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UAE Judiciary signs agreement with bank to freeze accounts over rent defaults in only 2 days

Most people in the UAE, live month to month and have little savings. Their bank accounts can easily be frozen if for example, their employer is late paying, if they are made redundant or simply encounter unexpected real world troubles, such as hospital bills, injury or illness.

There is no differentiation between “won´t pay rent” and “can´t pay rent”. If they can not afford to pay the rent or their cheques bounce, why not freeze what little they have left in their accounts for food.

Of course, it is unacceptable to voluntarily default on rent payments on a contract entered by both parties in good faith, but there needs to be some sort of differentiation between those who choose not to pay, and those who have suffered unexpectedly.

Freezing a bank account, perhaps one´s only source of funds, could be seen as a human rights violation, if that person was no longer able to pay for food and supplies. Given that this is a possibility, it is wise indeed to always have cash set aside. Bank accounts can be frozen at any time, sometimes without warning.