Q: Hi Alona, I had some loans from banks in 2015 which amounted to 400k from 3 banks. Now with the 2022 rule, I checked and there is no criminal case or travel ban against me which is a relief. I plan to re-enter Dubai but I fear that the banks put again another case against me for these old debts based on the new commercial/civil law. Is the debt finished? I don't want to get stuck in Dubai for old loans. Kindly advise on my possible course of action going forward.

Q: What is the limitation period that a bank has to claim bank loan default by a company? A company loaned money from the bank and defaulted in the payment of return. How long does a bank have to claim the amount in the UAE? In the civil code, it's 15 years and in the commercial code, it's 10 years. What would apply on behalf of the bank? Kindly revert. Thank you

Q: Sir, My friend used a credit card, purchased with 28,000 dirhams, and went to India without paying for it. This was in 2011. What are the consequences now if he wants to come back to the UAE? Kindly advise.

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?

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.

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.

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.

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.