Q: Last October 2017, my security cheque for my personal loan bounced because I was two months delayed. When I found out that my cheque bounced, I coordinated with the bank, and they advised me that I need to submit a new cheque and new salary transfer certificate to them and they won't file a case. I submitted the required documents and paid some amount as well. Last February 21, 2018, I was planning to go to Georgia for vacation and I was arrested due to a case filed by the bank. I was surprised because I knew that they will not file a case and no one from the bank informed me that I have a case. The case was filed last November 12, 2017, and I even had communication with the bank for loan re-structuring and during that time they didn't even tell me that I have a case. I paid AED 10k fine for the case. I was really disappointed by the bank gesture. Why would I go to Georgia if I know that I have a case? I almost spent 5 days in jail. Please let me know your advice. Thank you very much.

Q: Hi. I had a bounced cheque case with my ex-landlord which I recently settled. He filed a case against me. My brother paid the amount and their Local UAE National will be doing some paperwork in ON TIME government service office. Then later, he was advised to go to Court to take the NOC and pay the fine. Once the NOC is taken and fine paid, do we need to take this paper to the Police Station or Immigration to clear my name so they won't stop me at the Airport when I enter Dubai again, or it will be done automatically? If it will be done automatically, then how much time it takes?

Q: I have cleared my loan with a bank and was issued a no-liability letter to that effect. I took the letter to my HR to complete the salary transfer letter to my new bank. However, the liability letter was rejected by HR because it did not have my current account number on it. After going back to the bank I was told that I would have to close my credit card to have the bank account number appear on the letter. I have now closed my credit card, however, the bank has now informed me that they cannot reissue the liability letter for that account. I am now at the point where payroll amendments close next week, with no liability letter and an HR standing firm. This means default on my first payment with the new bank and no pay. What are my options?

Q: My brother was detained last week in Sharjah Airport when he was traveling from Saudi Arabia stating there is a cheque bounce case. Further, looking into details we found that there is an open case in his name raised by a bank that issued a credit card to my brother when he was working in Abu Dhabi back in 2018. There was a credit card payment due when he moved back to his home country from Abu Dhabi in 2018. Later, he coordinated with collection people and settled the matter by paying dues. There is an email communication evidence in 2019 from bank officers that all dues are paid and settled and they will issue a clearance certificate which we never got. The settlement has happened with the bank but the police case was never closed as it seems. Now my brother is in jail for no fault. He is taken to Abu Dhabi and now planning to take him to Dubai for the court appearance. What should we do with this situation? My brother is facing all this trouble for no reason.

Q: I purchased a new car which is financed through the bank. Can I go on tourism to Saudi with my car?

Q: Hi, I had a loan from a bank and I came back from Dubai in 2015. Now in 2023, I have cleared the entire amount taken from the bank and have a payment receipt as well. There is no case filed according to my knowledge as I was only getting collection calls all this while. Now, I want to travel to Dubai on a visit. Do I need to have any clearance from the bank or immigration?

Q: Hi, Good Day! I issued a personal cheque valued at 55k AED to a vendor five months ago. During this time, I paid half of the amount, but currently, I have no job or any source of income to cover the remaining balance. Despite this, the vendor insisted on depositing the cheque, which they did. Now, they claim it was rejected due to an unauthorized signature, although I believe everything was done correctly. What can I do to resolve this if they decide to take legal action against me? I currently don't have the funds to pay, and I've informed them that I need more time to settle the matter. Kindly advise!

Q: Hi, I had an unpaid loan in the UAE, and because of that, I had a travel ban. The loan was settled two weeks ago. I have now received a new job offer in the UAE. There is a delay from the bank in providing the clearance letter. Can I enter the UAE with an email from the bank stating that the loan has been closed?

In the UAE, cheque bounce is a very frequent problem faced by people during their span in the country. It is covered under the purview of Commercial Transactions Law, and legal implications/penalties can be financially severe and daunting for more “serious” offenses. Bounced cheque issues may arise in a variety of commercial transactions, including but not limited to, companies’ exchanges, bank loans, property rents or purchases, and individual transactions.

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.

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.