Questions & Answers
Consequences of defaulting on a bank loan
Hi Sir
Hope everything is well.
I just want to know information with regards to civil cases related to defaulting on a loan.
How is likely a bank to file a civil case with a minimal amount, let's say AED 50,000?
In case the bank has filed a civil case against an individual, normally how long (months or years) would it take to reach the final judgement?
Is a travel ban attached automatically? Will your visa status be affected?
Another question, what is the right of a debtor to abusive debt collectors?
Can a debtor sue a collector sharing information about your debts to third parties like to workplace, friends and family members?
Thank you
Dear Sir/ Madam,
Thank you for reaching out to me on this.
Please note that in law, a person can file a dispute for as low as AED 1/- too. The law does not differentiate on the quantum of the claim.
Hence the bank does have a right to file a civil case, however, whether they are "likely" to file one depends on case to case basis and difficult for me to predict.
In a civil case, there is no travel ban issued automatically, instead the plaintiff can apply for a ban and decision to enforce is at the discretion of the Judge.
However, after judgement, the execution department applies a travel ban.
If the collection department is harassing you or breaching privacy, then you can file a police complaint at the nearest police station.
I trust you will find this helpful.
Regards,
Hari Wadhwana
