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.

Q: Dear Sir/Madam, I want to know as per the new cheque bounce law, what is the time limit to file execution, 3 years or 5 years? I have bounced a cheque for 17000 in April 2017 and I filed a criminal case and he paid the fine. Now, after 5 years, can I open execution on him? Regards

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?

Q: I filed a case (cheque bounce) and the judgment of the case came in my favor. But the opposing party did not come to the court. After that, he is underground for the last 2 years. What is the solution for this case?

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?

Q: Can a UAE bank take legal action on a 15+ years personal default? They haven't applied any legal action so far and I thought there was no default. But after a period of 15+ years, the collection agency contacted me for payment.

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.

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 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.

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.

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.