What happens if you leave UAE without paying off debt

What happens if you leave UAE without paying off debt

Know your legal rights in the UAE.





Q: I am a resident of the UAE and I am planning to go back to my home country soon. I need an advice on the legal consequences I may face if I leave the country after the cancellation of my residence visa but without settling outstanding credit card debt and personal loans. 

Answer

It should be noted that in the UAE, when a personal loan or a credit card facility is granted to a borrower, banks or financial institutions may collect cheque/s as security against the loan amount. This is in addition to a signed personal loan agreement or a signed application form which contains terms and conditions. 

Failing to pay three consecutive installments or six non-consecutive installments on the repayment of your personal loans or credit card facilities may be considered an event of default, in accordance with Article 4(4) of the Personal Loan Agreement format appended to Notice No. (3692/2012) of the Central Bank of the UAE. 

The Article 4(4) of the Personal Loan Agreement format, approved by the Central Bank of the UAE, states that: "The loan elapses and all the installments, interests and any other fees and expenses become due