Questions & Answers
Consequences of credit card debts in the UAE
Hi
I am working in Dubai and I have a credit card with limit 10000 (which is fully used) and a personal loan of AED 37000 balance with a bank.
The last 9 months, I was having problems with my job and was not able to pay my credit card minimum amount, but I have not defaulted on my loan amount.
Yesterday, I got a call from a legal agent claiming to file a case for the credit card. I am not in a situation to pay both the dues together but I can pay my credit card dues once I settle my personal loan which is 3700 x 10 more months.
How to resolve the issue?
If they file a case against me, will I be imprisoned for the said amount of AED 10,000?
Dear Questioner,
Please note that the bank may file a criminal and civil case against you.
The criminal case is for issuing a cheque in bad faith. The bank has all the right to file a civil case also.
In practice, banks are reluctant to file a civil case for small amounts.
For small cheque amounts like AED 10,000/-, fines are issued and you pay this to close the criminal liability.
Regards,
Rajasree Ravivarma
