FINANCIAL DIFFICULTY OR HEALTH PROBLEMS ISN'T A LEGAL DEFENCE TO DEBTS OWED IN THE UAE


Corporate, Commercial (Debt Recovery), Legal Draftings & Company Formation Specialist in Nig & UAE. +971568225948


The parties entered into a written agreement on 12 January 2016, entitled ‘LEVIS Personal Loan Application (the “Loan Agreement”). Under the terms of the Loan Agreement, the Claimant approved the sale of a personal loan to the Defendant.

The Claimant claims sums owed to it pursuant to a Lily Cashback Card also availed of by the Defendant.

Pursuant to the Loan Agreement, the Defendant received an amount of AED 150,000, to be repaid in 48 monthly instalments in the amount of AED 3,745 under the product titled the Personal Loan (the “Personal Loan”). The Claimant submits that the total outstanding sum owed to it in relation to this product, and the outstanding sum owed was AED 138,092.05.

On 3 July 2016, the Defendant availed of a top up on the Personal Loan, which was approved in the amount of AED 210,000 (the “Top Up Loan”).

Pursuant to this, the amount of AED 71,907.95 was credited to the Defendant’s account, and the amount of AED 138,092.05 was settled under the Personal Loan. The Claimant submits that the Defendant fell into arrears in relation to the Top Up Loan on 9 February 2019, and that the remaining outstanding amount is AED 101,372.18.

On 11 January 2016, the Defendant received from the Claimant a credit card with a limit of AED 15,000. The Claimant claims that the Defendant fell into arrears and that the outstanding amount owed to the Claimant in relation to this product is AED 19,103.25.

Following the Defendant’s failure to settle the amounts outstanding, the Claimant proceeded to file its claim for the recovery of the sums due and owed to it with the Small Claims Tribunal (the “SCT”).

The Defendant did not file an Acknowledgment of Service, and has only provided submissions in the form of screenshots evidencing payments being made to the Claimant.

At the Hearing, the Defendant did not provide a substantive defence, and submitted that he has been faced with financial difficulty and is unable to pay the amounts owed to the Claimant.

The parties met for a Consultation with SCT Judge Nassir Al Nasser on 19 January 2020 but were unable to reach a settlement.

In its written submissions and in the Hearing, the Claimant relied on the terms of the Agreement which set out the sums owed to it by the Defendant and the dates by which the Defendant was to settle its liabilities to the Claimant.

The Claimant confirmed that it sought repayment of the outstanding amounts of the products it provided to the Defendant, which, as of the hearing date, amounted to AED 121,022.41 It also confirmed that it is seeking post-judgment interest on the sums due, as well as the recovery of the fee paid to the Court for the filing of this Claim, in the amount of AED 6,051.10.

No defence was put forward by the Defendant, who submitted that he had become unemployed and has faced health trouble since availing of the products provided to him by the Claimant, and stated that this loss prevented him from making the payments owed by him under the Agreement.

Based on the evidence before me and in the absence of any substantial defence being put forward by the Defendant in regards to this Claim, I am satisfied that the Agreement between the parties is valid and binding, and that the Claimant is owed a total of AED 121,022.41 being the sum of the Top Up Loan and the Lily Cashback Card.

The Defendant’s financial circumstances, while unfortunate, do not bear any legal standing to his obligations to the Claimant.

The Court ordered that the Defendant shall pay the Claimant the amount of AED 121,022.41 for the sums owed to it as well as the sum of AED 6,051.10 being the Court fee paid by the Claimant to the Court for the filing of this Claim and the Claimant shall also be entitled to post-judgment interest at a rate of 9% per annum pursuant to the DIFC Courts’ Practice Direction No. 4 of 2017.

A creditor is a person or company to whom you owe money. When a creditor sues you, it is the claimant in the case. After there is a judgment saying you owe money, the creditor is also called a judgment creditor.

A debt collector is someone who regularly collects debts owed to others. Collection agencies and collection lawyers are examples of debt collectors. Creditors sometimes sell debts to debt collectors rather than spend time and energy to collect debts. If a debt collector buys your debt, it becomes the creditor.

If you owe someone money, you are a debtor. If you are sued, you are the defendant. After there is a judgment saying you owe money, you are also called the judgment debtor.
A judgment is a court decision. It can be made by a judge, a jury, a magistrate, or Tribunal. A money judgment says a person owes another person or company a set amount of money rather than property or services.

It is advisable that:You always respond to court summons, whether you are guilty of the matter of not. Not answering equals to selling off your right to a defence to the claims.
When you respond to a court case by filing an Answer, you may have defenses you can tell the court about. If you don’t tell the court about your Legal defenses in your Answer, you can’t bring them up later.

List and explain each of your Legal defenses in your Answer to the Complaint, after you have responded to all of the paragraphs in the complaint. You need to put your defenses under a separate heading, like “Defenses,” and include any facts to support them.

For each defense you have, you need to include statement of facts and always hinge on legal defences and not defences which are emotions and sentiments. The court or tribunal do not look into such.

