Questions & Answers
A debtor fails many times to pay the loan, what to do?
Hi,
It is a bit complicated situation. I gave a loan of AED100.000 to a friend through a bank transfer to run a restaurant business.
He told me that he will own the business soon and will renew the license and other staff insurances and visas. He was working as an employee there but he has an arrangement with a local owner to make him a partner.
He agreed on paper to all the terms and conditions which also state that if he is unable to pay the monthly agreed amount, he has to return the full amount.
I only have recovered 34.000 over the last 8 months. I have valid cheques of AED45,000 which I have not presented yet as I am trying to recover the unsecured amount of AED55,000.
He is not giving a balanced cheque. Recently I put pressure on him. He signed on a white paper along with his Emirates ID number with the date and time to refund me through 10.000 weekly but he has failed to do so. What options do I have?
Hello,
As per your query, as the loan agreement is not registered in the notary public, so you have to proceed to recover the amount with the agreement which has been signed by both parties.
Firstly, you should send a legal notice and then shall try to settle out of court or proceed to file a civil case against him.
You can also approach a debt collection agent or lawyer and also you can present the cheque in the bank and proceed with a criminal case.
Please contact us via phone or email for further information.
