Q: Hello, I left the UAE more than a year ago after losing my job and leaving behind a pending amount of AED 400K from a personal loan at a bank (a police case and a ban is already in place), of course. Now, the ACC is showing a higher amount due to fees. However, I was told that banks might consider settling the matter for lower amounts of the pending. Therefore, I am wondering if someone has experience in negotiating these bank debts in the UAE, and if that information/possibility is true. Thank you in advance for your time and support!

Q: Hi, I took a personal loan from a bank in 2018 for AED260000 then I left the country but continued to pay for a while. One month ago in Dec 2020, they have filed a civil case. 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? I am not sure if the bank will be willing to 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 with the borrower, 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 it is AED 293000 with interest and late fee). In a civil case, what are the proceedings if I hire a lawyer? Does it help to get the amount of payment lowered via court? If so, how much lower can the court order to close the case and how long would it take? Thanks!

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: Dear Sir/Madam, I have a cheque bounce civil case in Dubai due to an unpaid loan from a bank. This same bank had filed a case two years ago, but the case was removed due to a new rule. Now, they have filed a new case with a travel ban as well. I am required to pay the entire amount of 100,000 AED in one shot or installments to the bank to settle the case as per the court. Can I file an objection or contest this judgment? If so, what will be the most likely outcome?

Q: Hi, I have received a message from a finance company legal team stating that my file has been sent to start filing a civil case for my personal loan for which I defaulted on its payments. Total loan: AED 98,000 Tenure: 120 months Interest rate: 39.99 Amount Paid: 36,740 No. of Months Pending: 109 pending Amount Pending: 364,060 Principal Amount Pending: 94,547.65 During my settlement discussions, I requested to take into consideration the amount that has been paid towards my loan: 36,740 AED, however, this request has been rejected, and it has been proposed to pay AED 80,000 in one shot. I also requested multiple times to receive the statement of all payments that I made. Requests have been rejected and I have submitted a complaint to the Central Bank which is still under investigation How can I better negotiate a settlement that is more reasonable in order to avoid a civil case? Moreover, what are the procedures of a civil case knowing that a travel ban will be imposed until the entire amount is cleared?

Q: The court has ordered me to pay a certain amount of money (3000 AED) on a monthly basis via the Amanat system (200 AED charges per transaction) until I fully paid the required total amount on my case (cheque settlement for 100K AED). My question is, can I possibly request the court to change the mode of payment on a quarterly basis, and then I will make the payment? The triple equivalent amount of AED 9000 instead? Please advise.

Q: I require legal advice regarding a case related to a cheque bounce. In 2023, a civil case was filed against me due to a bounced cheque. This morning, I submitted a request to the court to convert the case into easy installments, even though I did not have the case documents, as I owed a limit of AED 15,000 on my credit card. When I logged into the MOJ website to check the judgment details, I discovered that the case involved two bounced cheques, each for AED 10,800, which I did not sign. In 2014, when I applied for an auto loan, I received a credit card with a limit of AED 15,000, and I signed a guarantee cheque for that amount. However, I am confused as to how the two cheques for AED 10,800 each were issued. The signatures on both cheques, which amount to AED 10,800 each, are completely different from my actual signature, with each having a different pattern. Who is responsible for this? I would appreciate your guidance on this matter from a legal perspective.

Q: Hi, I have issued a blank cheque for my EMI, and now the company is using my blank cheque and putting any amount to deposit it. My total unpaid balance is AED 19000, but they mentioned AED 42,030 on the cheque and another AED 10000. They told me they will deposit it to file a case. What is my remedy on this matter? 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.

This Law promulgates the Federal Penal Code (Criminal Law) of the United Arab Emirates. Crimes and chastisement punishments shall be determined in accordance with the provisions of this Law and other penal codes.

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.