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In Sharjah, United Arab Emirates (UAE), the laws related to debt collect, and loan repayment mainly fall under the UAE Federal Law no. (18) of 1993 regarding the Commercial Transactions Law. It facility information on bounced cheques, insolvent debtors, and loan repayment and has specific rules established to manage credit and debt related disputes.
Managing debts or pursuing debtors in the UAE can be an intricate and arduous process. You might need a lawyer to help navigate through the complexities of the law, especially if you're a foreign resident unfamiliar with the local regulations. Typical situations requiring a lawyer include trying to recover a debt, handling a bounced cheque case, or if you've been declared insolvent and need help outlining a repayment plan to avoid imprisonment.
Some fundamental principles of the debt and collection law in Sharjah include the enforcement of payments on delinquent accounts, dealing with debt collection companies or agencies, and provisions relating to bounced cheques. Under the law, if you are a debtor declared insolvent, you may face imprisonment unless you can establish a reasonable repayment plan. Creditors have the right to apply to the court to force repayment, while debt Collection Agencies are regulated to ensure fair practices.
If you're unable to repay your debt, your creditor has the right to go to court and force payment. However, a debtor declared insolvent can avoid imprisonment by establishing a reasonable repayment plan acceptable to the creditor.
Bouncing cheques is a serious criminal offence in the UAE. If a cheque is returned by a bank due to insufficient funds, the cheque holder may report it to the police, and the issuer may face both financial penalties and imprisonment.
Debt collection agencies are regulated under UAE law. The agencies are forbidden to harass, oppress, or abuse any person in the course of their collection practices.
Sharjah follows the federal laws of UAE, which do not cap interest rates. However, both parties must agree to the interest rate at the time of signing a loan contract.
UAE law offers protection against any unfair practices like exploitation, harassment, or threats. If you are a victim of any such conduct, you can file a complaint with the relevant government authorities.
Authorities such as the Central Bank of the UAE, Sharjah Police, and Sharjah Courts provide resources related to debt and collection regulations. They facilitate information on how to deal with cases of insolvency, bounced cheques, and unfair practices by debt collection agencies.
If you need legal assistance in resolving issues related to debt and collection, start by reaching out to a qualified local lawyer specializing in UAE debt law. They can help understand your unique situation and propose the most effective course of action in compliance with local regulations. Also, familiarize yourself with the laws regarding debt and collection in Sharjah to know your rights and obligations.
