Does the bank have the right to file a civil case if I fail to pay instalments after raising them?

Questions & Answers

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Settlement of credit card debts after a police case

Q: Ma’am My name is Mohammed A. Q. For the non-payment of a credit card, the bank called me and said they have a case against me and told me that they put on me a travel ban also. My police case is pending in Jabal Ali and my visa renewal is due in next month. Will it affect my visa renewal?

Mar 4, 2019

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Settlement of loans and credit cards cases with the bank

Q: I unintentionally left the UAE in 2016 due a to family emergency with an unpaid credit card and a few loans. Since I have got confirmed by a Dubai based colleague that I have a police case already for bounced cheques cases. How do I go about the settlement from outside the UAE? I have heard of the fines imposed as well as bounced cheque criminal case has been demoted to a minor misdemeanour in Dubai. Involved banks are ADCB (loan of 120k), FGB (credit card - 70k), ENBD (credit card - 20k), HSBC (credit card - 13k) and CITIBANK (loan of 31k). Thank you for your help. Please advise on the action that I can take to settle my issue without going to Dubai, UAE.

Jan 2, 2019

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Refusing to make a settlement for credit card due to outstanding loan

Q: Hello. I have a credit card in a bank, at first they are asking me to show proof on why I wasn't able to pay my dues, so from my end, I submitted all papers. Now, they asked me to pay the minimum, and when I asked when they will send me a settlement offer, they are telling me they cannot provide because I have a personal loan. For this personal loan, they filed a case against me 5 months ago and I went to prosecution and paid the fees. So, the settlement offer for my credit card is not possible because of my loan also. But before, they have asked me for proof to show and now they are refusing me. Is this correct or it depends on the bank's discretion?

Aug 26, 2019

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How to know if I have a travel ban before traveling in case of credit card dues?

Q: I have a valid job visa in the UAE but I need to go to India for a few days on leave. My credit card repayment has some dues. Is there any travel ban for me to travel?

Feb 14, 2023

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How long will the jail term be when the bank files a case against me?

Q: My bank managed to get a civil case filed against me without my knowledge and an execution order is raised for the judgment to pay AED 140000. How long could the jail term be?

Feb 15, 2023

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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

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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

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Laws & Regulations

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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

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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

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Premium

Khaled Ebid

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What can I do if I cleared the travel ban at the police station but it still cannot get a clearance certificate?

I had a case at Al Barsha Police Station, Dubai, for one year. On 22 April, the court announced a verdict and imposed a fine of AED 5000, which I paid on the very next day and got the certificate from DPP, which I took to the Al Barsha Police station and submitted there. The police officer told me that they have removed the travel ban, and the records will be updated in other emirates within 24 hours. It's been more than 48 hours now since I applied for a clearance certificate on the MOI app, and it has turned into status "review with the concerned party." I don't have any other cases, only this case, for which I paid the penalty already. Seeking expert advice, please.

May 16, 2025

Why was my first UAE employment visa rejected if there’s no travel history?

Hi, My employment visa was rejected without any reason stated. I contacted MOHRE, and they said it was rejected by ICP Abu Dhabi. I have never been to the UAE or any other country. This is my first visa application. I am from Pakistan, and I heard there is a shadow ban on some cities in Pakistan. I contacted ICP, but they said there is no ban on any nationality.

May 16, 2025

Am I allowed to travel to my home country during the probationary period?

Hello, Is it okay if I travel to my home country during the probationary period? I have 7 days pending (days off and public holidays). My manager agreed to give all 7 days together, and I am planning to go see my family. Do I need to get approval for traveling?

May 16, 2025

Can the collection agencies pursue a legal action against me in my country for unpaid debts in the UAE?

Dear Sir One of my friends took a loan and credit cards from various banks and ran away to Pakistan as he lost his job. Can anyone chase him in Pakistan? Actually, he was a victim of fraud, and the person who did this is in jail, and the other ran to Pakistan. My friend made civil cases and won both. One is in jail for the first case, and the other ran to Pakistan. That's why he defaulted on payment.

May 16, 2025

What is the procedure to stay in the UAE if the medical test showed unfit due to HIV?

Seeking legal advice. I was working in the UAE for almost 12 years, and I am on a visa renewal. However, my medical is unfit due to HIV. My employer is willing to help me if there is any way to process the renewal of my visa. What can be the procedure for me to be able to stay and renew my visa and be able to seek medical treatment in the UAE?

May 15, 2025