How can I reach a loan settlement with the bank on relaxed payments instead of one-time payment?

Dear C,

Thank you for your inquiry. Based on UAE law, here’s a summary of your situation:

Debt Collection: The bank can legally pursue the full amount of debt, including fees and interest. If you can't pay the AED 50,000 lump sum, you should continue negotiating for a manageable payment plan, as banks may accept installment payments or a reduced settlement amount.

Legal Action & Travel Ban: If the bank threatens legal action, they may request a travel ban. However, a judge will review your case, and if you demonstrate your willingness to pay, the judge may provide a more reasonable solution, such as a payment plan.

What You Can Do:

Negotiate with the Bank: Continue to request a reasonable settlement or installment plan.

Seek Legal Assistance: If the bank refuses to cooperate, consider consulting with us as a lawyer to mediate and help negotiate a solution.

Court Process: If the bank files a case, you can present your financial situation, and the judge may offer a payment plan based on your ability to pay.

If the case goes to court, you’ll have an opportunity to settle the matter without facing drastic consequences, such as the travel ban.

Let me know if you'd like further assistance.

Best regards,

Mohammed Salah

Legal Consultant

Greetings,

If the bank’s collection department refuses to negotiate a reasonable settlement and insists on full payment, they may proceed with filing a case against you.

If a case is filed, the court will review the matter, and depending on the circumstances, the judge may provide a structured repayment plan. However, this process could involve a travel ban or other legal consequences.

To protect your rights and explore possible legal solutions, we strongly recommend consulting a lawyer immediately.

Our team can assist you in negotiating with the bank, handling legal proceedings, and ensuring the best possible outcome. Book a consultation with Future Vision for Advocacy and Legal Consultancy today!

To contact us, you can call or WhatsApp us.

Dear Valued Customer,

Thank you for sharing the details of your situation with Emirates Islamic Bank. I appreciate the challenges you're facing and understand your concern regarding the potential legal action.

Given the circumstances you've described, I would like to offer the following professional advice:

1. Direct Communication: It is advisable to maintain open communication with the bank's collection department. Request a formal meeting to discuss your financial situation in detail.

2. Financial Documentation: Prepare a comprehensive overview of your current financial status, including income, expenses, and any assets. This will help substantiate your ability to repay and support your request for a more manageable repayment plan.

3. Negotiation Strategy: When discussing with the bank, emphasize your commitment to repaying the debt while explaining your financial constraints. Propose a structured repayment plan that aligns with your current financial capacity.

4. Debt Restructuring Request: Formally request the bank to consider restructuring your debt. Emirates Islamic Bank does offer such options for customers facing financial hardship.

5. Mediation Services: Consider engaging the services of the UAE Banks Federation's Debt Settlement Committee, which can mediate between you and the bank to reach a mutually acceptable solution.

6. Legal Consultation: If negotiations with the bank prove unsuccessful, it may be prudent to seek advice from a legal professional specializing in banking and finance law in the UAE. They can provide guidance on your rights and potential courses of action.

7. Central Bank Complaint: As a last resort, you may file a complaint with the Central Bank of the UAE if you believe the bank is not adhering to fair practices.

Please note that while the bank's collection department can initiate legal proceedings, it is generally in its interest to reach an amicable resolution. If a case is filed, the court may indeed assist in determining a fair repayment structure.

I strongly advise against ignoring the situation, as this could lead to more severe consequences. Proactive engagement with the bank is crucial in resolving this matter satisfactorily.

Please do not hesitate to ask if you require further clarification or assistance.

Yours sincerely,

We understand your concerns.

There are possibilities to file an objection towards the procedures which will be initiated by them.

before that, we can have a negotiation with them to get a reduction in the outstanding amount and will get an easy payment option.

We will let you know the possibilities in detail. Kindly share your WhatsApp number to discuss this further.

Are you currently working in the UAE?

Which Emirate was the loan taken from?

We understand that the bank is adding interest day by day without being reasonable, considering the original debt, in addition to the constant disturbance from collection agencies.

How to fix all these issues?

The answer is simple — just follow us:

We can assist you in confirming whether the bank has taken any legal action against you or placed a travel ban.

How will this help you?

It will help you plan better and know where to start to get the issue resolved.

Still need more clarity?

Here you go:

First, we recommend negotiating directly with the bank without involving collection agencies. This will save you money, time, and effort, as collection agencies earn commissions based on the amount they collect — the higher the debt, the bigger their commission.

Second, when we negotiate as a law firm, banks take it more seriously and become more willing to settle. Our relationships with banks have helped many clients resolve their cases.

Third, if the bank refuses to settle, we can challenge the case in court to request calculating only the main loan amount without interest and allow repayment through installments.

Fourth, we will continue guiding you until the case is closed and the travel ban is removed.

What are you waiting for? Let us help you solve your financial situation!

I understand your situation and the challenges you are facing.

In cases like yours, where a bank is demanding a lump sum payment and threatening legal action, it is crucial to handle the matter strategically.

Yes, the collection department has the right to file a case if payments are not made, and this could potentially lead to a travel ban or other legal consequences.

However, once the case is in court, the judge will consider your financial situation, past payments, and ability to settle the remaining amount.

The court may allow a more reasonable payment plan, but it depends on how the case is presented and defended.

Given the urgency, I strongly recommend that you take legal action before the bank files a case against you.

We can negotiate with the bank on your behalf to propose a structured settlement plan and, if necessary, challenge any excessive interest or charges.

Reach out to me through WhatsApp or phone, and we can discuss the best course of action to protect you legally and financially.

Best regards,

Suhail Rana

Dear questioner

Either we need to negotiate with the agency or we need to file the objection once the case is filed and request the judge for the fair settlement plan which is affordable according to your current financial condition.

If you need further assistance kindly share your Whatsapp number.