Q: Dear Sir, I have not paid a loan amount of AED 82000/- due to job loss. The bank is threatening to deposit a security cheque for AED 220,000/-. How will the bank deposit more than the outstanding amount? If the amount exceeds the cheque amount of AED 200,000/-, what is the next action by me? Please clarify Thanks and regards Seshad

Q: Dear Sir, I was working in Jebel Ali free zone Dubai and I lost my job in 2015 due to company downsizing, and I had a loan from a bank which I was not able to pay off. I tried looking for a job when I was in Dubai during my visa cancellation process but was unsuccessful. I came back to my home country after, but when I came back and I had an accident and now after recovery. I was trying to get a job in the UAE and pay back the bank outstanding but no good luck for me. And now, I got an offer from one company in my home town. I just wanted to know how to handle the above issue after few people visited my home town and said we are from recovery and they are threatening my mother saying they will bring more people to recover the payment. Kindly advise what the UAE law said regarding the above issue. I even sent to the bank regarding paying back the payment if I will get a job in hometown and get salary in Pak. Rs. But till now, no reply from the bank regarding the above request. Please, give your expert opinion.

Q: I defaulted on a loan plus credit cards. I have left UAE almost a year ago and stopped paying my loan and credit cards. The security check I have issued was AED 350,000 but the outstanding loan amount was only 181,000. Now I got a job offer and I am trying to discuss with the bank the settlement plan. The bank advised me that the total outstanding including two credit cards is 240,000. They are not cooperative and do not respond on time. If I sign the employment contract and travel to the UAE, what are my chances? 1. Will it be possible to be jailed? Denied a work permit or employment visa? 2. Will it be possible for me to negotiate an installment plan with the bank or pay fine and get released? Please advise! Thanks

Q: Hi, Now I’m in India since 2018 and have a cheque case in the UAE (Amount AED 350000). I had given ‘X’ party a cheque and they discounted from the bank, but the bank has filed a case under my name and X party holder name. During my absence, the court has already judged 18 months in jail. So how can I clear the case with the use of a POA without my presence?

Q: Dear Sir/Madam, I was living and working in Dubai and had a personal loan in the amount of AED 1,000,000. I was paying my monthly payment of about AED 23,000/month regularly but then I lost my job. I went to the bank and informed them about the job loss and asked for restructuring. They restructured and brought my payment down to 13,000/month. I paid for 2 months but could not make any more payments since I ran out of money and have now defaulted. Is there a way for someone to help or guide me on a way out of this situation? I can afford to make a payment of AED 4,000/Month.

Q: Dear sir/madam, I am late with a partial EMI payment due to the loss of my job knowing that I was never late for any payments for 13 years and all my end of service was paid to the bank. Now they keep saying that since I cannot give an actual date of providing the left payment, they will take immediate action and open a police case. Why are collection teams given the right to threaten and mistreat customers and always use criminal cases immediately?

Q: Hi, I have 2 credit cards in the UAE. Due to Covid-19, I returned to my home country without paying my dues. When I was requesting a credit card, I provided my brother's mobile no and address in my home country to the bank person. Now randomly, the bank is contacting my brother about my bank dues. The issue is my brother wishes to come to Dubai for work. If he comes to Dubai, may the police or bank catch him and ask for my bank dues? Or can my brother work in Dubai without any issues and enter without any issues? Please explain to me!

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.

An interview-format article covering the topic of loans and bounced cheques in the UAE. This is from the legal podcast of lawyer Ludmila Yamalova, the founder of Lawgical with LYLAW.

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.

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.

The provisions of this Decree by Law amend the Federal Law No. (18) of 1993 by replacing Clause (4) of Article (379) as well as Articles (600), (617), (641), (642), (643), (644), and adding new articles numbered (635) Bis, (641) Bis (1), (641) Bis (2), (641) Bis (3), (641) Bis (4), (643) Bis (1), (643) Bis (2), (644) Bis (1) and (644) Bis (2). The Decree-Law also repeals Articles (401), (402) and (403) of the Federal Law No. (3) of 1987.