Q: I have AED 52,000 to pay the bank. The cheque bounced by the bank is for an amount of AED 77,100. Advise on the next possible actions… A: The police case will result in a fine only. There won't be any imprisonment. Settle your police case by paying the fine amount and lift your travel ban…

All cities, UAE

981

Bounced cheque case for defaulting on loan payments

Hi.

I have a case filed against me by the bank last month end for failing to pay 2 EMIs.

I have been unemployed since April 2017 and have managed to pay my EMIs from the settlement I received from my previous company and some other EMIs by borrowing money from friends and families.

I have not been able to find suitable employment during this time and I have AED 52,000 to pay the bank (the original amount being AED 254,000).

The cheque bounced by the bank is for an amount of AED 77,100.00. My overdue EMI is AED 9,800, while my outstanding is AED 52,000. The 4-year loan will finish tenure by July 2019.

Before the case was registered by the bank, I had emailed them (also spoke with their rep) to give me a loan deferment, however, they chose not to respond.

Please advise on the next possible actions. I still have not received any calls from any legal authorities. Will I have to face jail term or deportation?

Hari Wadhwana

Al Nassar Advocates & Legal Consultants

Chat

Hire

Meet

20 Jan 2019, 09:37

Dear Sir/ Madam,

Thank you for getting in touch with me on this.

Please note that this is a very common and administrative step taken by the bank in case of default in repayment of a loan.

Considering your bounced cheque amount is less than AED 200k, the police case will result in a fine only. There won't be any imprisonment or deportation, so please don't worry about it.

I would advise you to immediately settle your police case by paying the fine amount and lift your travel ban. Thereafter, get in touch with the bank for an appropriate settlement plan.

I trust you will find this helpful.

You may email me for further assistance and query.

Regards,

Hari Wadhwana

20 Jan 2019, 10:46

Thank you for your reply.

I haven't received any call yet from the police or courts. Do I have to contact them with the case number?

Additionally, will paying the fine alone suffice to remove the case? Or will I require the release paper from the bank?

Unfortunately, I do not have the funds to settle with the bank, and all requests for loan deferment prior to the case being registered was of no heed by the bank.

20 Jan 2019, 11:29

You may or may not be called by police, however, I would recommend that you do a police case check against your name.

Payment of fine will remove the police case from your name and no need to get a letter from the bank.

However, the bank still has an option to file a civil case against you.

Was this content helpful?

Fixed-fee services

3 • View all