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Can unpaid credit card debt lead to a travel ban in the UAE?

Dear Lawyers,

I have a credit card from a bank on which I used AED 20k and stopped paying 3 years ago. Now, third-party agents are approaching me to pay back, and the principal amount is AED 27k.

I said that I used only 20k, so why should I pay 27k? They said it’s the minimum interest for AED 20k.

I agreed to pay 15k with a down payment of 5k and the rest 10k in EMI installments, but they did not agree and are forcing me to pay 27k or a lump sum of 20k.

Now, my question is: is there a possibility of a travel ban for this case, or what action can they take against me?

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Mahmoud Khashaba

Al Hajeya Alnoobi Advocates and Legal Consultants

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12 Jul 2024, 12:45

Thank you for contacting us!

Based on the UAE Civil Procedures Law, if the debt is at least AED 10,000, the creditor has the right to request a travel ban on the debtor.

In your case, since the outstanding amount is AED 27,000, there is a possibility that the bank or third-party agents may seek a travel ban if you do not settle the debt.

I advise you to attempt to negotiate a settlement with the bank to pay the principal amount and request a waiver or reduction of the accumulated interest.

If the bank does not agree to this, the worst-case scenario is that they will take legal action, and the court will likely order you to pay the outstanding amount along with any fees and court costs.

12 Jul 2024, 12:59

Thanks for the information!

I really appreciate it. I am trying my best, but the third party and the bank are not agreeing to less than 27k. I do not know what to do, as they asked for 20k in one shot.

12 Jul 2024, 13:01

Suppose the travel ban has already been imposed. If I pay 20k and the legal fees, will that be okay? Or will they again demand interest, which will be 27k?

12 Jul 2024, 13:35

In cases like yours, it is common for the bank or third-party agents to send a formal demand for payment before resorting to legal action.

This notice typically gives you a chance to settle the debt before any further steps are taken, such as imposing a travel ban or filing a court case.

If the matter goes to court, you will have the opportunity to present your case.

You can provide evidence of any payments you have made and request the appointment of a banking expert to review the interest calculations and determine if they are justified.

The court will consider the expert's report along with the documents submitted by both parties before making a decision.

12 Jul 2024, 15:02

OK, thank you so much!

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