Can UAE debt affect my Credit Rating and Financial Status in Ontario Canada?


I have a situation where I have a debt I accumulated while living in UAE. In 2017, I was laid-off without advanced notice and could not find another job. As a result, I decided to return to Canada and look for a job here. Once, I got a job and started generating income, I contacted the bank in UAE to negotiate payments. My income level drastically dropped in comparison to what I used to earn in UAE. To a make long story short, all negotiations and proposals fell on deaf ears.

Due to the nature of the financial system in UAE, I wanted to make a new agreement where any police report, jail sentence or Interpol red notices (yes, they do them to chase after debt) are removed. I also wanted to utilize Credit Card insurance that I was paying every month for situations where I am let go of my job for no fault of my own and ending up with no income, which is the very situation I was in. The Bank refused to utilize the Credit Card insurance and all other requests I made. Also, I could not make a lump-sum payment, so I negotiated for a monthly payment and that was refused as well. This negotiation continued from early 2018 until early 2020 without any success. I have all email correspondences as proof.

Recently I received a letter from D&A Group Services introducing themselves as the duly authorized collection agency for [the name of the UAE bank]. In the letter they are threatening to damage my credit rating and taking “further action”. I have the following questions:

  1. Will the UAE debt I have affect my credit rating or bank accounts in Canada?
  2. I do not have credit cards in Canada. I only have a car loan which was very recently approved. I started paying it two months ago. Can this collection agency affect the status of my car loan?
  3. Can this collection agency take any legal actions against me in small claims court or any other means?
  4. Can this collection agency affect my employment?

Here is a format of the letter:

My name and address


D&A File # [file number]

YOUR ACCOUNT WITH: [name of UAE bank]

REF # [case reference number]


D&A PERFMIT #: [permit number of the company and it mentions that it is a Quebec permit]


This will serve to inform you that we are the duly authorized collection agency for [name of UAE bank]. We have been retained with respect to recovering the full monies on your delinquent account. In order to keep your credit rating intact and to avoid any further action being taken against you, it is imperative that you contact our office to discuss this matter. We trust that you comprehend fully the seriousness of this matter and that you will act accordingly in your own best of interest. As per the current events occurring across the county, due to COVID-19, we would be happy to discuss alternate arrangement for payment.


To discuss your account please call:

[Name of agent assigned to the case and phone number]

E-mail Address: [agent email address]

Telephone Number

FAX Number

I would like to also mention that while researching this collection agency online, I saw claims of fraudulent activities performed by them. I even saw that the agent’s name is documented in one of these cases.

I would really appreciate your guidance and recommendation on this matter.


Thank you.

Category: asked June 7, 2021

1 Answer


1. Probably.

2. As long as your car payments are made in the normal course, the car loan company won’t care.

3. They (or more specifically their lawyer or paralegal) can file a claim in small claims court (assuming the debt is less than $35,000).

4. If they report your missed payments on your credit report, this may affect your employment eligibility if your prospective employer conducts a background check after offering you a job.