Can a UAE bank take legal action on a 15+ years personal default?

There might be limitations on the specific enforcement methods available to the bank after such a long period, but the debt itself doesn't automatically disappear.

They will try to pursue this through the court and the court has to reject it based on the reason of limitation.

In the UAE, a bank or collection agency can attempt to recover the debt, but the ability to take legal action depends on the statute of limitations.

Typically, the statute of limitations for financial cases is 15 years. If no legal action was taken within this period, their legal claim may have expired.

However, this depends on the details of the case and applicable laws.

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Hello,

According to UAE law, the statute of limitations for most civil debts, including credit card debts or personal loans, is typically 15 years for written contracts.

This means that if 15 years have passed from the date the debt was due, in general, a lender (bank) or a debt collector can still take legal action.

If at any point you acknowledged the debt (e.g., through making a partial payment, discussing repayment terms, or even verbally admitting to the debt), the statute of limitations might reset, and the 15-year clock may start again from that date.

Even after 15+ years, if the debt is still within the legal limits (i.e., the statute of limitations hasn’t been reset or expired), they could potentially file for bankruptcy proceedings or seek court orders to garnish wages or seize assets, depending on the nature of the debt and the court’s ruling.

If you are in a position to settle the debt, you could negotiate directly with the collection agency or bank to reach a payment agreement.

Depending on your financial situation, they may be willing to accept a lower lump sum or set up a payment plan.

For a detailed discussion, kindly share your Whatsapp number.

Dear questioner

Yes, still the bank can recover the amount but there are certain conditions for the same like whether they had already initiated the procedures long back ago and how it should be the continuation of the case so there are high chances to settle the case either outside the court as well as inside the court if we act prudently.

If you need our assistance in your matter kindly share your Whatsapp number.

While banks in the UAE generally cannot take legal action on debts older than 15 years due to statutory limitations unless certain conditions apply (such as acknowledgment or partial payment), they may still attempt non-legal methods like engaging collection agencies for recovery efforts.

Thank you for reaching out with your concern regarding the 15-year-old personal loan default.

In the UAE, the general limitation period for contractual claims, including personal loans, is 15 years.

This means that creditors typically have up to 15 years to initiate legal action to recover outstanding debts.

If no legal action has been taken within this period, the claim may be considered time-barred, and the creditor may lose the right to enforce the debt through the courts.

However, it's important to note that certain actions can interrupt or reset this limitation period.

For instance, if there has been any acknowledgment of the debt by the debtor, such as making a partial payment or a written acknowledgment, the limitation period may start anew from the date of that acknowledgment.

Given that a collection agency is now contacting you after such a long period, it's crucial to handle this matter carefully. I recommend the following steps:

Verify the Debt: Request detailed information and documentation from the collection agency to confirm the legitimacy of the debt and their authority to collect it.

Review Your Records: Check any personal records or correspondence from that time to see if there was any acknowledgment or payment that could have reset the limitation period.

Seek Legal Advice: Before making any payments or acknowledgments, consult with a legal professional to understand your rights and obligations fully.

I would be glad to assist you in reviewing your situation and advising on the best course of action.

Please feel free to contact me via WhatsApp or phone to discuss this matter further.

Best regards,

Suhail Rana