Cheque bounce in UAE, how and what are your options…

Cheque bounce in UAE, when banks use it, how it affects you, this post should help you understand your options, if you still have questions click here to book your free slot with an expert.

Most banks and NBFCs in UAE will take a cheque from you when you apply for any facility. This cheque is basically an instrument to secure the loan they give you, if and when you are unable to make the monthly payments it can be used to threaten you. As a consequence of a cheque bounce there will be a travel ban in place too in UAE are, to say the least horrible. All the banks have their own set of rules and processes to follow. While the general direction of the process stays the same across the banks, what changes is  “WHEN” and “HOW” they do it.

For example, the Mashreq bank may present the cheque after 8-12 months of non-payment while SIB may present it in 6 months, or CITI bank will go out of their way to make sure their customer is treated with the utmost respect and the process is followed at every stage of the delinquency. Whereas Dunia Finance may not really care about the treatment of their customer prioritizing the repayment of the loan or credit card.

So although there is a difference in how and when they take steps and initiate the recovery process the fact remains that all the UAE banks will inevitably bounce your cheque and pass on your account to third-party recovery agencies.

How this affects your life.

UAE Collection agencies

The first step the banks will take once you default is to send you emails and messages regarding the default in payment. Next, they will outsource your account to a third-party call center or a collection agency. The quality control and the frequency of these calls vary from bank to bank. The banks and the collection agencies have permission to call your family and friends. But only once in an attempt to get in touch with you. Most third-party recovery agencies abuse these rules in case of a cheque bounce in UAE to intimidate you and pressure you into making some payment.

These collection agencies work on a commission basis and get payments up to 30% of whatever payments you make. Hence they will ask you to make whatever small payments you can. We make sure the banks don’t charge you this additional amount which would otherwise be paid to the agencies, to book your consultation click here.

Security cheque bounce in UAE.

The next step for the banks in an attempt to recover the loan is to bounce the security cheque. A cheque bounce in UAE will result in a travel ban and possibly even a GCC travel ban. A travel ban will be a hindrance to enter and exit the country, to qualify for new jobs or opportunities and you face possible jail time as well. However, if you are already in your home country the cheque bounce in UAE or criminal case or travel ban will not affect you in any way. Although the third party agencies will try to intimidate and scare you implying that there will be a case in your home country as well.

What are your options when the bank has bounced your cheque in UAE?

The first step you should take is to intimate the bank in writing that you are going or anticipate a financial crunch. You always have to make sure you correspond everything in writing with the bank. Also, anything the bank or its subsidiaries promise must reach you in writing on the bank’s letterhead or at least from their official mail ID. This is simply to keep a record and proof of history that you may need in the future.

If you can afford to then pay the overdue and not the minimum amount. The worst thing you could do for yourself  because this simply goes towards your interest and late payment charges. If you are in your home country and the collection agencies are already knocking at your door, you will need to be clear with them that they do not have your permission to come to your house. And you will make the payment if and when you have the funds. As they are working on a commission basis as soon as they realize that you cannot or will not pay they will stop contacting you.

If you are planning to travel back you will need to close the liability we can get you the best possible settlement directly from the bank saving you thousands of dirhams click here to book your slot NOW.