Questions & Answers
Avoiding civil proceedings by the bank upon criminal case closure
Dear Sir,
I had a loan of AED 20,000 and I was paying my instalment every month until I lost my job. My outstanding amount was only AED 8000 by then, but hence I didn't have a job and I couldn't pay for 7 months.
However, as I found a new job I started to pay again but a case was filed already by this time. I was jailed for 2 days and I was presented to the courts where they gave me a fine of AED 2000, then I was released.
Now, the recovery department is calling me again and telling me to pay AED 14000 as they say that's my current outstanding amount. They say that a civil case will be filed if I fail to pay. So what will happen if they filed a civil case?
Please advice.
Dear Questioner,
Please note that the previous complaint regarding the loan was a criminal one, for which you have been admitted to the jail and paid the penalty and then been released.
However, the lender has the right to file a civil case against you to claim the outstanding amount plus the relevant interest.
In many cases, they request an additional amount to be paid for all the legal expenses they incurred to recover the funds you failed to repay.
So, I advise you to speak to the lender and try to reschedule or to settle with them on the full payment of the original debt amount.
Regards,
Ahmed Elnaggar
