Q: I had some loans from banks in 2015. I checked and there is no criminal case or travel ban. I plan to re-enter Dubai but I fear that the banks put again another case against me… A: The limitation period for recovery of monetary obligations did not change. It remains 10 years since the obligation…

Hello, There were a lot of changes in Commercial Transactions and Civil Transactions laws but the limitation period for recovery of monetary obligations did not change. It remains 10 years since the obligation became due. Hence, it is better you ensure to settle your obligations with banks before coming.

How to know if you have a case or travel ban for an old bank debt and when does it drop?

Questions & Answers

Questions & Answers

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How to settle a civil case and a judgement for credit card and loan?

Q: I currently have a civil case, and a judgment was passed in my absence where the court ruled that I should pay the full amount. With the new laws passed regarding bounced cheques, I paid the fine for this case but the civil case and judgment were passed already. The amount for both the credit card and loan is a total of AED 324,000. I would like to find out how I can get the judgment removed and find a way forward in closing the civil case as I have a travel ban and can’t get employment.

Feb 14, 2022

2185

A civil case for a bank loan was filed fifteen years ago. When does it expire?

Q: Hi, My husband had a car loan in let's say 2008. He lost his job and couldn't pay it which lead to a criminal case. He paid bail and got out of the country. Of course, the civil case followed. The case is still active. What would happen if he would return to UAE? What will be the procedure at the airport? Is there an option for him not to be jailed? The intention is to pay it back and get a job in the UAE. Can the fees be reduced? What about the 15 years that the civil case should expire after that?

Mar 3, 2023

384

How to remove a civil case by the bank and come back to the UAE?

Q: I have a civil case of AED 330,000/ with a bank for 5 years, and I am outside the country. Is there any chance that I can enter the UAE without facing jail terms? Also, I would like to know, for how many years does the civil case remain?

Jun 13, 2023

727

Am I still liable to pay a loan to a new bank after the old bank was taken over?

Q: Dear Sir/Madam, I lost my job in 2018, and in 2019, the bank opened a criminal case against me for defaulting on my loan. I attended the hearing with a judge and was told to pay a fine of AED 7,000, which I did. The bank was then taken over by another bank in 2020/2021. In late 2022, the new bank that took over is calling me to clear my loan, but I never signed anything with them, and my case was before the takeover. Am I still entitled to pay the new bank?

Jul 7, 2023

211

How to come back to the UAE if I left with a credit card debt that accrued through time?

Q: In 2010, I was permanently banned from the UAE. At that time, I had a credit card from a bank with a limit of AED 5,000. Due to harsh circumstances, I was unable to inform the bank before being deported by the authorities. I did inform the bank afterward but, due to inflation and my financial situation, I was unable to repay the debt. It has now been 14 years, and the bank is still pursuing me for the outstanding credit card balance, including the accrued interest, which now amounts to approximately AED 143,000. I would like to inquire if I am still liable to pay this amount after all these years, including the interest. I have heard that banks typically do not follow up on such small amounts (AED 5,000) for an extended period. Could you please provide assistance and clarification on this matter?

May 14, 2024

484

I had a case for an unpaid bank loan against me 20 years ago. Is it time barred now?

Q: I've been detained and released after 4 days in Abu Dhabi police station for a bank loan which I haven't paid for almost 20 years. I don't have any work and I have some health issues as well. They said I have a clearance already. Does it mean that the case that the bank has filed against me is cleared?

Nov 4, 2024

183

Can a UAE bank take legal action on a personal loan default that is over 15 years old?

Q: Dear Lawyers, Can a UAE bank take legal action on a personal loan default that is over 15 years old? They haven’t taken any legal action so far, so I thought there was no default. But after more than 15 years, a collection agency is now contacting me for payment.

Nov 12, 2024

404

Legal blog

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Bounced Cheques in the UAE: What You Need to Know in 2024

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.

Oct 15, 2024

291

222171

Failing to Honour Bounced Cheques in Loans and Other 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.

Jan 15, 2020

7050

Laws & Regulations

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Federal Law No. (18) of 1993 Issuing the Commercial Transactions Law

This Law applies to merchants, as well as to all acts of commerce carried out in the UAE by any person even though he be not a trader. Commercial matters regarding which specific Federal laws are issued shall be subject to the provisions of such laws, and to the provisions hereof which do not contradict with said laws.

Sep 7, 1993

33030

Federal Law No. (5) of 1985 On the Civil Transactions Law of the United Arab Emirates

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

148439

Federal Decree Law No. (14) of 2020 Amending Certain Provisions of the Federal Law No. (18) of 1993 Concerning the Commercial Transactions Law

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.

Sep 27, 2020

3538

Alona Sadovets

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When does a travel ban come into effect once the bank files an execution case?

Dear Lawyer, When does a travel ban come into effect once the bank files an execution case? I am the owner of a small company and have had a business loan since 2018. However, due to difficult circumstances, I have been unable to pay the installments since July 2022. The bank has informed me that they have filed an execution case against me and placed a travel ban on 27.12.2022. On the Dubai Courts website, the case status is currently listed as "Reserved." I have checked the Dubai Police website and do not see any indication of a travel ban. I am in communication with the bank and requesting their assistance in resolving the situation, as I intend to repay the loan but I need some grace from their end. In the meantime, I would like to know if the travel ban is in effect upon filing an execution case by the bank and if I am able to renew my visa and my family's visas in this situation. Your guidance would be greatly appreciated, as I am in a state of distress and have my wife and children here.

Jan 13, 2023

1322

Can the bank file a civil case after I paid the fine in bounced cheque criminal case?

Hi Lawyer, I had a criminal financial case for a cheque return from a bank credit card for 55,000 in 2020 and paid AED 5,000 fine penalty from the court to remove the case. Now the bank is contacting me regularly asking to settle an amount of AED 400,000. Can they put a case for the entire amount? or the amount which I really owe them?

Oct 5, 2022

470

Confirming that the warehouse is vacated before the renewal date

Dear questioner, We rented a warehouse in Al Quoz and vacated it at the end of June. Now the landlord is saying that we did not vacate and therefore the contract is renewed and is requesting payment. We have rejected his claims. The contract does not seem to be registered with RERA EJARI. Where do we stand?

Jul 7, 2022

432

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