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Khaleej Times
20-05-2025
- Business
- Khaleej Times
UAE: How to check for a travel ban due to credit card debt
Question: I have multiple bank cases due to failure to repay my credit card payments after I lost my job. I managed to clear payments on some of the credit cards. But I forgot to keep a record of them. I must travel to my home country urgently, but I don't know whether any legal cases are still pending. How can I find out about the travel ban, and can I travel abroad if there are cases against me? Answer: A credit card holder who fails to pay three consecutive monthly or six non-consecutive bills may be considered in default. This is under Article 4 (4) of the Personal Loan Agreement format of Loan Agreements Formats Approved by the Central Bank of UAE, which states: "The loan elapses and all the instalments, interests and any other fees and expenses become due and payable immediately without having to give any notification or any court ruling and without prejudice to any other rights of the bank according to this agreement or by the law - in the event that the borrower failed to pay three consecutive instalments or six non-consecutive instalments of the monthly instalments without approval of the bank." In the UAE, a competent court can impose a travel ban when a creditor submits a request demonstrating the existence of a serious, due, and specific financial obligation of the outstanding amount of more than Dh10,000. The court may require the creditor to provide a financial guarantee to cover any potential harm to the debtor if the ban is later found to be unjustified. This is by Article 324 of Federal Decree-Law No. 42 of 2022, promulgating the Civil Procedure Code. Furthermore, a travel ban issued against a debtor remains in effect until the debt is settled. However, the court may lift the ban if the reason for it no longer exists, the creditor agrees in writing, and the debtor provides a sufficient bank guarantee or approved guarantor or deposits the full debt amount with the court. It may also be lifted if the creditor fails to file a case within 8 days or start enforcement within 30 days of a final judgment, if no enforcement action has been taken for three years, or if authorities confirm the debtor's stay in the UAE is illegal and they are to be deported. This is in accordance with Article 325 of the UAE Civil Code, "The travel ban order shall remain in force until the expiration, for whatever reason, of the debtor's obligation towards their creditor who has obtained the order. Nevertheless, the competent judge may order that the aforesaid ban shall lapse in the following cases: If any of the conditions necessary for the making of the travel ban order lapse; If the Creditor agrees in writing that the order may be revoked; If the debtor submits a sufficient bank guarantee, or a solvent guarantor accepted by the Judge, and the bail report that includes the guarantor's undertaking is accompanied by the judgment or order issued to oblige the debtor with an Execution Writ before them, with what this judgment decrees; If the debtor lodges with the Court's Treasury a sum of money equivalent to the debt and the expenses, earmarked for the satisfaction of the right of the creditor on whose application the order was made, and such sum shall be deemed to be under attachment by operation of law in favour of the creditor; If the creditor fails to submit to the Judge material to demonstrate that the action for the debt has been brought within (8) eight days from the making of the travel ban order, or if they have not commenced enforcement of a final judgment made in their favour within (30) thirty days from such judgment becoming final; If (3) three years have elapsed since the last valid procedure of executing the final judgment on the debt, the travel ban order was issued to satisfy it, without the creditor applying to the Execution Judge with a request to continue the procedures for executing such judgment; or If a request is received from the competent authorities stating that the stay of the person banned from travelling in the State has become illegal and they shall be deported, and it is not proven that they have assets in the State that can be subjected to execution." In the UAE, failure to repay credit card debt may result in civil proceedings, depending on the terms of the credit arrangement and whether post-dated cheques or signed undertakings were involved. If a bank initiates legal action, it could lead to a civil court case. If you have settled some of your credit card accounts but did not retain records of payment, and are uncertain whether any legal actions are still pending, it may be advisable to verify your legal status/travel ban before planning to leave the UAE. This can be done through online platforms like the Dubai Police Smart App or by visiting a local police station. Additionally, you may check with the Dubai Court if any cases have been filed against you. Alternatively, you may appoint legal counsel in the UAE to act for you. Ashish Mehta is the founder and Managing Partner of Ashish Mehta & Associates. He is qualified to practise law in Dubai, the United Kingdom and India. Full details of his firm on: Readers may e-mail their questions to: news@ or send them to Legal View, Khaleej Times, PO Box 11243, Dubai.
Hi Dubai
12-05-2025
- Hi Dubai
UAE: How to Verify a Travel Ban Related to Credit Card Debt?
