Questions & Answers
Dealing with bank loans defaults as simple crime in the UAE
Dear Ma'am,
Need your advice.
I took a loan of AED 64000 more than a year ago and currently the outstanding amount is AED 51000. But as I don't have a job now, I am unable to pay the rest.
As I know from 2019, there is no imprisonment or criminal case but if the bank files a civil case against me the fine will be around 5000 AED imposed upon me by the court.
Currently, even I don't have a single penny and I am struggling for daily expenses.
Kindly let me know how much time will the court give me to pay the AED 5000 fine.
If I can't pay the fine within 1 month or 2 months time, what will be the consequences?
Also, let me know how I will be able to lift a travel ban if the bank imposes it on me somehow.
Dear Questioner,
As you said, in the emirate of Dubai the bouncing of a cheque of AED 200,000 or less is categorized as a “simple crime” holding the penalty of a fine not exceeding AED 5,000 to AED 10,000.
Accordingly, the drawers of the bounced cheques for a value of AED 200,000 (or less) can be sentenced by the Dubai Public Prosecution directly (without being referred to Courts).
However, the sentence shall be for a fine only which does not exceed AED 5,000 to AED 10,000 (in practice).
Please note that the above doesn't mean that you will have no liability once you pay the fine. You will just be free from criminal liability.
The bank has the right to file a civil case. In case the judgement is in favour of the bank, you may request time to make payment in instalments. It is all the judge's discretion how much time will be given.
Hope the above explanation gives you clarity.
Thank you.
Regards,
Rajasree Ravivarma
