What to Do When Money Is Owed by a Friend in Dubai or the UAE

Lending money to friends can seem like a kind act when they face a financial problem. However, when that friend disappears without repaying the loan, it can cause a significant rift in the relationship. Unfortunately, this scenario is all too common.

According to a survey conducted by payment service Paym, over 1 million people in the UAE admit to having fallen out with friends or family due to money.

If you find yourself in this situation, where you’ve repeatedly asked for the money back and been left out of pocket, it can be challenging to know how to get the money back from someone who borrowed it.

Money Is Owed by a Friend
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file a civil lawsuit in court

Does Your Friend Actually Have the Money to Repay You?

Before taking legal action, consider whether your friend can repay the debt. If they have no cash or assets, going to court may not be worth the cost. But if they have income, property, or other assets, you may be able to recover the debt through a court-obtained County Court Judgment.

How to Recover Borrowed Money from a Friend?

To recover the loan from a friend, present the evidence of the loan, assert the expectation of repayment and indicate readiness to take necessary steps if needed. This might encourage your friend to act on the repayment of the debt. If he does not pay back your money, you can take the following steps to ask for the amount:

  1. Write a formal letter to your friend requesting the return of the loaned amount, citing their failure to repay as the reason. Your letter should include the following:
  2. A specific deadline for repayment, at least seven days in advance
  3. Inform your friend that if they fail to repay within this timeframe, you will take legal action
  4. A summary of the debt including the amount, date it was given as well as the date it was supposed to be repaid.

Make sure to keep a copy of the letter for your records, and send the original via mail to their current residence or home address.

  • If your friend fails to respond or refuses to acknowledge the letter, consider hiring a lawyer to send a legal notice in order to resolve the issue and recover the loaned money as soon as possible.
  • If the previous steps have been unsuccessful, you may file a civil lawsuit against your friend in the UAE court to recover the remaining loan amount.

Taking Your Friend to Court ​for Failing to Return Your Money

You can take your friend to court if they have refused to pay you back the money they borrowed from you. Before going to court, it’s important to consider if you have a strong case for getting your money back from your friend.

To have a good chance of success, you’ll need proof that you loaned the money to your friend in the first place and that they have not paid you back yet.

The best evidence is a written contract, loan agreement, or IOU, but there are other ways to prove the loan. You can use a verbal contract that both of you agreed upon. You should present the following to the court:

  • Social media messages, text messages, or emails discussing the debt or loan
  • Bank statements showing the transfer of money from your account to your friend’s account
  • Any evidence of repayments made, and then stopped.
  • Lastly, it will be helpful if someone else was present when the loan was agreed, who could be a witness and ready to give a statement.
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present the evidence of the loan

Final Thoughts!

When taking legal action against a friend for unpaid loans, it’s essential to consider the potential financial impact on them and their loved ones. However, if you’ve lent the money in good faith, you should not feel guilty about pursuing repayment.

It’s important to remember that if your friendship is damaged, it is due to your friend’s decision to default on the loan and stop communicating with you. Ultimately, the decision to move forward with legal action is yours.

This article or content does not, in any way, constitute legal advice and is not intended to replace legal counsel. You may visit us for a legal consultation, Kindly email us at legal@lawyersuae.com or call us +971506531334 +971558018669 (A consultation fee may apply)

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