Questions & Answers
Questions & Answers
6 available 6 • View allWhat to expect in a police case due to loan default
10
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

Oct 11, 2018
9045
Paying fine does not cancel the financial liability of a debt
5
Q: Hello
I am writing to ask about a civil case, I recently went on maternity leave and my company does not pay a salary in this period.
The bank filed a criminal case so I was stopped at the airport on arrival and processed at the police station.
The next day I went in front of a judge who asked if I had the money to pay at that time or pay a fine, so I paid the AED 10000 fine.
It's been almost 3 months and the bank keeps increasing my debt (my account is on minus).
Question is, should I go to court again to ask them to get the bank to issue a clearance certificate or what should I do?

Dec 24, 2018
4297
How to avoid a case by the bank for defaulting on loan instalments?
2
Q: Hi Sir,
I have a personal loan with a UAE bank, the amount was AED 240k. I paid 6 months, the remaining amount is 200k.
My security cheque amount is AED 288k. Unfortunately, I am not getting a salary from my company so I can't pay the EMI.
Currently, 2 months are overdue, the collection department people started harassing me.
I sent all the relevant documents to the bank related to the salary issues... etc., but no help from them.
Can I know what will be the penalty & jail term for it?
Still, I am staying here in the UAE.

Jun 16, 2021
571
What to do against a criminal case by the bank for defaulting on EMIs?

0
Q: Dear Sir/Madam,
The bank has filed a criminal case against me due to the nonpayment of EMI before three months, even without any pending payments from my side.
The court fine was paid & the travel ban was removed. Unfortunately, I could not pay the EMI for two months because of the pending salary (Outstanding - AED 72000).
This case had already been handed over to a private legal agency by the bank. Can you give any advice to survive this?
S.


Aug 31, 2021
316
Loan settlement with the bank in the UAE to stop harassment by collection agency
3
Q: Hi
I am from India and I left the UAE in 2020 with a personal loan outstanding of 300k due to my job issues, I am in the UK currently for the past 2 years.
The bank has received my end-of-service benefits and holds them. Now they are threatening me via a collection agency from India to go against my parents who have nothing to do with this loan.
They are calling them by phone and messaging to threaten me from time to time. I have complained to my bank about this bullying from this collection agency but no action is taken from the bank.
I am currently paying the minimum amount to the bank in the UAE towards my personal loan.
I like to know what action can the UAE bank take against me in the UK and in India against me and my parents.
What is the legal right the collection agency in India has to act against me and my parents?
If I can't pay my personal loan due to my financial situation, what will the consequences be?
Kindly advise.

May 4, 2022
752
What should I expect if I am delayed in paying a debt for an online shopping company in the UAE?




1
Q: Hi
I have a debt for an online shopping company in the UAE of around AED 2800 and they have informed me that it is a clear violation of the UAE Civil Transaction Law (5)1985.
I'm trying my best to pay the amount but I want to know about this law sentence and what will happen if I get delayed in paying.





Apr 30, 2024
1242
Legal blog
3 available 3 • View allBounced Cheques in the UAE: What You Need to Know in 2024 291
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.
Oct 15, 2024
221974
Failing to Honour Bounced Cheques in Loans and Other Transactions 8
An interview-format article covering the topic of loans and bounced cheques in the UAE. This is from the legal podcast of lawyer Ludmila Yamalova, the founder of Lawgical with LYLAW.
Jan 15, 2020
7038
An Overview of the New UAE Labor Law and Recent Amendments of 2024 233
The UAE has adopted a major reform in its legislative system that brought about 40 new laws and amendments to the company law, criminal law, personal status, among others. The amendments aim to develop the legislative structure in various sectors, the labor law being one of these, was the most recent. We try in this article to shed light on the changes introduced with the new labor law and their significance on both, the employer and employee.
Sep 10, 2024
90392
Laws & Regulations
3 available 3 • View allFederal Law No. (3) of 1987 Promulgating the Penal Code 29
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.
Dec 8, 1987
47903
Federal Law No. (5) of 1985 On the Civil Transactions Law of the United Arab Emirates 96
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.
Dec 15, 1985
148367
Federal Decree Law No. (14) of 2020 Amending Certain Provisions of the Federal Law No. (18) of 1993 Concerning the Commercial Transactions Law 4
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.
Sep 27, 2020
3530

