Defined: What are the implications for Unpaid Loans within the Financial institution

Query: I took out a financial institution mortgage and gave them a cheque as a assure. Now although, I’m not in a position to pay the mortgage and the financial institution is threatening to file a case towards me. What are the potential circumstances they might file and what can be the anticipated final result?

Reply: If the financial institution tries to money the cheque and there are inadequate funds, they could file a case towards you for a bounced cheque, beneath article 401 of the UAE Felony Procedures Legislation, which states that “detention or a high quality shall be imposed upon anybody who, in unhealthy religion, offers a cheque with no adequate and drawable stability or who, after giving a cheque, withdraws all or a part of the stability, making the stability inadequate for settlement of the cheque, or if he orders a drawee to not money a cheque or makes or indicators the cheque in a way that forestalls it from being cashed
Nonetheless if the examine quantity is lower than 200,000 dirhams then the punishment will likely be solely fines.

Additionally, the financial institution could request that the courtroom imposes provisional attachment in your property, in accordance with article 252 of the above regulation. If a decide grants this provisional attachment, it might be imposed with out you understanding about it, in accordance with article 259 of the identical regulation. As well as, the financial institution has the suitable to file for a journey ban on you and make a industrial declare of the cheque worth along with curiosity at 12 per cent from the date of the cheque, plus courtroom expenses and lawyer charges.

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