Q: I took a loan of around AED 350,000 in Sept or Oct 2016 (24 out of 48 instalments have been paid and the outstanding amount is AED 248,585). Last year in Aug 2017, I was made redundant from my job. The gratuity which was transferred to the bank was not released to me. That amount took care of my instalments till Sept. 2018. The recovery person called me for the Oct. instalment but I told him I do not have a job or money to pay him. I read in the news that since last year jail term has been abolished for expatriates. I need to know if the bank files a case against me how much do I need to pay as a fine and what is the worst the bank can do about it. I had a previous loan with the same bank and then I topped it up. Can you tell me the fines for both Dubai & Abu Dhabi as I am not sure which region they will file the case? The bank is Dubai based but I got the loan in Abu Dhabi.

Q: I currently have two credit cards with a debt in the UAE and have left the country due to my daughter’s health. I have been in contact with the bank and tried to make the payments. I have emailed with no response. I finally received a response from the collection department after many emails. I told them I wanted to make the payment and asked how. They gave a method so I made the first payment and said I would continue to make a monthly payment. Before the next payment was due, I received another email saying they were going to open a legal case against me for not making any payments. I emailed again and sent the proof of payment. I asked if I could still make the monthly payments and I never received a reply. Then I get another email saying they presented my cheque, which bounced, and they were going to seek further legal action in the UAE and country of residence. I emailed again to sort this issue but haven’t received a reply. What are my options as I want to clear this debt?

Q: Hi, I took a loan from a UAE Bank for AED 450,000, I now have AED 230,000 of the loan outstanding. Due to delay in my salary, I missed 3 instalments and the bank deposited my security cheque for 600,000 AED and it bounced. My bank filed a case with the police 10 days ago. I went to issue a visa for my daughter and was informed that I can not complete the application as I have a police case for bounced cheque 10 days ago against me in Qusais Police Station. I am trying to get refinance from my bank, assuming the refinance doesn't go ahead, kindly advise: 1- When would it be likely to get called to the police station (how many days typically after a case is filed). 2- When called the first time, am I likely to spend time jailed in a police station or can I walk out the same day if I surrender my passport. 3- Will a fine be imposed? 4- If this goes to court, what is the likely sentence? 5- Is my liability to the bank AED 600,000 or 230,000 AED? I intend to pay in full over 2 years

Q: Dear Mr Ibrahim, I have a dispute with my mortgage bank. They have been overcharging me, I am sure of it. It is Islamic finance and after 11 years of paying a total of AED 1.2M, my principal has only reduced by 100,000 dirhams. I have asked them for all my statements and calculations but they do not respond. I am applying for Canadian PR. I am concerned they will bounce my security cheque to put pressure on me and then I will not get PCC. Can we approach the court to let them know this is a dispute and remove the bounced cheque from records as I wish to settle with the bank but they do not respond? Thanks

Q: The bank has already filed a criminal case against my security check that they asked me to sign prior to taking the personal loan (after defaulting two EMI's payments, because I resigned from my job and currently still unemployed). My outstanding loan is AED 58,303. I have already paid them around AED 65K, and the amount they wrote on the check is AED 124K. Now I am confused about where should I go first; to the police station or to the bank to make a settlement? Please advice. Thank you!

Q: I have a case in the UAE due to personal loans and not paying monthly instalments after job loss and other family issues. I went back to India in March 2019. The loan is not paid since Aug 2019 and I cleared all the dues on Jan 8th 2020. I informed the bank to withdraw the cases and allow me to come back to the UAE. At that time, they didn't accept and informed me to go for a one-time settlement which I cannot. I tried several times to have an amicable settlement but they are not accepting. Now they come up with a solution of paying AED 25000 as down payment and the remaining AED 40000 in 20 instalments. Due to my current financial crisis, I am not able to pay this. Is there any other solution to sort out this matter? Another thing now, I got an offer in a Qatar-based company. Is there any problem That I will face while I'm trying to enter Qatar? Please help. I need to get out of these issues.

Q: Hi Lawyer, I had a criminal financial case for a cheque return from a bank credit card for 55,000 in 2020 and paid AED 5,000 fine penalty from the court to remove the case. Now the bank is contacting me regularly asking to settle an amount of AED 400,000. Can they put a case for the entire amount? or the amount which I really owe them?

Q: Hi My husband has a loan and credit card from a bank, which he was always paying on time. I left my job and we got financial commitments, due to which we couldn't make the payment in the past 2 -3 months. We contacted the remediation department but they were not ready to help us. His outstanding loan is 72000 and his credit card is 22,500 overdue. He has noticed the account is showing -200,000 all of a sudden. What can that be? I wanna know as he is unable to pay the full outstanding payment of both the loan and credit card. He has informed the bank that he can contribute towards the bank just 1500 (both loan and cc). What would the next step of the bank be and is there any way we can solve it? Thanks

Q: Hi. I would like to know if the bank seized the vehicle and sold it out, can they claim the amount by a civil case?

The management of individual financial affairs is crucial and all the actions must be weighed down while committing to any financial liability. Whether it's job loss that may have lead to financial failure or the opposite, one must be aware of the personal liability which will not diminish by paying fines for cheque bounce cases. There are two major types of liabilities, criminal liability and civil liability. Each has its own significance, hence, must be dealt with accordingly.

This Law promulgates the Federal Penal Code (Criminal Law) of the United Arab Emirates. Crimes and chastisement punishments shall be determined in accordance with the provisions of this Law and other penal codes.

The provisions of this law, promulgating UAE Civil Code, govern the civil transactions in the United Arab Emirates. The commercial transactions remain subject to the laws and regulations applicable in their regard.