Latest News

We understand the importance of availability, and we act on it.

UAE – Bank Debts are Not Waived Off by Imprisonment or Fines


Know what you may face when you have defaulted on loans and credit card payments.

If you have defaulted on loans or credit card payments and the bank filed a cause against you and taken legal recourse that resulted in imprisonment or a fine, this  does not mean that the matter is over or that you are relieved of the debts to the bank. It is important to understand that if the debt is still pending, the bank has the right to file a civil lawsuit demanding the full debt with interest.

To differentiate between the criminal case and the civil, the former is independent of the civil and aims to deter those who are delaying payments or taking bank loans and in bad faith not making payments towards their debts. This aims to protect the financial system and its transactions. As for the civil case which follows the criminal case, the bank files a civil lawsuit to demand its full rights with interest without having to refer to the criminal case.

This ensures trust in the financial system and the strengthening of bank’s risk appetite to lend.

You might also like...
Insurance Coverage for the Unemployed in The UAE – January 2023
His Excellency Dr. Al Awar, Minister of Human Resources and Emiratisation on 12 May 2022, introduced adoption of new Federal Law on the unemployment insurance scheme through insurance packages, from January 2023 to employees of all nationalities.
read More
Borrowers and Credit Card Holders Beware!
On 4 May 2022, the Central Bank of UAE (CBUAE) raised the Base Rate applicable to the Overnight Deposit Facility (ODF) by 50 points. This decision was influenced after the U.S. Federal Reserve raised its target rate by 50 points in the face of inflation.
read More
Small Business Owners, Rejoice!
The UAE has always been an attractive hub for business owners from all over the world due to its tax-free commerce status. The government is now focusing on new beginnings and has set new rules to help local and small businesses thrive.
read More
Thanks, got it!
Something went wrong, please try again.

Use our online calendar to set up your own appointment and connect to an elawyer for a consultation.