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451 451 answers •
View allAre there any restrictions on a diplomat buying property in the UAE? 0
Hello,
Is there any restriction on a diplomat buying property in the UAE, where he works as a diplomat at his country's consulate?
Feb 20, 2025
71
If someone has a case in the UAE, can they travel to another GCC country? 0
Hi.
One of my friends joined a Telegram group. They said, "We will transfer some amount to your account, and your task is to transfer this amount to another account. Once the task is completed, you will get 30 or 50 AED per task."
He completed 3 to 4 tasks, but he realized it was not good, so he stopped. After one week, when he opened his account, it was blocked, and the bank said, "We are conducting an investigation; after this, we will let you know."
After some days, he had an accident and went to his home country. He then received a call from a landline number, which was from the Abu Dhabi police station.
They said, "We have received a complaint against you; come to our investigation department." However, due to his surgery and treatment, he could not go.
After some time, his bank account was reopened, and he did not receive any further calls. I want to know, if he comes back to the UAE or goes to any other GCC country, will he face any problems?
If someone has a case in the UAE, can they travel to another GCC country?
Please advise!
Feb 17, 2025
136
What can I do if my employer refuses to pay me and I have no contract? 0
Hello,
What legal action can I take in case the employer refuses to pay my salary and I don't have a contract with them?
Feb 18, 2025
123
I want to open an online shop. Do I need a license to open an Etsy shop? 0
I currently live in Sharjah and have a UAE residence visa but I am not a UAE or GCC national. I want to open an online shop (Etsy or Shopify) to sell handmade items, such as crocheted goods, bookmarks, greeting cards, etc.
Do I need a license to open an Etsy shop?
If so, which license do I need to sell my products online, including UAE and worldwide?
How much would it cost me?
Can I keep my residence visa (sponsored by my father) and not change it?
Feb 14, 2025
119
How can we locate a person with an ongoing legal case? 0
Hello,
I am seeking your legal advice regarding a friend who was previously imprisoned in Abu Dhabi. His case there is now closed, but he has another ongoing case in Dubai.
Currently, we have lost contact with him and are unsure of his whereabouts. How can we check where he is or access any other legal facility?
Are there legal procedures to locate a person with an ongoing case?
What steps should we take to get more information about his status and legal position?
Feb 11, 2025
144

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Other answers by
1544 1544 answers •
View allCan a person with a UAE criminal case travel to another GCC country on a work visa? 0
Hello,
If a person has a criminal case in the UAE, can he or she travel to any other GCC country on a work visa?
Apr 7, 2025
171
Missing business partner since 2003. What to do about his share in the LLC? 0
Hello,
I am a manager of an LLC company with 25% share. In February 2003, a partner joined the company with a 25% share.
After two months, he didn’t like the company and left. After two years, we did not know where he was. We just heard that he left to Tunisia before his visa expired.
What to do with his 25% share, please?
Apr 7, 2025
127
Can a Pakistani expat register a second marriage in the UAE without disclosing the first? 0
Hello,
I want to know the UAE rules regarding second marriage for expats. I am a Pakistani national and already have a wife back in my home country.
Now, I want to do a second marriage in the UAE with a Moroccan girl. Can you please let me know the procedure involved?
Can I get my marriage registered in the UAE? Is it mandatory to disclose the first marriage? I am on an employment visa in Dubai.
Apr 7, 2025
133
How much time do I have to start paying after the verdict in the appeal court? 0
Hello,
How much time do I have to start paying after the verdict in the appeal court?
And what's the probability of freezing my account or traffic file if I’m paying?
Apr 11, 2025
78
Can an employer post an employee’s photo on social media without their consent? 0
Hello,
Can an employer post an employee's photo on social media, LinkedIn or Instagram, without the employee's consent?
Secondly, the employer is forcing the employee to update the company details in the employee's profile.
I believe LinkedIn and Instagram are personal profiles and one cannot be forced to update the details. This photo was taken in the office.
Apr 11, 2025
24
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