UAE: Defaulted on a credit card? Here’s how you can settle your case

UAE: Defaulted on a credit card? Here’s how you can settle your case

A KT reader asks if they can be imprisoned if they are unable to reach a deal with the bank

Published: Sun 30 Jul 2023, 9:51 AM Last updated: Sun 30 Jul 2023, 9:53 AM

Question: I have defaulted on credit card payments due to job loss. I tried to settle at a lower amount, but couldn’t reach a deal with the bank. As a result, the bank has filed a case against me. So, could I be jailed? What options do I have to get out of this financial trouble? How do I get out of this, legally? Please guide.

Answer: Pursuant to your queries, it is assumed that you have not provided a security cheque while availing credit card facility and currently the lender from where you have availed credit card facility has filed a civil case against you for non-payment of credit card instalments. 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 and the provisions of UAE Federal Decree Law no. 42 of 2022 on Civil Procedures Law and the provisions of Federal Decree Law No. 19 on