Questions & Answers
The consequences of defaulting on a loan in Dubai
Hi mam,
I had a loan in Dubai. I paid for some but then I couldn't pay for it anymore.
They filed a police case of a bad faith cheque, amount of 78000 AED, what is the punishment in this case?
Please advise!
Thanks!
Criminal cases are offenses punishable by a jail term and/or paying a fine for carrying out the “criminal act” of crimes like dishonoring a cheque.
Civil cases are cases of legal rights and legal obligations between the parties requiring monetary damages or specific performance by the judgment debtor.
For loan matters, the bank may file a criminal case for a returned cheque and a civil case to claim the loan/amount provided.
If the police calls, it is for the criminal case. Since the amount is less than AED 200000. All you have to do is to pay the fine (if more than AED 200000 then jail and fine) and the criminal case will be over, but the bank can also file a civil case.
This means that you cannot leave the country until you pay.
