Questions & Answers
Questions & Answers
8 available 8 • View allPenalty for a bounced cheque after defaulting on loan instalments 
6
Q: Hi Sir,
Please, I need your help.
I had a loan from FGB bank. I almost paid instalments for three years. Now, I am not in that condition to pay. There are 3 instalments due and I am getting calls from the collection and they are about to file a case.
Could you please help me to know the penalty I may get, as my outstanding amount is just AED 24K?
I have an Abu Dhabi visa, and they threatened to file a case in Sharjah.

Dec 11, 2017
12271
Can the bank deposit my security cheque if I fail to pay 3 loan installments?
9
Q: Hello,
I am 3 months behind on my bank loan with FGB. I have told them that I can pay up 2 months on THURSDAY 2nd Nov 2017. The loan is in my business name and they are threatening to deposit the security cheque of 330,000 Dhs for the outstanding full balance of 250,000 Dhs.
Can they do that? Is that even legal?

Oct 29, 2017
8206
Consequences of a bounced security cheque after failing to pay loan installments
2
Q: Good day,
Look forward to your kind legal advice for my query below.
I am a resident of Dubai (Indian national) and I have an outstanding loan of AED 120000 with ADCB bank and they had bounced my security cheque on 15.11.2017 with amount mentioning AED 1400000 as I have defaulted last 3 EMI's (including November).
I tried my best by consulting bank's collection executives saying I can pay 1 EMI right now and remaining in next few days but no use.
What will be the lead time for them filing a case against me?
Can I walk out of police station by paying fine? If yes, how much?
If sentenced, then how many days/months will I be in jail?
My residence visa expired on 17.11.2017 and company said they will renew in next few days. Will it affect me coming out by surrendering passport?
Can I change job & visa if I have a case against me open?
Looking forward to your kind advice and suggestions so I can plan accordingly.
Many Thanks,
HK

Nov 27, 2017
5949
Criminal and civil cases for defaulting on a bank loan
28
Q: Hi.
I would like to ask a question.
I had a bank loan in 2013, and due to crises, I lost my job in 2015 and couldn't continue my loan instalments.
But now, I got a job in Dubai, and before coming to Dubai I spoke to the bank from my home country to remove police case and allow me to come to Dubai. The outstanding amount was AED 68K.
The bank gave me a release letter with the help of Central Bank on the condition that I will continue my loan instalments, but my salary is not that big to be able to continue.
So now the bank is telling me they will make a travel ban and civil case against me.
My question is if bank files a case and I pay a fine in court against the cheque bounce, will the central bank or local bank still make another case or travel ban?
Please help me and give your advice.
Thank you

May 2, 2018
31843
Expected legal actions for defaulting on a bank mortgage
1
Q: I have a property mortgage loan that I have paid for its instalments over more than 3 years without any failure. However, due to my financial situation, I will not be able to pay any more, because my income turned to zero.
I need to know the legal actions they can take against me.

Jun 26, 2019
987
Filing a case and repossessing the property if the client defaulted on an installment
1
Q: I have a mortgage of 1.3m with a bank. It is a lease and the property is registered on my name. At the moment, I live outside the UAE and cannot sell the property because of COVID-19. There is a 40-day delay with payments - 1.5 installment is due.
The bank sent me information to clear the outstanding amount within 1 day or they will start a police case and repossess the property.
Is a 40-60-day payment delay long enough to start a police case and repossess the property?
What can I do to avoid consequences? I can settle the outstanding amount within 15 days.
I plan to sell the property when the borders get reopened.

Jun 21, 2020
846
Consequences of failing to pay full loan instalments to the bank
3
Q: Hi Sir
I had taken a loan from a bank in September I was paying proper instalments until March. After that, I could not pay full instalments.
Now the bank called me saying that they will be depositing the cheque and go for legal issues.
Kindly let me know what are the cheque bounce consequences. I am afraid.

Aug 13, 2020
906
Depositing the security cheque by bank due to failing to pay a loan installment

2
Q: Can the bank deposit my security cheque if I fail to pay any loan installment?
How do I act in this situation?


Jun 9, 2021
451
Laws & Regulations
2 available 2 • 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
47905
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
148370

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