Khaleej Times, Sunday, Aug 21, 2022 | Muharram 22, 1444
Can a travel ban be imposed over unpaid loans, credit card dues?
Emirates:
Question: I am a Dubai resident. Under what circumstances can a travel
ban be imposed on me over outstanding loans and credit card dues? How do I find
if I have a travel ban?
Response: Pursuant to you queries, it is assumed that you have
outstanding personal loans and you are currently in the UAE. Therefore, the
provisions of Notice No. 3692/2012 of Central Bank of the UAE pertaining to
General Terms & Conditions and Loan Agreements texts drafted and approved by
Emirates Bank Association (the ‘Loan Agreements Formats Approved by Central Bank
of UAE’), Federal Decree Law No. 14 of 2020 Amending Certain Provisions of
Federal Law No. 18 of 1993 Concerning he Commercial Transaction Law ( the
‘Federal Decree Law No. 14 of 2020’) and the provisions of Resolution of the
Cabinet No. 33 of 2020 Amending Certain Provisions of Resolution of the Cabinet
No. 57 of 2018 on the Regulations of the Federal Law No. 11 of 1992 on the Civil
Procedure Code (the ‘Cabinet Resolution No. 33 of 2020) are applicable.
In the UAE, the credit card facility provided by the lender to the borrower may
come under the provisions of rules and regulations governing the terms and
conditions of a personal loan. When a personal loan or credit card facility is
granted to a borrower, the lender may collect cheque/s as security against the
loan amount or the limit of the credit card. This is in addition to a signed
loan agreement or application form which contains the terms and conditions.
An individual failing to pay three consecutive instalments or six
non-consecutive ones on the repayment may be considered as an event of default.
This is in accordance with Article 4(4) of the Personal Loan Agreement format of
Loan Agreements Formats Approved by 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 in accordance with 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."
Therefore, in the case of default, the lender may choose to deposit your
security cheque(s) for collection. Should the said security cheques be
dishonoured due to insufficiency of funds, the lender may file an execution case
against you in accordance with provisions of Federal Decree Law No. 14 of 2020.
In the execution case, upon completion of 15 days from the date of notifying
you, the lender may commence the relevant procedures against you, which may
include a request to impose a travel ban on you. The court may approve such a
request.
Alternatively, for speedy remedy, the lender may approach the court if the
outstanding amount is more than Dh10,000 and request the imposition of a travel
ban on you in accordance with Article 188 of Cabinet Resolution 33 of 2020.
Additionally, the lender may have an option of filing a payment order case or a
civil case against you in a court to recover the outstanding debt. If the final
judgement is not in your favour, the lender may proceed to file execution
proceedings against you and that may include a request to impose a travel ban on
you.
You may approach the lender or the Dubai Police or Dubai Courts to check if you
have any travel ban imposed on you.