Questions & Answers
Questions & Answers
7 available 7 • View allDefault on loan and the possibility of paying a fine instead of jail
34
Q: I took a loan of around AED 350,000 in Sept or Oct 2016 (24 out of 48 instalments have been paid and the outstanding amount is AED 248,585).
Last year in Aug 2017, I was made redundant from my job. The gratuity which was transferred to the bank was not released to me. That amount took care of my instalments till Sept. 2018.
The recovery person called me for the Oct. instalment but I told him I do not have a job or money to pay him. I read in the news that since last year jail term has been abolished for expatriates.
I need to know if the bank files a case against me how much do I need to pay as a fine and what is the worst the bank can do about it. I had a previous loan with the same bank and then I topped it up.
Can you tell me the fines for both Dubai & Abu Dhabi as I am not sure which region they will file the case? The bank is Dubai based but I got the loan in Abu Dhabi.

Nov 21, 2018
16238
The legal consequences of defaulting on a bank loan
1
Q: Dear Sir/Madam,
I have a loan of AED 400,000 from a bank in Dubai. I got a termination and October 2017 was my last month at work.
The bank made a case to the police for the balance amount which is AED 2500,000 as per their record. They stopped my visa procedures at my new company.
Can you advise what to do?

Mar 19, 2018
554
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
5170
Possible judgement for two bounced cheques in Dubai 



1
Q: A company cheque case was opened against me in July 2017 (Muraqabat Police Station) for AED 221,600/-.
The total amounts of the two cheques are AED 108,000/- and AED 113,600/- respectively.
What will be the possible judgement in this case as it's still pending? Can this be settled by paying fine?




Jul 13, 2020
392
The expected procedures in case of cheque bounce of high value
2
Q: I have a cheque bounce cash of AED 500000. Please help me, what to do?

Nov 7, 2020
456
How to defend myself if someone bounced my cheque more than the debt amount?
1
Q: How to defend myself if someone bounced my cheque for more than the amount I borrowed and I have paid also triple the amount?
Because he is charging an interest of 20% monthly, I'm not able to finish it and every day he is harassing me that he will deposit my blank cheque for more than AED 200,000.
What is the recourse I can pay in a civil case?

May 31, 2022
244
Can a civil case lead to jail time and deportation?


3
Q: Dear Sir/Madam,
Is a civil case punishable by jail and will send me back to your home county?
Initially, I got a criminal case due to non-payment of my loan, after which, I just paid the fine at the police station.
I am just worried that the bank can file a criminal case as I have not settled the amount.
How will I know if they file a criminal case against me?
Please advise.
Thank you!



May 14, 2023
1158
Legal blog
2 available 2 • 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
221897
Laws and Procedures Related to the Dishonoring of Cheques 7
As the civil and commercial transactions in the UAE have been growing rapidly, and due to replacing cash with other financial instruments such as cheques for big amounts of money, this had caused some hiccups at times leading to criminal and civil consequences on the person who defaults on fulfilling obligations.
Feb 24, 2020
3022
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
47894
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
148341

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My employer fired me under Article 44 for not showing up for work for 7 days in a row. But that’s not the case at all. I was sick and the management was aware and they let me go.
I went to another country to get treatment because it’s expensive in Dubai. My employer did not pay me my salary for the month I worked and fired me.
I have official sick leave from another country and there is correspondence where my employer sent me to another country for treatment.
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How to cancel the MoU to buy an apartment with the broker if the bank did not approve the loan? 0
Hi,
I have a situation where I signed an MoU and gave my security deposit to the seller's agent. However later, the bank valuation of the property is lower than the selling price.
On my MoU, it has a clause that “the buyer has a right to cancel/negotiate if the bank valuation is not the same as MoU.” I tried to negotiate, however, we didn't agree on the price so I asked to cancel.
Now the agent is threatening me that they will not cancel the MoU and that will deposit my cheque. Later I also came to know that the person I am dealing with is not the same person whose name is mentioned as a broker in the MoU.
The agent I am dealing with is constantly messaging me with threats. I decided not to speak to him and instead, I wrote an email to the broker whose name is mentioned on the MoU but received no response.
I am on a very tight timeline as I need to vacate my apartment in 3 weeks, I found another unit but I don't know if I can pursue this while the initial MoU still not canceled.
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Employer asking for visa reimbursement after resignation: do I need to pay? 0
Hello Sir/Madam,
I have already finished my first year with my company and resigned.
My employer is asking me to reimburse the cost of my visa because I did not finish my two-year contract.
Do I need to pay? The cost is 7,000 AED.
Oct 20, 2023
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