Questions & Answers
I defaulted on a personal loan and the finance company filed a civil case with a much higher amount
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?
We will open a civil case and ask for a financial expert to review all the cases and remove the double interest and we will make a request asking for installment.
For further information, contact us on the phone.
Abdelaziz Elzaabi law firm
Dear client,
You can amicably try with the finance company and in case they reject to settle, you can file an accountant case to fix the due amount.
You can also wait till the bank files the case and then request to appoint an expert in the same case.
In case the bank files the case with the bounced cheques which you we think issued to the bank as warrantee then you can file a dispute and request to appoint an expert to fix the due amount.
For more info, you can WhatsApp us.
Thanks
Dear questioner
We can negotiate with the bank for an affordable one-time shot payment plan or can appear in Court on your behalf and request an affordable monthly payment plan or one-shot payment that you can afford.
The travel ban is only initiated in the time of execution stage. Please share your WhatsApp number so we can discuss this in detail.
Dear L,
Thanks for your inquiry.
Regarding your inquiry, and as per UAE law, if you have defaulted on your loan payments, the lender has the right to take legal action against you to recover the outstanding amount. This can include filing a civil case against you.
In your case, it seems that the lender has already sent your file to their legal team to start the process of filing a civil case.
It is important to note that the lender has the right to reject your request for a settlement and demand the full outstanding amount.
To negotiate a more reasonable settlement, you can try to communicate with the lender and explain your financial situation.
You can also provide proof of the payments you have made towards the loan and request a statement of all payments.
However, ultimately it is up to the lender to decide whether they want to accept a settlement or not.
If a civil case is filed against you, the court will issue a judgment and you will be required to pay the outstanding amount.
If you fail to do so, the court may impose a travel ban on you until the debt is cleared.
It is important to seek legal advice and representation if a civil case is filed against you. We as your lawyer, can help you negotiate a settlement or defend your case in court.
It is also advisable to try and resolve the issue with the lender before a civil case is filed, as it can be a lengthy and costly process.
Please feel free to contact us by phone or email.
Regards,
