Dear TFT,
When does non-payment of dues such as bank’s EMI or credit card repayment become a criminal/civil offence?
What is the penalty for it in the UAE?
Can I be stopped from flying out of the UAE if I have dues to be paid?
Answer:
Non-payment of a bank loan is not a criminal offense on its own.
However, a bank can file a civil case for the recovery. The bank takes your cheque for payment and the bank has the right to submit that cheque to your bank account.
If that cheque is dishonored for any reason, it is a criminal offense under the UAE Penal law.
You can be prosecuted for the cheque dishonor.
After the cheque is dishonored, the bank can file a criminal case against the signatory in the Police station.
In this situation, the person will be wanted by the police and a travel ban will be imposed in the system.
Dubai Public prosecution decides below AED 200,000 with the fines:
Bounced cheques value AED 1 to 50,000 = fines AED 2,000
AED 50,000 to 100,000= Fines AED 5,000
AED 100,000 to 200,000 = Fines AED 10,000
More than the above-mentioned amount case will be referred to the Dubai courts and the court can order for fine and imprisonment.
Keep in mind that fines imposed by the public prosecution or court are payable to the UAE government and not as compensation to the complainant.
Banks can take civil action for non-payment of the loaned amount.
It can file a civil suit in the court and take a travel ban order in the Civil recovery claim proceeding and also in the execution proceeding if a person doesn’t pay the ordered amount.
