Questions & Answers
Questions & Answers
9 available 9 • View allWhat happens when you fail to pay bank loan instalments?
10
Q: What happens if I failed to pay 3 instalments from my personal loan from the bank?

Jan 24, 2018
13683
Penalty for a bounced cheque after defaulting on loan instalments 
6
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
12316
Avoiding civil proceedings by the bank upon criminal case closure
9
Q: 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.

Feb 21, 2018
6770
Is it possible to be blacklisted after paying the fine in a bank loan case
3
Q: My name is Asanka.
I have a problem with ADIB because I have a personal Loan of AED 28500.
I kept paying and now the outstanding balance is AED 5900, but last month I tried to go on emergency vacation. They stopped me at the airport and took me to Naif Police Station and made a case.
Next day, they put me in court and ADIB made a cheque case of AED 34000. So, the court gave me a fine of AED 2020.
I need to know if I’m blacklisted in Dubai and if that outstanding amount of AED 5900 I still need to pay.
Please help me.
Thanks.
Asanka

May 10, 2018
7751
Clearing a bounced cheque for a loan after paying the fine
0
Q: Good day!
Please reply ASAP.
Actually, I have cheque bounce case recently up to AED 51000 from Duniya Finance but I’m out of the UAE for 1 year due to my family mishap. Now, I want to visit the UAE again to search for a job!
What is the procedure now? Will they arrest me or I have to pay a fine? If I pay the fine, will I be free of the claimed amount or I have to pay the amount to the bank after paying the fine?

Aug 22, 2018
2391
Possibility of clearing a case after payment of fine
3
Q: Hi Hari,
I need to know if by paying fine on the prosecution, the case will be lifted and I can travel without being arrested.

Sep 12, 2018
1495
Expected legal actions for defaulting on a bank mortgage
1
Q: I have a property mortgage loan that I have paid for its instalments over more than 3 years without any failure. However, due to my financial situation, I will not be able to pay any more, because my income turned to zero.
I need to know the legal actions they can take against me.

Jun 26, 2019
1027
Consequences of defaulting on a small amount of a bank loan
3
Q: Hi,
Please advise me on the below issues!
I have taken a loan from a bank (AED 70,000) and suddenly I couldn't pay my loan due because I have some salary issues in my company.
They have deposited my security check and I have paid a fine amount of AED 5020 at the police station and I also have the slip which I received from them for payment of the fine.
After a few months, I joined a new company. The collection agency called me and advised me to pay the loan amount which is pending. I started paying my loan amount, but suddenly, I faced some financial issues so I couldn't pay the 2-month loan amount.
They sent me an email to pay the total outstanding amount of AED 19,000.
Will the collection agency file a civil case for that small amount?
I will clear my pending loan but I need some time. If they file a civil case, what will be the problem?
Can I travel outside the UAE?
Please advise me!

Feb 25, 2020
1377
How to settle a civil case with the bank upon defaulting on a loan?
8
Q: Good Morning Madam,
My name is R. A. I took a loan in 2016 for AED 240000 from a bank and in 2017 I lost my job. I paid around AED 100000 and they filed a criminal case in 2019.
I paid the penalty of 20000. Now they filed a civil case for a total of AED 168421.72. I am in India and I couldn't attend mediation because of Flight Service Ban.
Today is the first hearing session. Please advise what I should do.

Aug 9, 2021
952
Legal blog
2 available 2 • View allThe Consequences of Job Loss and Defaulting on Financial Liabilities 26
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
18946
How Do You Ask a Lawyer? 11
I believe that there is a similarity between medicine and law, and just as there is a way to ask a question to a doctor to get the most accurate and correct answers from him, which ultimately helps you receive the correct diagnosis, and therefore the correct treatment, there is a way to ask a lawyer.
Jun 12, 2023
1193
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
47948
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
148521

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