Q: I agreed with the collection agency regarding my unpaid credit card dues and they sent an email to me stating that as agreed, in the telephonic conversation, I can pay the amount as installments and close the cards. Is it valid to accept it as email from collection agent or I need to get the settlement agreement from bank on their letter head? Kindly advise.

Q: I have credit cards from a bank in the UAE and the limit for both cards is 7500 but the outstanding is 9800. I asked for a settlement of AED 4000 for both cards, as I paid more than 2 or 3 times the card limit and it's been blocked for more than 3 years. The collection agent keeps on calling and saying a maximum of 3 installments for 7000 as a settlement but I am not able to afford that amount. Also, the bank is denying to talk and telling me to contact the collection agency for settlement and the bank is not responsible for this. Can you please guide me in this?

Q: Hi, The credit card people are contacting me after 3 years. They said it's a call from a lawyer's office and the guy writes provocative messages on Whatsapp to show that I am not willing to cooperate. How long is the security cheque valid for? Can they contact my employer? The thing is I was paying until I found out that it was not added to the amount but considered as fines and fees! Then I lost my job, left the country for 2 yrs, and came back. The amount they claim is 9k. Thank you.

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.

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.