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Credit card and loan cases in Dubai

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How the loan cycle works

+ A security cheque is taken by the bank as a guarantee for the loans and credit card limit.

+ The amount on the security cheque is equivalent to loan amount plus 20 percent of the principal.

+ In the case of credit cards, the amount on the security cheque the card limit plus 20 percent.

+ When a default is recorded, first the customer is contacted and the legal implications are explained.

+ When unable to contact the customer, references given in the loan application document are contacted.

+ In most cases banks wait up to three successive non-payment of installments or credit card minimum payment outstanding before security cheque is presented to encash the outstanding.

+ When the security cheque bounce, the bank files a criminal case against the customer with the police.

+ After filling the criminal case, police departments intimate residency departments which will stop renewing residency visa of the defaulter, dependents and employees.

How to clear Credit card cheque bounce case in Dubai?
Once your cheque is bounced, concerned bank will file a case with police station. Then you cannot renew your own visa or dependents visa or travel out of UAE.  In this situation, you can approach the concerned police station and take appointment for next day to consider your case by Dubai Public Prosecution which has units in most of the police stations. If the cheque amount is less than Dh50,000, Prosecution will fine you Dh2020. You can pay the fine then and there and get cleared from the case. If the amount is more than Dh50,000, the case will be transferred to Civil court.

How to get out of legal fix posed by credit card debts

Q: What are the legal options if credit card payments have not been made and the case is referred to a court? Once the person concerned gets a clearance paper from court and pays the fine amount, will he/she be cleared from the blacklist? Can the bank still call him and threaten for payment?

A: We understand that your queries are related to non-payment of credit card dues and consequences thereafter as a defaulting customer in case the bank files a criminal complaint against you.

It is a standard practice for banks here in the UAE to obtain a cheque, as a security, from its customer covering the total credit facility granted on the credit card, at the time of issuance of a credit card to its customers. In case of default of credit card payments by its customer, the banks may deposit the said security cheque after serving several oral and written reminders to its customer. Upon dishonour of this cheque, the bank will initiate a criminal compliant against its customer.

It should be noted that pursuant to a default in non-payment of amount due to the bank by the holder of a credit card, the bank might initiate criminal and/or civil legal action against the holder of the credit card. Pursuant to a criminal case filed by the bank against the person who has signed the cheque, the court may issue a judgment against the signatory of the cheque in accordance with the Article 401 of Federal Law No. 3 of 1987 regarding the Issuance of Penal Code, which states, "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 any one 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."

In case of a criminal complaint filed by the bank, a restriction will be imposed on the signatory of the cheque from travelling out of the UAE. Similarly in the event the bank files a civil case against a cardholder, it may seek an order from the court to impose a restriction on the cardholder to travel out of the UAE.

Upon payment of the outstanding amount to the bank, preferably before the court pronounces the final judgment, the accused may obtain a clearance letter from the bank and/or the court and thereafter the accused is at liberty to freely travel in and out of the UAE.

The black listing and or travel ban cannot be lifted by the immigration department until the bank or the Court provides a written letter to the General Directorate of Residency and Foreigners' Affairs that the customer's name can be removed from the black list including lifting of the travel ban.

The bank can always call you to follow up on the payment of dues. On what basis do you consider this follow up as a threat?

However, a defaulting customer of the bank should not issue a cheque to the bank without writing an amount on this cheque as banks are prohibited to obtain such a cheque in accordance with Article 15 (b) of Central Bank of UAE Regulation No. 29/2011 related to "Regulations Regarding Bank Loans & Services Offered to Individual Customers' which states, "Banks and finance companies are prohibited from taking blank cheques for granting loans or overdraft facilities, or for issuing credit cards." (KT)

Will I be arrested at airport over unpaid bank loan?

Q: I am a UAE resident working in a company. There is a police case filed against me by a bank due to an unpaid loan and credit card. I have been out of the country for more than two months. Now, I want to return to the UAE and reach a settlement with the bank. What are my options once I arrive in Dubai?

A: If the questioner comes back to the UAE, he will be arrested at the airport as the system will flag his name in connection with the case filed against him. The questioner will be presented to the police station at Dubai Airport and his statement will be recorded. The questioner can then ask the police station to release him on bail after keeping his passport as guarantee. Accordingly, he will be directed to approach the Public Prosecution to settle the matter or refer the case to a competent court in case of non-settlement.(GN)


Once the payment is settled, bank has to submit a clearance letter to police department and police will intimate residency department. Then only the person's name will be cleared from blacklist.

I was working in Dubai,  for more than six years. Four months ago I went back home on vacation and didn't return to the UAE due to my father's illness and also my financial problem. I have a bank credit card and I didn't pay it to the bank. Now I am unemployed and unable to pay it.
After a month my company called me to come back but I didn't go due to family and financial problems. My company told me they were going to cancel my visa. My visa also expired on September 2012.
I came to know that the bank filed a police and Interpol case against me and my name is blacklisted and I can't go back to Dubai or any other Gulf country.

A: If you intend to repay the bank, you may delegate someone to make the repayment to the bank on your behalf and to get clearance from the bank to lift your name from the blacklist and Interpol list. Thus, you may further settle the matter with your company either by returning to work after the bank problem or ask the company to cancel your residence visa legally to avoid violating the Labour Law as well as the law of the Department of Naturalisation and Residence (Dubai General Directorate of Residency and Foreigners Affairs)-GN.
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Car Theft
Cheque Bounce
DPS (Department of Protective Systems) Activities
Driving License
Driving License Lost
Driving in UAE
Emirates ID Lost
Fine (Mulkiya, Driving License)
International Driving Permit
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Lost Reporting
Mulkiya (Vehicle Ownership Certificate) Lost
Passport Lost
Police Clearance Certificate-Dubai
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RTA Related Business Activities
Validation Letter - Driving License
Vehicle Ownership Certificate Lost

Investor Visa

Employment Visa During Ban Period


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