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How to clear a cheque bounce case in Dubai UAE

How to clear a cheque bounce case in Dubai UAE?

Not many people know about this but if you are facing a cheque bounce case in Dubai, there is a way to get out of it and fix your debts with the creditor. It may sound too good to be true but you might be able to walk free from the situation. Maybe it’s not as big of a challenge as you thought. But most of the cases are being taken very seriously and can result in serious legal consequences, including fines, imprisonment, and a criminal record. Here are some steps you can take to clear a cheque bounce case in Dubai before that you need to know what is the cheque Bounce law in UAE.

Resolving steps for cheque bounce case in Dubai:

Contact the bank: If your cheque has bounced, the first step is to contact your bank and ask them for details about the bounced cheque. You can also ask them if they can provide you with a letter stating that you are working to resolve the issue.

Contact the beneficiary: If the cheque was issued to a particular beneficiary, contact them and try to resolve the matter amicably. You may be able to reach a settlement that both parties can agree on.

Attend court hearings: If the beneficiary has filed a case against you, it is essential to attend all court hearings. Failure to attend court hearings can result in a judgment being passed in your absence, which can be even more damaging.

Pay the outstanding amount: If you owe the beneficiary money, it is important to pay the outstanding amount as soon as possible. If you cannot pay the full amount at once, you may be able to reach an agreement to pay in installments.

Seek legal assistance: If you are unsure about the legal process, it is recommended to seek legal assistance from a qualified lawyer who has experience in dealing with cheque bounce cases in Dubai. Legal house expert consultants in Dubai can help you in advising the solution to clear the case.

Request a settlement: You can also request a settlement with the beneficiary, which may allow you to avoid a criminal record. This may involve paying a fine and making an agreement with the beneficiary to clear the debt.

Is it true that cheque bounce in UAE is no longer a criminal offense?

Yes, It is true, in line with the revised regulations on Commercial Transactions, dishonored cheques are no longer considered a criminal offense in the UAE. The implementation of Federal Decree-Law No. 14 of 2020 means that the act of issuing a cheque with insufficient funds will not result in a criminal proceeding. Rather, the cheque holder is entitled to seek partial or full recovery of the funds through an execution process as stipulated in Article 635.

Under the new legislation, a person may face criminal charges, including imprisonment ranging from 6 months to 2 years, and fines if found guilty of:

1. Instructing or requesting the drawee to not honor the cheque before its due date.
2. Closing the account or withdrawing all funds before issuing the cheque.
3. Intentionally writing or signing a cheque to prevent payment.
4. Knowingly using a fraudulent or counterfeit cheque.

What actually the cheque bounce law in UAE states before the new update?

In the UAE, issuing a bounced cheque is considered a criminal offense and is governed by the UAE Penal Code. Under Federal Law No. (3) of the 1987 Penal Code, issuing a bounced cheque can result in a fine and imprisonment for up to three years. A cheque is considered bounced when it is presented to the bank, and there are insufficient funds in the account to honor the payment. It is also considered a bounced cheque if the cheque is written without the required signature, if it is post-dated, or if it is issued on a closed account. If a cheque bounces in the UAE, the beneficiary has the right to file a complaint with the police. The police will then investigate the matter and refer the case to the Public Prosecution if they find evidence of a crime. The Public Prosecution may then initiate legal proceedings against the person who issued the bounced cheque, and the case will be heard in court. If the person is found guilty, they may be fined and/or sentenced to imprisonment.

How Legal House consultants help you:

As the preferred legal consultancy in Dubai, We can provide professional assistance for bounced cheques in the UAE by advising on the legal options available, the steps to be taken, and the potential consequences of the cheque bounce. We can also provide representation in court, negotiate with the beneficiary, and help reach a settlement, if possible. and assist you with the preparation of legal documents, such as a power of attorney, to ensure that the case is handled efficiently. Feel free to contact us for free legal advice.

What is the cheque bounce case procedure in Sharjah?

The procedure for a cheque bounce case in Sharjah typically involves filing a complaint with the police, who will then refer the case to the Public Prosecution. The Public Prosecution may then initiate legal proceedings against the person who issued the bounced cheque, and the case will be heard in court.

What are the consequences of a cheque bounce in UAE?

Cheque bounce is considered a serious offense in the UAE and can lead to significant legal consequences, including criminal charges, legal proceedings, fines and imprisonment, backlisting, and damage the reputation. Which all leads to difficulty for you to do business in UAE.

What happens in credit card cheque bounce cases in Dubai?

If a credit card cheque bounces in Dubai, the bank or financial institution may file a case against you. This can result in legal consequences, fines, and damage to your credit history.

What is a dishonored cheque?

A dishonored cheque is a cheque that is returned by the bank unpaid due to insufficient funds or other reasons such as missing details, incorrect date, cash digits, or fake signature, and the bank might get prior instruction from the issuers.

How much is the cheque bounce penalty in Dubai UAE?

In the UAE, if you get a bad cheque, you can now appeal directly to the judge. The old procedure has been streamlined. And since most instances are now decriminalized, police intervention is no longer required. The fines or penalties depend on the amount written on the bounced cheque. if the amount is less than 50k AED, then you may get a 2k AEd fine. otherwise, it will be more.

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