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.

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)

Clearance
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.

Q: 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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Related Pages
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Car Registration/Renew
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
Labour Card Lost
Lost Reporting
Mulkiya (Vehicle Ownership Certificate) Lost
Passport Lost
Police Clearance Certificate-Dubai
PCC Attestation - UAE Embassy Delhi
PCC India
PCC Out of Country
RTA Related Business Activities
Validation Letter - Driving License
Vehicle Ownership Certificate Lost