Question: I have an account with a buy-now-pay-later (BNPL) company. I let my friend use my account and she spent more than Dh5,000 ($1,361). I trusted her but she has left the country and returned home without paying back the money. She said she will pay me some money each month but I am still waiting after four months.
The company has been calling me for payment and have said they will file a case against me if I don’t pay. I offered to pay Dh100 a month but they refused.
Will I be responsible for my friend not paying? Can they take action against me and demand full payment in one go? Will I get a travel ban? MB, Dubai
Answer: There are number of BNPL companies that operate in the UAE but they should be used with caution. It is too easy for people to spend in the hope they can repay the money but non-payment is a serious issue. It will also incur fees.
Generally, the money spent should be repaid in four equal monthly instalments. Failure to repay as agreed when accepting the terms when opening the account will not only incur a charge but will also affect a credit score. Ability to use the account is suspended.
The terms of these arrangements all state that the individual in whose name the account is registered is fully responsible for all activity in the account. They also state that details should not be shared with any other person.
MB has broken the terms of the agreement by not repaying the money in the agreed timeframe and sharing the details and access with another person.
Breaching the terms in this way means that the company can legally demand immediate full repayment. The company is under no obligation to offer payment by instalment when someone has broken the terms they agreed to.
If the money is not repaid, the company has the option to register a police case for debt against MB. This is likely to include a travel ban to prevent her from leaving without repaying the money owed.
It is doubtful the company will be particularly amendable but MB has a better chance of being given time to pay if she can made a substantial initial payment to demonstrate willingness, as she will not be let off this debt.
Anyone entering into any credit agreement, whether for a deferred payment scheme, a loan or a credit card, should take the time to properly read the terms and conditions. All too often people just click yes and don’t bother reading the terms, although I would like companies to make the details clearer at time of application.
No one should allow another person to use their credit or debit or any payment account as this is prohibited for all arrangements.
Q: I have been working for a company for nearly four years and have told my manager that I plan to resign when this contract ends. I want to return to my country and my family.
When I told my manger he warned me that I will have to pay a penalty if I leave as they will ask me to pay back my visa costs if I leave before working for five years. Apparently, the company always does this.
A friend told me that the company can add additional terms to contracts but I have not seen this before. Where do I stand legally? DF, Jeddah, Saudi Arabia
A: It is clear that an individual labour contract cannot override the terms of the government approved and authenticated contract in Qiwa, the official system. A contract cannot provide lesser benefits, or conflict with mandatory Saudi labour law.
An employer can only add or alter clauses in the Qiwa contract if they are more beneficial to the employee than the standard provisions.
Article 40.1 of the official Saudi Arabian employment law states: “An employer shall bear the fees pertaining to the recruitment of non-Saudi workers, the fees for issuing and renewing residence permit (Iqama) and work permit, and the fines resulting from their delay, as well as the fees pertaining to change of profession, exit and re-entry visas …”
It is clear that all visa costs are the responsibility of the employer and they should not be passed on to the employee, even if someone chooses to leave service.
The authenticated employment contract came into effect in Saudi Arabia towards the end of 2025 and this provides higher protections in law for all employees. All contracts are registered on the Qiwa portal (run by the Ministry of Human Resources and Social Development) and also the Najiz platform (operated by the Ministry of Justice).
This provides stronger oversight of employer obligations, including the payment of wages, so employers will need to explain any deductions, such as illegally reclaiming visa costs.
Contact Keren Bobker at keren@holbornassets.com or at www.financialuae.com
The advice provided in our columns does not constitute legal advice and is provided for information only
