Q: What could be consequences if my rental cheque is returned? Do I have 2-3 months after the date of the cheque to arrange the necessary amount? What is the worst case scenario for me?

Q: Hi, I took a loan from a UAE Bank for AED 450,000, I now have AED 230,000 of the loan outstanding. Due to delay in my salary, I missed 3 instalments and the bank deposited my security cheque for 600,000 AED and it bounced. My bank filed a case with the police 10 days ago. I went to issue a visa for my daughter and was informed that I can not complete the application as I have a police case for bounced cheque 10 days ago against me in Qusais Police Station. I am trying to get refinance from my bank, assuming the refinance doesn't go ahead, kindly advise: 1- When would it be likely to get called to the police station (how many days typically after a case is filed). 2- When called the first time, am I likely to spend time jailed in a police station or can I walk out the same day if I surrender my passport. 3- Will a fine be imposed? 4- If this goes to court, what is the likely sentence? 5- Is my liability to the bank AED 600,000 or 230,000 AED? I intend to pay in full over 2 years

Q: Dear Madam, Please advise me, I have a credit card and I used up to AED 50000 for the last three years. I was paying monthly the minimum instalment. But now for the last 5 months, my salary is delayed so I did not pay the instalments. Please advise what action can the bank take and what do I do to solve that action. Thanks

Q: Sir, My security cheque of AED 219,000/- was bounced by the bank at Bur Dubai police station. I have not received any call or information from the police station. I took a personal loan of 150000/- I paid 139000/- balance pending is 84000/- with interest. Two days back, I have received an email as a demand notice from the bank for payment of outstanding due 84000/-. What do I have to do in this situation? I have no information from the police station also. Should I negotiate with the bank or avoid the notice? Please reply. Thanks and Regards K.

Q: Hi Hari, Good Morning! I have 4 credit cards and the total limit is around 80 thousand AED. I defaulted and stopped paying for 6 months. I got a message that the bank is going to file a civil case. Is there a chance of four different police cases against me? Please advise, is it possible they can book a civil case for the sum of 80 Thousand?

Q: I missed my bank credit card payment for the last two months. How long will the bank wait before taking any legal action? Also, they do not have a security cheque from me. So what can they do exactly in this situation?

Q: Hi, I have a credit card debt that I have not been paying regularly. Only every other month. But I am still paying. The bank says they will file a police case against me every time. They call every month. Can the police come to my office to arrest me if they file a case? My debt is AED 12,000 on the card. Thank you for your answer.

Q: I got a call from police yesterday said I should come today to give a statement they didn’t tell me what it’s about. I’m freaking out, all I know is I owe Etisalat. Apart from that, I don’t have any issues here. Can you help?

In the UAE, cheque bounce is a very frequent problem faced by people during their span in the country. It is covered under the purview of Commercial Transactions Law, and legal implications/penalties can be financially severe and daunting for more “serious” offenses. Bounced cheque issues may arise in a variety of commercial transactions, including but not limited to, companies’ exchanges, bank loans, property rents or purchases, and individual transactions.

This Law promulgates the Federal Penal Code (Criminal Law) of the United Arab Emirates. Crimes and chastisement punishments shall be determined in accordance with the provisions of this Law and other penal codes.

The provisions of this law, promulgating UAE Civil Code, govern the civil transactions in the United Arab Emirates. The commercial transactions remain subject to the laws and regulations applicable in their regard.

The provisions of this Decree by Law amend the Federal Law No. (18) of 1993 by replacing Clause (4) of Article (379) as well as Articles (600), (617), (641), (642), (643), (644), and adding new articles numbered (635) Bis, (641) Bis (1), (641) Bis (2), (641) Bis (3), (641) Bis (4), (643) Bis (1), (643) Bis (2), (644) Bis (1) and (644) Bis (2). The Decree-Law also repeals Articles (401), (402) and (403) of the Federal Law No. (3) of 1987.