Q: Dear Madam, I took a personal loan from a bank for AED162,000/- and paid AED 139,000/-. Now, the balance is 84,000/- (with interest). I received information that the bank has filed a case for AED 219,000/-. I did not pay the monthly EMI of AED 4,538/- for more than 6 months due to job loss. How is the bank filing a case for 219,000/- instead of the actual amount? What is the procedure to reply to the bank against this case? Please advise. Thanks and regards, S.

Q: Hi, I have a credit card of 30k limit. I used it fully and paid them back almost 40k extra. I have receipts for 65000 or more. They presented the cheque in police and filed a case against me but I paid them more than their actual amount. So now what type of punishment they can give me? The cheque amount was 100k. I want to ask you, their limit was 30k but they presented the cheque with 100k. Isn't it illegal? And what is the procedure to get rid of this tension? I shall be thankful to you Best regards

Q: Hi, I had taken a personal loan from a bank (it's now under a different name) back in 2018 for AED 260,000. Then I left the country and continued to pay for a while, but then I couldn't and now in Dec 2020, they have filed a civil case. I would like to know if I hire a lawyer for my case to clear, would that help to solve the issue or should I try contacting the bank to negotiate? Not sure if the bank will negotiate to close the outstanding as I was told by a friend that banks have insurance on the debt that is lent. And if there is a civil case, they can claim insurance for the lost money rather than negotiating especially after a civil case is registered. Is that true? I want to clear my name at the earliest but I don't have that much money (now AED 293000 with interest and late fee). In a civil case, what are the proceedings if I hire a lawyer? And does it help to get the amount of payment lowered? If so, how much lower can the court order to close the case and how long would it take? Thanks.

The management of individual financial affairs is crucial and all the actions must be weighed down while committing to any financial liability. Whether it's job loss that may have lead to financial failure or the opposite, one must be aware of the personal liability which will not diminish by paying fines for cheque bounce cases. There are two major types of liabilities, criminal liability and civil liability. Each has its own significance, hence, must be dealt with accordingly.

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.

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 law On Evidence in Civil and Commercial Transactions (Law of Evidence) govern evidence in civil and commercial disputes in the UAE.