Document background
The Credit Card Debt Forgiveness Letter is a crucial document used in the United Arab Emirates banking sector when a financial institution agrees to waive or partially forgive a credit cardholder's outstanding debt. This document becomes necessary in situations where the debtor is unable to fulfill their payment obligations and the bank decides to offer debt relief, often as part of a settlement program or financial hardship arrangement. The letter must adhere to UAE Central Bank regulations, civil law requirements, and where applicable, Islamic banking principles. It typically includes detailed information about the original debt, the amount being forgiven, any remaining obligations, and the terms of the forgiveness. The document serves both as a legal record of the debt forgiveness and as protection for both parties in future dealings.
