTHER ANTISEMITES/ANTI-ISRAEL STATES... [773 words]JKFFeb 27, 2009 22:19151314
Dubai is Islamic state ! [115 words]Anne-Marie DelcambreFeb 27, 2009 13:11151294
Re: Dubai is an Islamic State [186 words]khalidFeb 26, 2010 17:52151294
Same old story [76 words]Shawn CohenFeb 27, 2009 08:26151283
Dubai's Dramatic Drop [28 words]Dr. Carmen WaggonerFeb 26, 2009 21:07151268
Athletes [64 words]DonFeb 26, 2009 19:51151266
Foreign workers in a foreign land [139 words]Richard B.Feb 26, 2009 15:23151244
Dubai [13 words]Jon PurizhanskyFeb 26, 2009 13:34151234
A small correction/addition [58 words]huckFeb 26, 2009 09:20151223
Not updated on over a year? [21 words]Ernest LaneFeb 26, 2009 09:04151222
Andy Ram [45 words]Joel KatzFeb 26, 2009 08:23151217
What a pity [23 words]JenniferFeb 26, 2009 07:02151215
Dubai now [36 words]firozali A. MullaFeb 26, 2009 00:49151202
1Not Quite That Bad [237 words]
w/response from Daniel Pipes
Ken WiseFeb 25, 2009 23:53151196
Ken Wise is a journalist? [36 words]Jan McDanielMar 1, 2009 15:08151196
Dubai [76 words]MonaMar 3, 2009 01:32151196
Ken Wise - you are wrong [98 words]B.K. NambiarMar 18, 2009 06:31151196
Abandoned Truth [862 words]B.K. NambiarMar 19, 2009 01:46151196
Facts and Impressions [239 words]Ken WiseMar 21, 2009 07:50151196
6Dubai is where the Dajjal (anti-christ) will come from [62 words]Deen MuhammedFeb 25, 2009 23:51151195
I thought it was an Iranian well.. [84 words]donvanMar 2, 2009 12:46151195
Dreams Are Made Of This [286 words]Abu NuwasFeb 25, 2009 23:38151194
Are Dubai' problems the destiny of all oil-rich Islamic countries? [283 words]
w/response from Daniel Pipes
Stuart FaginFeb 25, 2009 23:07151193
3000 fictititous cars [72 words]
w/response from Daniel Pipes
Clifton ChadwickFeb 25, 2009 23:02151192
Fictitious Remarks [576 words]B.K. NambiarMar 19, 2009 01:32151192
Wealth with all its glamor and glitz is exposed as being irrelevant [38 words]vigilantFeb 25, 2009 19:14151178
Loved this article [13 words]SvetlanatchkahFeb 25, 2009 18:56151176

Comment on this item

Mark my comment as a response to Abandoned Truth by B.K. Nambiar

Email me if someone replies to my comment

Note: Opinions expressed in comments are those of the authors alone and not necessarily those of Daniel Pipes. Original writing only, please. Comments are screened and in some cases edited before posting. Reasoned disagreement is welcome but not comments that are scurrilous, off-topic, commercial, disparaging religions, or otherwise inappropriate. For complete regulations, see the "Guidelines for Reader Comments".

See recent outstanding comments.

Follow Daniel Pipes

Facebook   Twitter   RSS   Join Mailing List

ADVERTISEMENTS

eXTReMe Tracker

All materials by Daniel Pipes on this site: © 1968-2018 Daniel Pipes. daniel.pipes@gmail.com and @DanielPipes

Support Daniel Pipes' work with a tax-deductible donation to the Middle East Forum. Daniel J. Pipes