Questions & Answers
Questions & Answers
8 available 8 • View allConsequences of defaulting on the payment of loan EMIs
10
Q: I have a personal loan with a bank amounting to approx. 180000 (Principal) post deduction from my end of service benefits. I was terminated from work on 10 Sept 2018.
Right now I am in India. My first EMI got bounced on Feb 2019. Please help me know what is the maximum punishment by the court in such a case. As of now, I am jobless.
If I come to Dubai to search for work, will there be a travel ban to exit from the UAE?
How can I extend my stay in Dubai as I will enter the UAE on a visit visa?
Can a settlement be through the insurance company as I was terminated by the company?
As of now, there's almost no chance to get any work in the UAE. Hence I am bankrupt.
What I can do in such a case?
Will I be able to work in the UAE and get a work visa if a case is registered?

Mar 25, 2019
1485
Negotiation for the restructure of a loan with bank
3
Q: I have a personal loan at Dubai Islamic Bank. I was paying regularly but in 2016 me and my wife were having financial difficulties so I skipped 2 payments.
I kept paying regularly after that and wasn't able to catch up on that missed payment, and when my company was about to renew my visa, there was a case filed against me by the bank, so I got jailed.
To to cut it short, I paid an amount that was placed on what I am assuming the security check.
But until now they are still calling me and asking me to pay the remaining amount of my loan and threatening that they will file up another security check to got me jailed again.
I am very concerned and stressed as I am traveling by December of this year.
Kindly help please.
Thanks.

Nov 29, 2018
5180
Settlement of a bank loan before returning to the UAE
4
Q: Hi Sir,
I have a personal loan from a bank with an amount of AED 100,000/-. Due to my health issues and family issues, I left the UAE and now in my home country.
I don't have much money left with me as I had so much family issues where I spent the money, and now I do not have enough money to pay back the loan.
I want to come back to the UAE. Is there any way to solve the issue?

Sep 15, 2018
3290
The possibility of lowering the outstanding bank loan upon settlement


2
Q: Hello,
I left the UAE more than a year ago after losing my job and leaving behind a pending amount of AED 400K from a personal loan at a bank (a police case and a ban is already in place), of course.
Now, the ACC is showing a higher amount due to fees. However, I was told that banks might consider settling the matter for lower amounts of the pending.
Therefore, I am wondering if someone has experience in negotiating these bank debts in the UAE, and if that information/possibility is true.
Thank you in advance for your time and support!



Sep 14, 2020
604
Traveling to Dubai for a long weekend while there are some debts

1
Q: I have left Dubai in 2016 with some debts over 500k. I am repaying a small amount every month.
I did a check with a lawyer at the moment. There is no travel ban against me and my UAE bank mentions that all legal action against me is kept on hold as I am repaying.
Can I travel to Dubai for a long weekend?


Jun 9, 2021
504
How to get legal assistance to settle a civil case filed by the bank against a loan?

3
Q: Hi,
I had taken a personal loan from a bank (it's now under a different name) back in 2018 for AED 260,000. Then I left the country and continued to pay for a while, but then I couldn't and now in Dec 2020, they have filed a civil case.
I would like to know if I hire a lawyer for my case to clear, would that help to solve the issue or should I try contacting the bank to negotiate?
Not sure if the bank will negotiate to close the outstanding as I was told by a friend that banks have insurance on the debt that is lent.
And if there is a civil case, they can claim insurance for the lost money rather than negotiating especially after a civil case is registered. Is that true?
I want to clear my name at the earliest but I don't have that much money (now AED 293000 with interest and late fee).
In a civil case, what are the proceedings if I hire a lawyer? And does it help to get the amount of payment lowered?
If so, how much lower can the court order to close the case and how long would it take?
Thanks.


Feb 7, 2022
1075
How to deal with a credit card case after transferring it from the UAE to the UK?
1
Q: Hi,
I am a UK resident. I was previously living in Dubai until 2017. I was deported from Dubai in 2017 on a nonfinancial related case.
When I was deported, there was an outstanding credit card balance on my Emirates Bank which I couldn't pay off and now a UK-based company has filed a case in CCMCC UK courts to recover the amount.
So my questions are:
1. Does the company in the UK require a Dubai court to peruse this case in the UK?
2. How can the UK courts accept a financial settlement case (credit card) without formally confirming if the case is filed in Dubai or the UAE?
3. Can the bank still peruse a case against me if I was deported by the UAE courts as I did not abscond or flee the UAE?