If you raise any defenses, be prepared to talk about them in court. When you’re defending a case in court, you may want to have a lawyer. A lawyer can always help you raise defenses to debt collection

Published by:
Joseph Titilope
Corporate, Commercial (Debt Recovery), Legal Draftings & Company Formation Specialist in Nig & UAE. +971568225948 trustedhands18@gmail.com

akogun2012:
FINANCIAL DIFFICULTY OR HEALTH PROBLEMS ISN'T A LEGAL DEFENCE TO DEBTS OWED IN THE UAE


Corporate, Commercial (Debt Recovery), Legal Draftings & Company Formation Specialist in Nig & UAE. +971568225948


The parties entered into a written agreement on 12 January 2016, entitled ‘LEVIS Personal Loan Application (the “Loan Agreement”). Under the terms of the Loan Agreement, the Claimant approved the sale of a personal loan to the Defendant.

The Claimant claims sums owed to it pursuant to a Lily Cashback Card also availed of by the Defendant.

Pursuant to the Loan Agreement, the Defendant received an amount of AED 150,000, to be repaid in 48 monthly instalments in the amount of AED 3,745 under the product titled the Personal Loan (the “Personal Loan”). The Claimant submits that the total outstanding sum owed to it in relation to this product, and the outstanding sum owed was AED 138,092.05.

On 3 July 2016, the Defendant availed of a top up on the Personal Loan, which was approved in the amount of AED 210,000 (the “Top Up Loan”).

Pursuant to this, the amount of AED 71,907.95 was credited to the Defendant’s account, and the amount of AED 138,092.05 was settled under the Personal Loan. The Claimant submits that the Defendant fell into arrears in relation to the Top Up Loan on 9 February 2019, and that the remaining outstanding amount is AED 101,372.18.

On 11 January 2016, the Defendant received from the Claimant a credit card with a limit of AED 15,000. The Claimant claims that the Defendant fell into arrears and that the outstanding amount owed to the Claimant in relation to this product is AED 19,103.25.

Following the Defendant’s failure to settle the amounts outstanding, the Claimant proceeded to file its claim for the recovery of the sums due and owed to it with the Small Claims Tribunal (the “SCT”).

The Defendant did not file an Acknowledgment of Service, and has only provided submissions in the form of screenshots evidencing payments being made to the Claimant.

At the Hearing, the Defendant did not provide a substantive defence, and submitted that he has been faced with financial difficulty and is unable to pay the amounts owed to the Claimant.

The parties met for a Consultation with SCT Judge Nassir Al Nasser on 19 January 2020 but were unable to reach a settlement.

In its written submissions and in the Hearing, the Claimant relied on the terms of the Agreement which set out the sums owed to it by the Defendant and the dates by which the Defendant was to settle its liabilities to the Claimant.

The Claimant confirmed that it sought repayment of the outstanding amounts of the products it provided to the Defendant, which, as of the hearing date, amounted to AED 121,022.41 It also confirmed that it is seeking post-judgment interest on the sums due, as well as the recovery of the fee paid to the Court for the filing of this Claim, in the amount of AED 6,051.10.

No defence was put forward by the Defendant, who submitted that he had become unemployed and has faced health trouble since availing of the products provided to him by the Claimant, and stated that this loss prevented him from making the payments owed by him under the Agreement.

Based on the evidence before me and in the absence of any substantial defence being put forward by the Defendant in regards to this Claim, I am satisfied that the Agreement between the parties is valid and binding, and that the Claimant is owed a total of AED 121,022.41 being the sum of the Top Up Loan and the Lily Cashback Card.

The Defendant’s financial circumstances, while unfortunate, do not bear any legal standing to his obligations to the Claimant.

The Court ordered that the Defendant shall pay the Claimant the amount of AED 121,022.41 for the sums owed to it as well as the sum of AED 6,051.10 being the Court fee paid by the Claimant to the Court for the filing of this Claim and the Claimant shall also be entitled to post-judgment interest at a rate of 9% per annum pursuant to the DIFC Courts’ Practice Direction No. 4 of 2017.

A creditor is a person or company to whom you owe money. When a creditor sues you, it is the claimant in the case. After there is a judgment saying you owe money, the creditor is also called a judgment creditor.

A debt collector is someone who regularly collects debts owed to others. Collection agencies and collection lawyers are examples of debt collectors. Creditors sometimes sell debts to debt collectors rather than spend time and energy to collect debts. If a debt collector buys your debt, it becomes the creditor.

If you owe someone money, you are a debtor. If you are sued, you are the defendant. After there is a judgment saying you owe money, you are also called the judgment debtor.
A judgment is a court decision. It can be made by a judge, a jury, a magistrate, or Tribunal. A money judgment says a person owes another person or company a set amount of money rather than property or services.

It is advisable that:You always respond to court summons, whether you are guilty of the matter of not. Not answering equals to selling off your right to a defence to the claims.
When you respond to a court case by filing an Answer, you may have defenses you can tell the court about. If you don’t tell the court about your Legal defenses in your Answer, you can’t bring them up later.

List and explain each of your Legal defenses in your Answer to the Complaint, after you have responded to all of the paragraphs in the complaint. You need to put your defenses under a separate heading, like “Defenses,” and include any facts to support them.

For each defense you have, you need to include statement of facts and always hinge on legal defences and not defences which are emotions and sentiments. The court or tribunal do not look into such.

If you raise any defenses, be prepared to talk about them in court. When you’re defending a case in court, you may want to have a lawyer. A lawyer can always help you raise defenses to debt collection

Published by:
Joseph Titilope
Corporate, Commercial (Debt Recovery), Legal Draftings & Company Formation Specialist in Nig & UAE. +971568225948 trustedhands18@gmail.com

Are you currently in Nigeria or The UAE?

NairalandAngel:


Are you currently in Nigeria or The UAE?

Dubai, UAE.