What happens if a cheque bounces in UAE
Recently there has been a lot of confusion regarding the consequences of a cheque bounce in UAE. This article will help you to get some clarity on What happens if a cheque bounces in UAE.
Before the amendment to Federal Law in 2021 the bearer would approach the police. After the amendment a bounced cheque is considered as an execution deed and that the cheque bearer may request the mandatory execution for the payment, in whole or in part.
As a result, under the provisions of the new law, the cheque bearer can use the bounced cheque as an execution deed, as long as it can be proved that the cheque bounced because of insufficient funds. The bearer can proceed directly to the execution court to file for an execution case for the payment of the cheque amount.
If you have a pending liability with any bank that may have bounced your security cheque you can book your consultation by clicking below.
How does this change in law affect you?
A cheque bounce case previously would be the responsibility of the police station. This would overburden them, and leave a lot of cases unresolved. As a result of the amendment a cheque bounce case can be directly registered with the court. The courts will then pass a decree on the same. The travel ban and immigration ban can be implemented as a result of this.
What other action can be taken against you after your cheque is bounces in UAE?
A PLE execution is another tool that can be used by the bankto get their money back. This will allow the creditor to garnish your wages, as well as attached your assets in the UAE.
What happens if a cheque bounces in UAE, and you are in your home country?
If you are in your home country already then there is nothing that the banks in UAE can do legally. Similarly. any other bank in the GCC will not be able to take any legal action against you in the your home country.
The only time when the banks are able to take any legal action in your home country is when the amounts are in 10’s of Millions. In such cases the courts will involve the interpole & CIDs of other countries.
Only in such cases can they attach your assets in your home country. Besides this there can be a travel ban also known as immigration ban or visa ban against you. We can help you check this, simply click below to book the service.
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