Q: Hi Lawyers, I have outstanding dues on my personal loan and the bank filed a case on that. I am trying to get a settlement through the debt collection agency. They asked me to sign a financial letter for that, along with it, they need all my documents. Is this mandatory? Is there any issue in signing the financial letter? Is there any issue if I could not make the payment on the mentioned date? Please advise.

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.

Q: Hello. I owe a bank here in the UAE a credit card debt amount. Due to circumstances (losing my main source of income, having other financial burdens, including monthly medical bills for cancer treatment & medications etc., and  I don't have health insurance), I haven't been able to pay back on time since over a year ago. Hence, that amount has since accumulated from a small figure to a relatively big one (currently at around AED 70,000). I have received an email recently from some "credit collection" agency, saying that if I don't pay back next month, they'll put a travel ban on me and file a civil case. However, it is impossible for me to pay this amount at this time. I am currently making "some" income (not as close as I used to before, but still), and have the intention to resolve this issue. Is there any way to reach a settlement with the bank (maybe to waive part of the amount or the interest), break down the monthly installments to smaller amounts, or any other solution you would suggest? Many thanks.

Q: Hi, I would like to ask for advice on what is the best thing to do in a settlement issue with a financial institution. I had a police case and paid a fine in Dubai Court. Now the third party is stressing my mind sending emails to our company. I arranged money for settlement but I will not pay the whole amount that they are asking me as it is too much. Please help me to finish this issue so I can work peacefully. Thank you.

Q: Hi, I have a card balance of AED 6k. Third-party collectors messaged me on behalf of the bank that they would initiate an execution case against me and forward it to the lawyers. They even gave me the case number. I checked in Estafser and the Dubai Police App but the case number they gave me shows not valid. How should I know if there is an active case against me? And from whom should I receive the message legally? Appreciate your advice

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.

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.