Question: I have availed a personal loan from a bank in the UAE. However, owing to loss of employment, my visa was cancelled and I had to leave the country. I have found a new job in my home country, and am trying to contact the bank concerned to reschedule my loan as I am willing to repay the outstanding amounts. But the bank has filed a complaint against me in the UAE.
You have not specified the nature of the complaint filed against you, and therefore our response shall be based on two probable scenarios, viz. complaint on dishonour of security cheque and a civil suit being filed against you for recovery of debt.
In the UAE, banks usually collect cheques from the debtors as security against loan, and they reserve the right to submit such cheque for encashment for recovery of dues from the debtor. If the cheque gets dishonoured, the banks have the right to file criminal case against the debtors concerned. This is in accordance with Section 401 of Federal Law No. 3 of 1980 which reads as follows:
"Detention or a fine shall be imposed upon anyone who, in bad faith, gives a draft (cheque) without a sufficient and drawable balance or who, after giving a cheque, withdraws all or part of the balance, making the balance insufficient for settlement of the cheque, or if he orders a drawee not to cash a cheque or makes or signs the cheque in a manner that prevents it from being cashed. The same penalty shall apply to anyone who endorses a cheque in favour of another or gives him a bearer draft, knowing that there is no sufficient balance to honour the cheque or that it is not drawable."
Hence, if you issued cheque/s in favour of your bank and the same got dishonoured upon submission, we understand that the bank had subsequently filed a criminal complaint against you.
It may also be noted that your bank would reserve rights to simultaneously initiate a civil suit against you for recovery of dues from you.
Since you are interested in settlement of your dues against the bank, you may consider to appoint a legal practitioner in the UAE, who may on your behalf contact and negotiate with the bank for an alternative repayment plan, and also for withdrawal of the complaint/s filed or civil suits initiated against you.
In the event the bank agrees and provides a repayment plan for you, you may be able to rehabilitate your outstanding loan and get it out of default. Once your dues against the bank are settled, your legal counsel may further obtain a 'no dues certificate' for you from the bank.
Know the law: Detention or a fine shall be imposed upon anyone who gives a draft (cheque) without a sufficient and drawable balance or who, after giving a cheque, withdraws all or part of the balance, making the balance insufficient for settlement of the cheque.
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