A KT reader asks about penalties for not paying these fees
Question: According to common law, can I be arrested for non-payment of debt? What is the penalty for the same if I can’t?
Answer: In the UAE, a credit card issued by a lender to a borrower may fall under the provisions of the laws and regulations governing the terms and conditions of a personal loan. . When a credit facility is provided to a borrower, the borrower may collect checks as security against the credit card limit.
A credit card holder who fails to pay the annual credit card bill or six non-consecutive charges on the credit card may consider it a random occurrence. In accordance with Article 4(4) of the Personal Loan Procedure of the Loan Agreement Procedures Approved by the Central Bank of UAE.
So, in the event of a default, the creditor may choose to hold your check(s) for collection (if any). If the security checks are ignored due to insufficient funds, the creditor can file a lawsuit against you with a request to impose an immigration penalty in accordance with the provisions of the Act of Federal Decree Law No. 14 of 2020.
According to the case filed by a creditor, the court can accept the request and impose a travel ban on you. After that, after 15 days from the date of notifying you, the lender can start the necessary proceedings against you in court and ask to stay issue a warrant against you.
In addition, you can approach the court of competent jurisdiction for the settlement of your debts with your creditor or initiate sanctions against you in accordance with the provisions of the UAE Insolvency Law which it applies to individuals in the UAE. However, it is at the discretion of that court to consider your request for payment of the debt or to initiate a default against you and the debtor may still consider filing criminal and/or civil proceedings against you in the event of debt payment or insolvency proceedings. against you will not be approved by the court.
Ashish Mehta is the founder and Managing Partner of Ashish Mehta & Associates. He is qualified to practice law in Dubai, UK and India. Full details of his company at: www.amalawyers.com. Readers can email their queries to: firstname.lastname@example.org or send them to Legal View, Khaleej Times, PO Box 11243, Dubai.