Explained: What are the consequences for Unpaid Loans in the Bank
Question: I took out a bank loan and gave them a cheque as a guarantee. Now though, I am not able to pay the loan and the bank is threatening to file a case against me. What are the potential cases they could file and what would be the expected outcome? Answer: If the bank tries to cash the cheque and there are insufficient funds, they may file a case against you for a bounced cheque, under article 401 of the UAE Criminal Procedures Law, which states that "detention or a fine shall be imposed upon anyone who, in bad faith, gives a 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 However if the check amount is less than 200,000 dirhams then the punishment will be only fines. Also, the bank may request that the court imposes provisional attachment on your property, in accordance with article 252 of the above law. If a judge grants this provisional attachment, it may be imposed without you knowing about it, in accordance with article 259 of the same law. In addition, the bank has the right to file for a travel ban on you and make a commercial claim of the cheque value in addition to interest at 12 per cent from the date of the cheque, plus court charges and attorney fees. Related Links: tinyurl.com/yvm2v3zm tinyurl.com/ybmc8upu tinyurl.com/yudfjfu2 Do you want to know more? Subscribe here bit.ly/2AMm1f3 Visit our Website ©Hassan Elhais professionallawyer.me. You can call us 24/7 @ +971 4 355 8000 or Email us @ hassan@professionallawyer.me
