Q: Hi, I took a loan from a UAE Bank for AED 450,000, I now have AED 230,000 of the loan outstanding. Due to delay in my salary, I missed 3 instalments and the bank deposited my security cheque for 600,000 AED and it bounced. My bank filed a case with the police 10 days ago. I went to issue a visa for my daughter and was informed that I can not complete the application as I have a police case for bounced cheque 10 days ago against me in Qusais Police Station. I am trying to get refinance from my bank, assuming the refinance doesn't go ahead, kindly advise: 1- When would it be likely to get called to the police station (how many days typically after a case is filed). 2- When called the first time, am I likely to spend time jailed in a police station or can I walk out the same day if I surrender my passport. 3- Will a fine be imposed? 4- If this goes to court, what is the likely sentence? 5- Is my liability to the bank AED 600,000 or 230,000 AED? I intend to pay in full over 2 years

Q: Hi Mam, I need clarification. I had a credit card loan which I was remitting though not on a regular basis due to salary delay. However, while I was travelling on emergency leave to attend my grandma's funeral last year, I was denied of travelling saying that there is a bounced cheque by the bank and thereafter was imprisoned for a day. The very next day I was released after paying an amount of AED 4950/- and the officer said that I need not have to pay anything further. The bounced cheque was for 60000/- and my total dues at that time were only about 15000/-. Now after almost a year, I received some calls from their collection department and they have sent a mail saying that my dues are now about 39,000/- and cautioned me not to travel. As I am planning to travel during the 1st week of May '19, I would like to know your valuable advice as to whether there will be a ban on me again. Appreciate & eagerly awaiting your valuable advice. Thank you, G. N.

Q: Hello, I am 3 months behind on my bank loan with FGB. I have told them that I can pay up 2 months on THURSDAY 2nd Nov 2017. The loan is in my business name and they are threatening to deposit the security cheque of 330,000 Dhs for the outstanding full balance of 250,000 Dhs. Can they do that? Is that even legal?

Q: I have a bank loan and credit card loan with 3 banks. As I am not receiving my salary of 4 months, what I have to do? From the company side, I can't do anything. They will pay later but not immediately. I will wait till that. What I have to do for loan repayment and credit card payments? If they go legal, what I have to do? If I didn't pay, is it possible to waive it off?

Q: Hi I am from India and I left the UAE in 2020 with a personal loan outstanding of 300k due to my job issues, I am in the UK currently for the past 2 years. The bank has received my end-of-service benefits and holds them. Now they are threatening me via a collection agency from India to go against my parents who have nothing to do with this loan. They are calling them by phone and messaging to threaten me from time to time. I have complained to my bank about this bullying from this collection agency but no action is taken from the bank. I am currently paying the minimum amount to the bank in the UAE towards my personal loan. I like to know what action can the UAE bank take against me in the UK and in India against me and my parents. What is the legal right the collection agency in India has to act against me and my parents? If I can't pay my personal loan due to my financial situation, what will the consequences be? Kindly advise.

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.

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.

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 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.

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.