Jul 18, 2022
399
Bank files a case despite seeking help during rent downturn - Need advice

1
Q: Dear Sir/Madam,
I took a secure loan (AED 400k approx) against my property about 6-7 years ago.
I had been paying all installments till the sudden downturn in rents in 2019 when I approached the bank for a solution.
Now in 2023, my bank has filed a case in Dubai courts against me without any substantial discussions or negotiations. I have been asked to meet on 21st Feb on a Zoom call since I am overseas.
Can you please offer some advice on what I should do?


Feb 19, 2023
125
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

Other answers by
109 109 answers •
View allCancellation of SPA for delay in delivery and defaulting on payments 0
Hi
I bought an off-plan property from a developer in downtown during the peak time. My payment plan was based on construction with completion being Dec 2019. I have paid more than 50%.
I requested the developer to readjust my payment plan as the project is delayed. They moved on payment forward and sneakingly changed completion date to Aug 2021 in the document. The SPA still says Dec 2019.
Now I'm struggling to pay the next payment due to COVID-19 and project is completed 56% as par Dubai land department and 60% as per the developer. The developer is asking for payment and calling me every day.
My question is can I still use the delay in the project as a clause to cancel my unit?
Can I cancel my apartment and how much can the developer deduct?
After selling me, the developer started offering customers post-handover payment plans for 4 years, which is very unfair as even if I complete my payment, no one will buy from me as the developer is selling something with 4 years post-handover.
Can legal help be provided in this regard?
Jun 7, 2020
883
Easy way to know whether a job offer is real or scam 0
I am a health professional in Canada.
Years back, I posted my CV to work in the middle east on a job site in the gulf. Last week, I got 3 emails claiming from a general hospital in Abu Dhabi, a hospital Dubai and another medicare hospital in Dubai for online recruitment.
they showed interest in my CV. All emails were from free accounts (gmail.com address). I chose then to forward an email to the concerned HR department of the concerned hospitals.
I forwarded one email to the official email of one of the hospitals (as given on the hospital site). They replied and said, yes, the email is legitimate and you can apply with confidence.
Now I got an offer letter from Dubai hospital with handsome salary offer but from a Gmail address. They're asking me to start position in one month only and asking to contact a travel agency based in Dubai.
Is it a scam or true? I have forwarded the email to the HR department of the hospital to determine authenticity.
Jun 7, 2020
14634
Employee rights in case of changing an unlimited contract to a limited contract 0
Hi,
What is the law if an employer wants to change a contract from an unlimited to a limited contract?
Is the employer liable to pay the 3 months arbitrary dismissal (if valid) + other monies owed prior to changing the current unlimited contract to a limited contract?
Jun 7, 2020
4880
Terminating the SPA and claiming refund for changing specifications 0
Can a developer change the layout of the building as shown at the launch event and part of all brochures/online advertisements/model under the pretext that the same is not included in the SPA?
For the launch, we got convinced with the building design and layout but at delivery, it’s changed without prior intimation.
Can I make a legal case or can they take the guise that it’s not part of the SPA?
Can I get a refund for the 30% advance payment and refuse possession of the unit?
Jun 8, 2020
702
Inability to continue paying the installments of a property because of COVID-19 0
Hi sir,
I live in the UK. I am an investor and a broker for a property development company. One of my customers bought an off-plan property from it i.e just Cavalli Villa 2 years ago. 33% was completed and handover is due in 2021.
My client paid part of the deposit around AED 390000 (£80000) and she has been paying to the project for the last two years until early this year when COVID- 19 hit the UK. Since then, she has been ill and lost her job and, therefore, she is unable to pay.
My customer received a letter from the company saying that if the outstanding amount is not paid within 30 days, then they will take her to court. They say that they would cancel her plot and she will lose all MONEY paid so far.
My client needs payment delay until her situation improves but this request has been declined. The money secured under the ESCROW account. Can the developer have the power to take money from the escrow account?
What is her right under Dubai law? Can she do anything to avoid court order? The UK is in lockdown at the moment with no proper or normal banking functions.
Thank you!
Jun 9, 2020
1516
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