Questions & Answers
The consequences of missing loan installments due to salary delays
Dear Sir,
I have credit cards and loan from 2 banks, almost AED 85k.
Suddenly, my company is not able to pay the salaries & the last few months we are getting the salary after 50 days.
I am managing my credit card by minimum payments but wouldn't be able to make payment of AED 59k loan now (paid 8 instalments).
Now, I am receiving calls from the banks. The banks where I took loans have my cheques.
What will happen now if the banks present my cheques & bounced?
It's very difficult for me to settle.
Dear Questioner,
I'm utterly sorry for the situation you are currently facing.
Indeed, it's a predicament which needs an immediate action from your side.
Based on the given info, I do recommend attempting to negotiate with the bank so as to reach a new payment plan in accordance with the dates of which your salary is being transferred.
You can rely, in that regard, on the fact that the company is the one in default of transferring the salary on the date, which means that you have nothing to do with it in any way whatsoever. This is on one hand.
On the other hand, you shall discuss that matter with your employer, and ask him to transfer the salary within a specific range (which is your right with no room for debate), OR ELSE, you shall file an immediate labour complaint.
Also, let me draw your attention to a vital point, which is that your employer's license should be blocked for not transferring the salaries on their due date (or within the allowed time-period to be more specific).
Hence, reporting the same via a labour complaint should be a leverage for you.
Hope that the whole situation will end up with an outcome satisfactory to you.
For any further assistance, kindly contact me.
Kind regards,
Sherif M. ElKhatib
+971 505050 835
