Questions & Answers
How can I recover a loan from a friend who refuses to pay and threatens to sue me?
So my friend asked me to give him a loan of AED 17,000 and he said he would give me interest. I was not aware at the time that interest is not allowed on private loans between individuals.
For 5 years he said he would pay me back but he hasn't till now. I only asked him to simply repay me the principal amount and that I don't need any interest at this point.
He kept stalling and finally, I was fed up with it and informed him Ill be filing a case. Now he is angry and he threatened me by saying that he will sue me back since interest on personal loans is not allowed.
It's like he knew about all this from the start and he coerced me into this. I think his plan all along was to take the loan from me, offer me interest knowing it's not allowed, and then use that excuse not to repay it.
He runs several businesses and surely has an idea of corporate laws but I'm just an ignorant employee. Please tell me what I can do in this situation. Will I be able to recover the amount?
Dear Client,
Thanks for your question, I hope you are doing well. I will definitely assist you in this matter.
In the UAE, charging interest on private loans between individuals is not allowed, and such agreements are considered illegal.
However, you can still seek the repayment of the principal amount, which is legally enforceable.
If your friend refuses to repay the principal amount, you can consider taking legal action to recover it.
Consult with us to understand the best course of action and the legal process for recovering the loan without interest.
Keep any evidence of the loan agreement and payments made, as it may be helpful in your case.
For any further legal assistance, you can WhatsApp us. We have an extensive team of knowledgeable and experienced lawyers to provide the legal assistance you need.
We will definitely be happy to help you.
Thanks & Regards
ABDUL WAHIED
Hi
This is Nada,
Did you sign any agreement with him?
Normally, you have the right to ask him to pay the money back, but you need to confirm that you give him money as a loan.
Also, for him to say you were taking interest will not change the fact that he should return your money back
If you require any legal support, please contact me on phone.
Regards,
Nada
Dear questioner,
You should be able to collect your principal amount of AED 17000 without any issues.
Only the interest condition will be nullified, as for the principal amount, it should be secure if you have proof of it.
For more information, please contact us on WhatsApp.
Even if he threatens you, you can still recover the amount without interest.
You are required to send him a formal letter outlining all the amounts you owe him and mention that you do not need any interest on the amount even though he offered earlier.
Give him a short time period for repayment, after the mentioned time period you can escalate the matter to the court.
Dear Inquirer,
Hope you are doing well!
Kindly note that you can start your claim with a legal notice and then go to the court in case of no reaction, however, you can provide us with the full documents to be reviewed and then we can set out the plan.
If you have any other queries you can reach us through Email or via Mobile.
I would appreciate it if you could leave your review and rate our advice if it helps you, thank you!
Best Regards,
MennaTullah
