What happens when you miss UAE credit card payments — defaults to travel bans, explained

Dubai: If you’ve fallen behind on your credit card payments in the UAE, you’re not alone. Many residents struggle to keep up, especially when unexpected expenses pile up.

But under UAE law, missing payments doesn’t just hurt your credit score — it can quickly turn into a legal issue, with the risk of default, court cases, or even a travel ban.

Here’s how it all works — and what you can do before things get that far.

When late dues turn default

Banks usually send reminders or apply late fees if you miss one or two payments.

But under Article 4(4) of the Personal Loan Agreement format approved by the UAE Central Bank, if you miss three consecutive or six non-consecutive monthly payments, it’s considered a default.

Once that happens, your entire credit card balance becomes due immediately — not just the missed instalments. The bank doesn’t need to give you advance notice or obtain a court order to demand full repayment.

This rule also applies because a credit card is treated as a form of personal loan facility in the UAE. When you sign your credit card agreement, it’s governed by the same framework that covers personal loans.

What happens after default

When you apply for a credit card, the bank often asks for a security cheque that covers your card limit. If you default, that cheque can be deposited for collection.

If the cheque bounces — usually because there aren’t enough funds — the bank can file an execution case under Federal Decree-Law No. 50 of 2022 (Commercial Transactions Law).

If the outstanding balance is more than Dh10,000, the bank can also request a travel ban from the court under Article 324 of Federal Decree-Law No. 42 of 2022 (Civil Procedure Code).

This ban prevents you from leaving the UAE until your debt is cleared or settled.

Got travel ban after default?

A travel ban isn’t automatic — the bank has to prove the debt and show that it’s serious and due. The court then decides whether to issue the order.

The travel ban stays in effect until the debt is resolved, but it can be lifted if:

• The bank agrees in writing to cancel it.

• You pay or deposit the debt amount with the court.

• You provide a valid bank guarantee or an approved guarantor.

• The bank fails to file or enforce the case within legal timeframes (8 to 30 days).

• Three years have passed with no enforcement action.

• Or if authorities confirm your UAE stay is illegal and you’re due for deportation.

The court may also ask the bank to post a financial guarantee in case the travel ban is later found to be unjustified.

Fix before dues accumulate

If you’re struggling to pay, talk to your bank early. Most banks prefer helping you find a solution rather than going through legal action.

You can request to:

• Restructure your debt into smaller instalments.

• Delay or reduce interest payments.

• Waive penalty fees.

If your situation is serious, you can also consider applying under the UAE Insolvency Law, which lets individuals restructure debts legally without criminal penalties.

The bank isn’t required to approve your request, but showing willingness to cooperate can help prevent escalation.

How court sees defaults

If no agreement is reached, the bank can file a civil case to recover the outstanding amount.

If the court rules against you, the bank can proceed with execution proceedings — this may include asset seizure, salary deductions, or travel bans.

If a security cheque was part of the agreement, the bank can present it as evidence of your obligation.

Key takeaways?

Missing a few payments isn’t a crime, but ignoring your debt can have serious financial and legal consequences in the UAE.

The law is designed to protect both banks and borrowers, but it moves quickly once a case is filed.

To stay safe:

• Keep proof of all payments.

• Check your legal status before travelling.

• Contact your bank early if you’re facing payment issues.

The sooner you act, the more options you’ll have — and the less likely you’ll face legal complications or travel restrictions.