When it comes to defaulting on a bank loan or failing to pay your credit card bills, the UAE’s authorities may impose a travel ban on you.
A travel ban may be issued for administrative reasons – by executive bodies such as the Federal Authority for Identity, Citizenship, Customs, and Ports Security (ICP) – or for legal reasons, where a court has imposed restrictions on an individual’s travel.
While bounced checks are no longer a criminal offense, a civil case can still be filed against you for this violation.
In the UAE, rules and regulations governing the terms and conditions of a personal loan may apply to the credit card facility offered by the lender to the borrower. When a borrower receives a personal loan or credit card facility, the lender may demand checks as security for the loan amount or the credit card limit. This is in addition to a completed application form or loan agreement that has been signed and contains the terms and conditions.
An event of default may occur if the borrower misses three consecutive payments or six separate ones on the repayment plan. This is in accordance with Article 4(4) of the Personal Loan Agreement format of Loan Agreements Formats Approved by Central Bank of UAE.
In the event of a default, the lender may decide to deposit the security check(s) for eventual recovery. In the event that the aforementioned security checks are returned for lack of funds, the lender may pursue an execution case against the borrower in accordance with the terms of Federal Decree-Law No. 14 of 2020. In the execution case, the lender may begin the necessary proceedings against you after 15 days have passed since the date of notification, which may include a request to impose a travel ban on you. Such a request might be granted by the court.
Alternatively, if the unpaid balance exceeds Dh10,000, the lender may go to court to seek the imposition of a travel ban on you in accordance with Article 188 of Cabinet Resolution 33 of 2020. In order to recoup the unpaid debt, the lender may also have the option of bringing a civil case against you or a payment order case in court. In the event that the lender loses the appeal, they may move forward with filing execution proceedings, which could involve asking for a travel ban.
To find out if you have a travel ban imposed on you, you can speak with your lender, the Dubai Police, or the Dubai Courts.
Residents can also check if they have a travel ban because of financial matters in the emirate online according to a tool provided by the Dubai Police. To use the service on the police website or app, residents must have their Emirates ID on hand.
