Q: Last October 2017, my security cheque for my personal loan bounced because I was two months delayed. When I found out that my cheque bounced, I coordinated with the bank, and they advised me that I need to submit a new cheque and new salary transfer certificate to them and they won't file a case. I submitted the required documents and paid some amount as well. Last February 21, 2018, I was planning to go to Georgia for vacation and I was arrested due to a case filed by the bank. I was surprised because I knew that they will not file a case and no one from the bank informed me that I have a case. The case was filed last November 12, 2017, and I even had communication with the bank for loan re-structuring and during that time they didn't even tell me that I have a case. I paid AED 10k fine for the case. I was really disappointed by the bank gesture. Why would I go to Georgia if I know that I have a case? I almost spent 5 days in jail. Please let me know your advice. Thank you very much.

Q: I have cleared my loan with a bank and was issued a no-liability letter to that effect. I took the letter to my HR to complete the salary transfer letter to my new bank. However, the liability letter was rejected by HR because it did not have my current account number on it. After going back to the bank I was told that I would have to close my credit card to have the bank account number appear on the letter. I have now closed my credit card, however, the bank has now informed me that they cannot reissue the liability letter for that account. I am now at the point where payroll amendments close next week, with no liability letter and an HR standing firm. This means default on my first payment with the new bank and no pay. What are my options?

Q: Hello, I need help with a legal matter. I have a personal/car loan with the bank and I missed 2 payments, July-August 2020 EMIs. The bank informed me they would be filing a case but I resumed the payments of both pending EMIs by paying them. Since September 2020, I have no debts, since I am paying my loan instalments regularly. On April, 27 this year I came to know I have a bounced security cheque which came with a travel ban. It is unfair as I never had any debts in more than 7 months. I provided the bank with all the necessary documents and I signed the new security deposit cheque 1 week ago. They are supposed to provide a clearance letter for the police to lift the travel ban but nothing is happening in more than 1 week and I am losing my job. Please advise me what is the solution in my case and how long does it take for the bank to cancel the bounced cheque and provide the clearance letter. Thank you in advance.

Q: Hi, I had a loan from a bank and I came back from Dubai in 2015. Now in 2023, I have cleared the entire amount taken from the bank and have a payment receipt as well. There is no case filed according to my knowledge as I was only getting collection calls all this while. Now, I want to travel to Dubai on a visit. Do I need to have any clearance from the bank or immigration?

Q: Hello I lost my passport during shifting and I reported a lost certificate. Then after 5 to 6 days, I found my passport. After a few days, I was going to my country and immigration stopped me. They said first you have to clear your case. So then, I cleared my case from the police station and they said you are clear now. But in my Dubai police app, it's still pending. Can I travel now?

Q: I have an ongoing cheque execution case that has been active for a year. Finally, after lengthy negotiations, the bank is willing to waive the interest and late payment fees and close the loan in a single settlement after issuing an offer letter. Should I trust them and proceed, or should I inform the court about settling the matter outside the court? I am concerned that they might refuse to withdraw the case or demand additional payments such as legal fees after I make the final payment.  Please advise.

Q: How can I find someone who was detained at Dubai Airport and has a civil case due to overdue loans?

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 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.