Shortcomings in the Debt Collection Practices

Debt Collection has its own set of shortcomings due to certain unfair and inhumane practices adopted by the collection agencies, or recovery agents. Moreover, the not-so-strict regularities governing the businesses doing Debt Recovery make them a bit unconcerned towards following rules and regulations. Hence, an exploitive debtor treatment is quite a norm among a considerable number of collection agencies for quick recoveries. Moreover, numerous cases have been reported by the victimised debtors where they have been harassed, and mistreated. In addition to it, blackmailing is often done to negatively influence the debtor in a bid to make him pay his outstanding dues.

All these actions violate the sanctity of basic human rights. Hence, they are strictly discouraged by the legal system of the UAE and considered as a violation of the law. All these malpractices result in a mental, physical, and emotional trauma for the victim. They have serious consequences that put the victim’s health, life, peace, honour, stability, and sanity at risk. Considering all these aspects, certain policies were laid down that prevented the debt collectors from traumatising the debtor in lieu of effective procurement.


Fair debt collection policies restrict the recovery agents to realise their professional boundaries and be aware of the rights and entitlements of their subject i.e the one who owes the debt to the creditor issuer. Moreover, these guidelines offer a certain protection to the debtor against exploitative debt retrieving companies. The harrowing experiences of debtors with debt procurement agencies prompted the legal systems of the UAE to give some legal cushion to the victims in case they face an unprofessional, law-violating, and blackmailing attitude of the collection agencies.

However, the procurement profession still needs to be regulated more strictly, and managed more authoritatively to make them abide by their legal, and professional responsibilities while performing their work strategies.


The legal system of the UAE needs to have a stricter check and balance system when dealing with the procurement practices and recovery agencies. Moreover, a detailed legal framework should be laid down to give legal protection to the victims of the debt parties and a reprimand system for the collection companies in case they are found guilty of law violation.


Coercion and oppression never yield the desired results in terms of debt collection. On the contrary, an inhumane procurement attitude never impresses the debtor audience. They seldom comply to the debt collectors demands. Some might get influenced for the fear of losing their honour, respect, societal status, and a chaotic future. However, the desire intimidate, or negatively influence the debtor via force and humiliation never pays off. It not only yields catastrophic results for the debtor but also to the credit-issuer who loses future business prospects with the debtor client in question. Moreover, a negative propaganda gets associated with the credit-issuing company for using cruel means to clear its outstanding bills.

Such a controversial market position endangers the profitable operation of the credit-issuing company. Nobody wants negative publicity. It has a devastating impact on an individual’s careers as well as the collective market value of any firm.

Hence, credit-issuers ensure that their hired collection agencies don’t destroy their chances to do future business with the debtor clients. It is only possible if they adopt a professional procurement attitude and design such strategies that do no abuse, exploit, or mistreat the debtor in any way.


The objective of debt collection is to recover unpaid debt amounts, or outstanding bills in a professional manner. The intention should not be to overpower the debtor, or use coercive measures against him to get back the owed amounts. Although the debt amounts are legitimately the creditor’s so he can rightfully claim it. However, he cannot use such measures that sabotage the rights of the debtor in any way. He can either use his own efforts to persuade the debtor to pay off the remaining debt amounts or outsource professional help.


However, it is important for the original credit-issuer to relay it to his hired help to procure the amounts using inventive recovery tactics instead of exploitative measures. He should have a discussion session with the collection agents regarding the intended scheme they wish to adopt regarding debt recovery. It is important to stay informed and aware regarding the manner in which your hired help approaches your clients. This awareness also helps you in monitoring the recovery agents so that they don’t hurt your business goals by maltreating the debtor clients.