Missing loan payments in the UAE usually starts a civil debt process, not a criminal one. Under the Central Bank of the UAE's Consumer Protection Standards, your bank must contact you once arrears pass 30 days and send a written notice after 60 days, and arrears can be shared with Al Etihad Credit Bureau (AECB). If the debt stays unpaid, the bank can go to court, and a judge can ban travel for debts of AED 10,000 or more (Civil Procedure Code, Article 324).
Who this guide is for
- People who have missed, or expect to miss, personal loan, car loan or credit card payments.
- People who have lost their job or had their income cut and want to know their options.
- Guarantors and family members trying to understand the process.
This guide covers banks and finance companies licensed by the Central Bank of the UAE (CBUAE) and cases in the onshore courts. Firms licensed in DIFC or ADGM have their own regulators and courts.
What happens after a missed payment?
The loan contract sets when a payment is late and which fees apply. The Central Bank's Consumer Protection Standards then set minimum steps the bank must follow. The table shows a typical path; not every case reaches every stage.
| Stage | What usually happens | Rule |
|---|---|---|
| First missed payment | Late fees under your contract; the missed month can show on your AECB report | Contract; AECB |
| 30 days in arrears | Bank must contact you to find out why the arrears arose | Standards 5.2.5.3 |
| Over 60 days | Written notice of arrears, fees and consequences, sent to you and any guarantor | Standards 5.2.5.4 |
| Arrears continue | Monthly updated arrears notices | Standards 5.2.5.5 |
| Collection | Phone contact and any visits only between 9 AM and 8 PM; no home or work visits without your consent or a court order | Standards 5.2.5.6 |
| Court | Payment order, civil claim or execution of a security cheque | Civil Procedure Code; Commercial Transactions Law |
| Travel ban | Judge may order a ban where the debt is at least AED 10,000 and there is a serious fear you will leave | Civil Procedure Code, Article 324 |
| Execution | Execution judge can order asset searches, attachment and other measures | Civil Procedure Code |
The 60-day notice must explain the possible consequences, including sharing arrears data with the credit bureau, setting off other accounts where the terms allow, selling collateral, demanding payment from guarantors, legal proceedings and continuing interest and fees.
AECB says each facility shows a colour-coded 24-month payment history, and that defaults, missed payments and bounced cheques appear on your report for up to five years. See our guide to correcting your AECB credit report if something is wrong.
Can the bank open a criminal case?
Not being able to pay a loan is, in general, a civil debt matter handled through the civil courts. A criminal complaint may be possible where there is more than non-payment, for example fraud or one of the cheque offences that remain in the Commercial Transactions Law (Federal Decree-Law No. 50 of 2022, Articles 673 to 677), such as closing the account or ordering the bank not to pay outside the cases the law allows. Whether any act is a crime depends on the facts, so ask a licensed lawyer if you receive a police or prosecution summons.
Security cheques. Many loans are backed by post-dated or security cheques. The Standards say a bank may take only cheques covering the instalments, worth no more than 120% of the loan or debit balance, must not take signed blank cheques, and must give you stamped copies. If you repay early, the remaining cheques must be returned within 7 complete business days (Standards 7.1.1.8). A bounced cheque can go straight to the execution judge under Article 667 of the Commercial Transactions Law; see our bounced cheque guide.
What if I lose my job?
Talk to the bank early. The Standards require banks to offer qualified credit counselling and to give reasonable consideration to other arrangements that could help you overcome payment difficulties (5.2.4.1). They must also, where reasonably possible, discuss your difficulties before starting collection or legal action (5.2.5.1).
If you agree a revised plan, the bank must give it to you in writing within 10 complete business days, with a new schedule and a breakdown of payments (5.2.4.4). If the bank rejects your offer, it must tell you in writing why (5.2.4.5). If you were insured under the national unemployment insurance (ILOE) scheme, a claim may give you some income while you look for work.
Step by step
- Read your loan contract. Note the due dates, late fees, any security cheques and any guarantor.
- Contact the bank before the payment is missed. Ask for its debt counselling or collections team.
- Put your situation in writing. Explain the change in income and what you can realistically pay.
- Ask for a revised arrangement. Request a written schedule showing how payments will be split between interest and balance.
- Keep every notice. Save the 30-day and 60-day communications and any monthly arrears statements.
- Check your AECB report. Make sure the bank is reporting the right amounts and status.
- Check who is contacting you. If a collection agent calls, ask for the bank's written confirmation of the agent and its authority.
- Watch for court notices. Respond to any notice to pay, payment order or execution notice by the stated deadline.
- Check for a travel ban before travelling. Use the official channels in our travel ban guide.
- Escalate if needed. If the bank does not follow the Standards, complain to it in writing and then to Sanadak.
Documents checklist
- Loan or card agreement and key facts statement
- Latest statements and the bank's arrears notices
- Copies of any security or post-dated cheques you gave, stamped by the bank
- Termination letter, salary certificate or proof of reduced income
- Your written proposal and the bank's reply
- Recent AECB credit report
- Any court or police notice, with the case number
Common mistakes
- Going silent. Ignoring calls and letters removes the chance to agree a plan before legal action.
- Agreeing only by phone. Ask for every revised arrangement in writing.
- Paying an unverified collector. The bank must tell you if it has appointed a third party and what that party can do, including receiving payments.
- Assuming a travel ban is automatic. A civil ban needs a judge's order, but you should still check before you travel.
- Forgetting the guarantor. A guarantor can be asked to pay, so keep them informed.
- Leaving without a plan. AECB reports a "Left Country" status where a provider believes you have left, and a court case can continue without you.
When to speak to a licensed lawyer
Consider licensed advice if you have received a court notice, a payment order or an execution notice, if a security cheque has been presented, if there are several debts or banks, or if you are summoned by police or the prosecution. The cheque and debt readiness check can help you list what you owe and to whom. The free case check can help you set out the facts first, and CaseDaleel can introduce an independent licensed professional only if you choose.
Frequently asked questions
How many missed payments count as a default?
Your contract defines default; the Central Bank Standards set contact points at 30 days and a written notice after 60 days in arrears, not a single fixed number of missed payments.
Can I leave the UAE if I have an unpaid loan?
There is no automatic ban, but a creditor can ask a judge for one where the debt is at least AED 10,000 and there are serious reasons to fear you will leave, so check official channels first.
Can the bank send collectors to my home or office?
Under the Standards, the bank must not visit your home or workplace without your consent or a court order, and phone contact is limited to 9 AM to 8 PM.
Will the bank take me to court straight away?
The Standards require the bank, where reasonably possible, to discuss your financial difficulties before collection or legal action, and to document those discussions.
Can the bank charge interest on unpaid interest?
No, the Central Bank Standards (7.1.5.12) bar charging interest or profit on accrued interest or profit on consumer credit products.
How long will a default stay on my credit report?
AECB says defaults, missed payments and bounced cheques appear on your credit report for up to five years, even after settlement.
What if I settle the loan later?
Get a written settlement and a liability or clearance letter, then check your AECB report, any travel ban and any court case before treating the matter as closed.
Official sources
- CBUAE Rulebook — Consumer Protection Standards, Article 5: Business Conduct
- CBUAE Rulebook — Consumer Protection Standards, Article 7: Responsible Financing Practice
- UAE Legislation — Federal Decree-Law No. 42 of 2022 issuing the Civil Procedure Code
- UAE Legislation — Federal Decree-Law No. 50 of 2022 issuing the Commercial Transactions Law
- Al Etihad Credit Bureau — FAQs
General information, not legal advice. CaseDaleel is not a law firm.