Q: I had taken a loan from a bank. I could not pay full instalments. Let me know what are the cheque bounce consequences… A: If you miss 4 instalments, they will deposit the security cheque and if it bounces, they will make it a criminal case and you have to pay a fine to settle the case…

Hi, If you miss 4 instalments, they will deposit the security cheque and if it bounces, they will make it a criminal case and you have to pay a fine to settle the case. After that, the bank will try a civil case on you along with a travel ban. Keep writing to your bank and keep records and also try and make the minimum instalment for your loan. Make a complaint with your bank customer care and then make a complaint on the central bank website also.

Consequences of failing to pay full loan instalments to the bank

Questions & Answers

Questions & Answers

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What happens when you fail to pay bank loan instalments?

Q: What happens if I failed to pay 3 instalments from my personal loan from the bank?

Jan 24, 2018

13653

Failure to pay a personal loan and consequences of the civil case

Q: I am an engineer and I was working in a construction company in Dubai where I am based. I have issued a cheque of AED 150,000 for a personal loan with a bank. Due to the lack of work and the company terminated me for 2 months, I am suffering from my personal loan and the bank filed a case now. 5 months back, they filed a case which I don't know for a travel ban and I was in jailed 4 and half days. After that, I paid AED 10000 to Dubai court after they released me. I heard that civil cases now are not punishable again by jail sentence like before. Is it true?

Jun 12, 2019

11663

Penalty for a bounced cheque after defaulting on loan instalments

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

Legal blog

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The Consequences of Job Loss and Defaulting on Financial Liabilities

The management of individual financial affairs is crucial and all the actions must be weighed down while committing to any financial liability. Whether it's job loss that may have lead to financial failure or the opposite, one must be aware of the personal liability which will not diminish by paying fines for cheque bounce cases. There are two major types of liabilities, criminal liability and civil liability. Each has its own significance, hence, must be dealt with accordingly.

Feb 12, 2019

18892

Laws & Regulations

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Federal Law No. (3) of 1987 Promulgating the Penal Code

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

47901

Federal Law No. (5) of 1985 On the Civil Transactions Law of the United Arab Emirates

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

148361

Anitha Joseph

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Getting clearance from the bank after settlement of debt

Hello there, I left the UAE in 2015 and I had a loan and credit cards paid one by one and left now with the last credit card with a bank. I was paying minimum account until Feb 2020. Then COVID-19 hit and I was not able to pay. I contacted bank but no response from their end for settlement. Now suddenly an agency started dealing with me and asking me to pay around AED 12000 which is very difficult. Please advise. I paid one bank and got clearance, paid another bank but they are not giving out a clearance letter still after much follow up. What can be done?

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