Question: I defaulted on several credit card payments after losing my job, and although I've settled some of the debts, I no longer have records of those payments. I need to travel urgently to my home country, but I'm unsure if any legal cases or travel bans are still in effect. How can I check my legal status, and am I allowed to leave the UAE if any cases are pending? Answer: A UAE resident who defaulted on multiple credit cards after losing their job is now facing an urgent need to travel to their home country — but without proof of cleared payments, they are unsure if any legal cases or travel bans remain. This raises a critical question: how can one check their legal status, and is it possible to leave the UAE if any financial cases are pending? Under UAE banking regulations, missing three consecutive or six non-consecutive monthly payments can result in default status, allowing banks to demand full repayment without prior court action. This clause is outlined in Article 4(4) of the Personal Loan Agreement format approved by the UAE Central Bank. If a bank takes the matter to court and the outstanding amount exceeds Dh10,000, a judge can impose a travel ban. This falls under Article 324 of Federal Decree-Law No. 42 of 2022. A travel ban remains in place until the debt is cleared, though it can be lifted if the creditor consents in writing, if the debtor provides a sufficient guarantee, or if the full debt is deposited with the court. Other conditions for lifting a ban include creditor inaction—such as failing to file a case within eight days of the ban or not initiating enforcement within 30 days of a final judgment. A ban may also lapse if three years pass without enforcement or if the individual's UAE stay becomes illegal and deportation is ordered. To avoid complications, anyone unsure about pending cases or travel restrictions should confirm their legal status before attempting to leave the country. This can be done through the Dubai Police Smart App, at a local police station, or by checking with Dubai Courts. Engaging a UAE-based lawyer to conduct the checks and represent the individual may also be a prudent step. Civil proceedings, not criminal charges, typically follow credit card default—especially if no post-dated cheques were involved. But even civil cases can lead to significant legal and travel limitations if left unresolved. For those in similar situations, proactive legal verification is essential to avoid unexpected airport detentions or denied departures. News Source: Khaleej Times
Hi Dubai
10-02-2025
- Business
- Hi Dubai
What Legal Options Do You Have If You Can't Pay Credit Card Bills in the UAE?
Facing financial hardship and struggling to meet your credit card obligations can be a stressful experience. In the UAE, credit card debt is treated under regulations similar to personal loans, and understanding your legal options and potential consequences is crucial. What Happens If You Default on Credit Card Payments? When you receive a credit card, lenders often require security, such as post-dated cheques, along with a signed agreement detailing the terms and conditions. Missing payments can have serious implications: Event of Default: Missing three consecutive payments or six non-consecutive payments is considered an event of default. payments or payments is considered an event of default. Under Article 4(4) of the Personal Loan Agreement (UAE Central Bank's Notice No. 3692/2012), the lender can demand the entire outstanding amount immediately, without prior notice or court ruling. Cheque Dishonor and Legal Action: If the lender presents the post-dated security cheque(s) for collection and they are dishonored due to insufficient funds, the lender can file an execution case under Federal Decree-Law No. 50 of 2022 on Commercial Transactions. Travel Ban or Court Action: If the outstanding balance exceeds Dh10,000 , the lender may seek a court order to impose a travel ban as per Articles 324 and 325 of the UAE Civil Procedures Law (Federal Decree-Law No. 42 of 2022). , the lender may seek a to impose a travel ban as per of the UAE Civil Procedures Law (Federal Decree-Law No. 42 of 2022). The lender can also file a payment order or civil case to recover the debt. If the court rules in favor of the lender, further enforcement actions, such as a travel ban or an arrest warrant, may follow. What Should You Do? Contact Your Bank: It is highly advisable to communicate with your bank or financial institution to explain your financial difficulties. You can request relief options such as installment payment plans or a waiver of penalties. The bank has the discretion to approve or deny your request. Consider Insolvency Proceedings: If you are unable to settle your debts, you may explore insolvency proceedings under the UAE Insolvency Law, which can provide legal relief and help you manage your financial obligations. Key Takeaway While lenders have the right to pursue legal actions, including the collection of cheques, court cases, and travel bans, you may still have options to mitigate the situation. Open communication with your bank and exploring insolvency laws can help you navigate through financial hardship while minimizing legal repercussions. News Source: Khaleej Times
