JobXDubai

Understanding the consequences of missed loan or credit card payments in the UAE is crucial for residents and expats. Here’s what you need to know about when banks may file police cases and how it could affect your travel plans.

Key Points:

1. Banks typically file cases after three missed installments
2. The process involves multiple steps before legal action
3. Travel bans may be imposed once a legal case is filed

Bank’s Approach to Missed Payments

1. Written notice requesting payment
2. Legal notice through a notary
3. File moved to collections department
4. Legal department begins legal procedure

When Does a Case Get Filed?

Jihenne Arfaoui, a Dubai-based legal adviser, states:

“Whether it is regarding loans or credit card payments, the general practice is that banks file a case after three installments are missed. However, it’s important to check the signed agreement with the bank, as that would contain the details of the terms and conditions.”

Impact on Travel

Hari Wadhwana, Associate at OGH Legal, clarifies:

“Travelling out of the UAE and missing any installment payment to a bank or financial institution have no correlation, whatsoever. It is when the bank files a legal case against the person, that travelling gets affected.”

Process After Case Filing

1. Bank presents security cheque for encashment
2. If cheque bounces, bank files civil execution case
3. Defaulter has 7 days to make payment
4. Court may impose travel ban if payment isn’t made

Pre-Travel Checklist

If you’ve missed a payment and are about to travel:

1. Check bank statements for any presented cheques
2. Get confirmation from bank if no civil case is filed
3. Visit police station or airport immigration to verify any travel bans
4. Keep bank relationship manager informed of payment delays or changes

Bottom Line

While missing a payment doesn’t immediately result in travel restrictions, it’s crucial to stay on top of your financial obligations in the UAE. Communication with your bank and prompt action can help avoid legal complications and travel disruptions.