Unpaid loan or credit card in Oman

How does an unpaid loan or credit card  in Oman effects you?

Similar to the rest or GCC an unpaid liability in Oman can have life changing effects on your life. Here are 5 steps the banks will take against you if you have failed to payback.

Cheque bounce case in Oman.

The banks as part of their process will deposit your security cheque.  Every bank has a different waiting time before they do this.

According to the fact recognized by the courts in the Sultanate of Oman, a cheque is a commercial paper, consisting of an order, which the drawer gives to his bank, in order to pay the beneficiary, an explicit sum of money at a precise date.

It would be an offense on the part of the drawer if he issues a cheque to the beneficiary, with deficient funds, on the due date. It depends on their rules and internal policies.

 Criminal case in Oman.

An unpaid loan in Oman will amount to a criminal offense in Oman. Similar to other countries in the GCC. The major difference is the punishment as mentioned below. 

By law a cheque bounce is a criminal offense in Oman. As a result of the cheque bounce the banks will move on  to filling a criminal case in Oman.

 According to laws in Oman (Article 356, 357 ibid) if the drawer is found guilty they may be looking at a jail term or fine or both. The jail term can vary in between 1 month to 1 year. While the fine can range between 500 OMR to 1000 OMR

  As of SEP 2022 cheque bounce cases continue to be at the top of the list as most committed crime.

Travel ban or immigration ban in Oman.

In addition the banks will also request for a travel ban. This is to prevent any defaulter either intentional or unintentional from leaving or entering the country. Many times people who do not have any ill intentions are also caught because of these laws. 

Although in most cases this law is counter productive, this is the sad reality. The judiciary and basic law of the state intends to safeguard the financial interests of investors and business community through state legislation. 

A travel ban or immigration ban would mean that you cannot enter or exit Oman. This also implies for people on transit or connecting flights through Oman.

Civil case in Oman.

In some cases mostly of high value the banks may decide to proceed with a civil case. This is much more complicated than a criminal case and the banks have to fulfill certain prerequisites (Article 557 of Royal Decree 55/90). 

The banks will hand pick these accounts on which they want to file civil cases because it takes time and money for them to file a civil case.

GCC wide travel ban.

An unpaid liability (unpaid credit card ot loan)  in Oman can also lead to a GCC wide travel ban. What it simply means is that you are banned from traveling into any GCC country because of the liability that you have with the specific bank or NBFC in Oman. it is a type of travel ban that will not allow you to work in any other country in the GCC. If you would like to check your travel/ immigration ban or any pending cases in UAE please click here.

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