Questions & Answers
Am I still liable to pay a loan to a new bank after the old bank was taken over?
Dear Sir/Madam,
I lost my job in 2018, and in 2019, the bank opened a criminal case against me for defaulting on my loan. I attended the hearing with a judge and was told to pay a fine of AED 7,000, which I did.
The bank was then taken over by another bank in 2020/2021.
In late 2022, the new bank that took over is calling me to clear my loan, but I never signed anything with them, and my case was before the takeover.
Am I still entitled to pay the new bank?
Dear Questioner,
You paid a fine for the criminal case. The bank has the right to demand payment for the loan in a civil case.
Yes, the new bank takes on all the rights and obligations of the old bank to demand repayment and can put a travel ban on you unless the loan is cleared (under the provision of assignment in the loan document you signed).
Dear Rupina,
The bank still had the right to file a civil case for you to settle the liabilities, when the other bank took over, they took over the liabilities that are due to the bank as well.
Therefore the current bank has the right to claim the settlement from you.
Thank you
