Questions & Answers
What to do if a Dubai store hasn't paid for a consignment for months?
Dear Sir/Madam,
As a small business in Dubai, I supplied a store with a consignment and have not been paid since December 2023.
It's a small amount of AED 1300. What can I do?
Dear Questioner,
According to UAE law, the store owner is legally obligated to pay you for the goods you supplied on consignment.
If the store owner is avoiding you and not responding to your attempts to collect payment, you can take the following steps to collect your payment:
1. Send a formal demand letter
The first step you can take is to send a formal demand letter to the store owner. This letter should clearly state the amount owed, the date it was due, and a request for immediate payment. You can send this letter via email or registered mail to have proof of delivery.
2. File a complaint with the Ministry of Economy
If the store owner does not respond to your demand letter, you can file a complaint with the Ministry of Economy. They have a consumer protection department that handles disputes between businesses and consumers. You will need to provide evidence of the consignment agreement and the amount owed.
3. File a case with the Small Claims Tribunal:
If the amount owed is less than AED 100,000, you can file a case with the Small Claims Tribunal. This is a specialized court that handles small disputes and can provide a quicker resolution than a regular court case. You will need to provide evidence of the consignment agreement and the amount owed.
4. Hire a debt collection agency
Dear questioner,
If payments have stopped or become irregular, we need to review the consignment agreement terms regarding payment schedules or late fees and also need to start the procedures for recovering the amount accordingly.
If you need further clarification, please share your WhatsApp number.
