Q: Hello, I am 3 months behind on my bank loan with FGB. I have told them that I can pay up 2 months on THURSDAY 2nd Nov 2017. The loan is in my business name and they are threatening to deposit the security cheque of 330,000 Dhs for the outstanding full balance of 250,000 Dhs. Can they do that? Is that even legal?

Q: I was jailed for 4 months for not being able to pay a loan from a Dubai bank since I've lost my job in 2011. After my release, I tried looking for a job but was unsuccessful, so I went back to my home country when my visa expired but still the bank is sending emails and threatening me and wants to collect money from me. Now that I am back here in Dubai, they threatened to file a ban against me and told me that I cannot get my visa renewed if I will not pay them. Can the bank do such THING? I already have accepted the punishment of serving jail time since during that time I didn't have a JOB and was totally broke. What can I do so that they will stop harassing me? What does the law say if someone had served the sentence for a bouncing check case? Thanks and hoping to be enlightened. 

Q: I have a house in Dubai worth 6 million (mortgaged 3.8 million). I am an investor and have taken a business loan of 2 million. I want to sell the house but the real estate market is slow. Business is slow. If I am not able to pay the business loan EMI on time, what will happen? Will the bank give me time to sell the house and regularise the EMI payments?

س: السلام عليكم أستاذي الفاضل، حصلت على قرض كريدت كارد من بنك في دبي، وبسبب الظروف الراهنة تواصلت مع البنك عند طريق الإيميل لتأجيل الدفعات ولكن البنك رفض وهددوني بأنهم سوف يرفعون قضية لدى الشرطة إذا لم أسدد الأقساط. ما الإجراءات؟ هل تُدفَع غرامة وأُعفَى من المبلغ؟ وهل أستطيع السفر إلى بلدي بعد دفع الغرامة وما العقوبة والنتيجة؟ وشكرًا لكم ودمتم سالمين!

Q: Hi Sir, I have a personal loan with a UAE bank, the amount was AED 240k. I paid 6 months, the remaining amount is 200k. My security cheque amount is AED 288k. Unfortunately, I am not getting a salary from my company so I can't pay the EMI. Currently, 2 months are overdue, the collection department people started harassing me. I sent all the relevant documents to the bank related to the salary issues... etc., but no help from them. Can I know what will be the penalty & jail term for it? Still, I am staying here in the UAE.

Q: I have a bank loan and credit card loan with 3 banks. As I am not receiving my salary of 4 months, what I have to do? From the company side, I can't do anything. They will pay later but not immediately. I will wait till that. What I have to do for loan repayment and credit card payments? If they go legal, what I have to do? If I didn't pay, is it possible to waive it off?

Q: Dear Sir/Madam, I have applied for bail for my husband on the Public Prosecution website. He was sentenced to 6 months in prison for a criminal case, fined, and deported. He has now served 7 months in prison. He has a pending civil case, and a lawyer advised me that I can apply for bail, so I did. The application states that a decision will be made within 5 days. Does this mean I will receive a decision on the 5th day, or any day within 5 days? What are the chances of him being granted bail? Thank you!

Q: Dear Sir/Madam, My cousin has been arrested in Ajman for an unpaid debt in a civil case. What is the maximum sentence that can be imposed on him? Since he's not an Emirati, can he travel after the sentence?

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.

يلعب الشيك دوراً مهماً في الحياة اليومية سواء في ميدان المعاملات التجارية أو في ميدان المعلامات المدنية باعتباره أداة وفاء والتزام تحل محل النقود في التعامل بين الافراد. ونظراً لهذه الأهمية فقد أصبح أكثر الأوراق التجارية انتشاراً وتداولاً بين الناس، على الرغم من حداثته نوعاً ما. فالشيك لم يبق كما كان في بداية عهده أداة لسحب الودائع المصرفية لحساب الساحب ذاته، بل أصبح أداة وفاء تحل محل النقود سواء على النطاق الداخلي بالنسبة للمعاملات التي يقوم بها الأفراد داخل الدولة فحسب وزادت أهميته.

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 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.

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.