By Question: We had a family staycation in Dubai over Eid Al Fitr. At check-in, the receptionist said I could use my debit card for the security deposit, which would be refunded within three working days. I paid Dh1,000, but it’s been over two months and I haven’t received the refund. Despite reaching out to the hotel several times, they keep making excuses for the delay. What should I do now?
Answer: It’s frustrating to deal with delayed refunds, especially when you’ve been promised a quick return of your security deposit. Here’s a comprehensive guide on what steps you can take to claim your security deposit paid at hotels in Dubai.
Understanding Your Rights
In the UAE, hotels often require a security deposit at check-in, and the terms and conditions regarding this deposit are typically outlined during the booking process. These terms form a contractual agreement between you and the hotel, governed by the UAE Civil Transactions Law. Let’s delve into the relevant provisions:
Article 141 of Federal Law No. 5 of 1985 on Civil Transactions Law:
“A contract is formed through the mutual agreement of the parties on essential obligations and any other legitimate conditions they deem necessary. If certain details are left to be agreed upon later, and this does not prevent the contract’s formation, any disputes over these details shall be resolved by the judge according to the transaction’s nature and legal provisions.”
This means that the agreement you made with the hotel, including the refundable nature of the security deposit, is legally binding. Both parties are expected to honor their obligations under the contract.
Article 246(1) of the UAE Civil Transactions Law:
“Contracts shall be performed according to their terms and in accordance with the principles of good faith.”
This provision emphasizes that contracts should be executed as agreed and in good faith. The hotel, therefore, is obligated to refund your deposit as per the terms stated at check-in.
Article 272 of the UAE Civil Transactions Law:
“In bilateral contracts, if one party fails to fulfill their obligations, the other party may, after serving a formal notice, demand performance or rescind the contract. The judge may order immediate performance, grant an extension, or rescind the contract with damages if warranted.”
This article allows you to take action if the hotel fails to return your deposit. Here are the steps you can take:
Steps to Claim Your Security Deposit
1. Collect Evidence:
Ensure you have all relevant documentation, including the receipt acknowledging the refundable nature of the deposit and any correspondence with the hotel.
2. Issue a Formal Notice:
Send a formal notice to the hotel demanding the immediate return of your deposit. This notice serves as an official request for them to fulfill their contractual obligation.
3. File a Complaint:
If the hotel does not respond or continues to delay, you can file a complaint with the Dubai Department of Economy and Tourism. This body oversees consumer rights and can mediate between you and the hotel.
4. Seek Legal Action:
If the issue remains unresolved, consider taking legal action. You may approach the Dubai Court and initiate civil proceedings. The process typically starts with the Centre for Amicable Settlement of Disputes, especially since your claim amount is below Dh500,000. This step involves mediation to try to resolve the dispute amicably before proceeding to court.
5. Consult a Legal Expert:
For personalized advice and to navigate the legal process effectively, consider consulting a legal expert who specializes in UAE consumer law.
Conclusion
Dealing with delayed security deposit refunds can be challenging, but understanding your legal rights and following the proper procedures can help you reclaim your money. Remember to act promptly and maintain clear records of all communications with the hotel. By following these steps, you can ensure that your rights are protected and that you receive the refund you are entitled to.
