Bounced Rental Cheque: How to deal with it in UAE

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Bounced Rental Cheque How to deal with it in UAE

• HHS Lawyers and Legal Consultants

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• There are considerable benefits to collecting
  payments for rent via cheques rather than cash
  payments. A landlord only needs to consider
  unfortunate instances in which following
  receiving cash for a rental, he or she is
  robbed. 
• Unlike cash, cheques for payment of rentals can
  be secure. However, they may also bounce. The
  easiest way of handling bounced rent cheques is
  following a method that involves the
  identification of the reason for the bounced
  rental cheque. 
• Bounced Rental Cheques in Dubai 
• In Dubai, its long believed bouncing cheques can
  send you to prison.  This is not entirely true as
  it will depend on the reason as to why a cheque
  issued by a renter bounced. 

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• Common reasons why cheques bounce
• Insufficient funds 
• Issuer of cheque had canceled the cheque with the
  bank
• Tenant has closed the bank account upon the
  issuance of the cheque 
• Money is in the bank account, but pending
  transactions took the account balance that is
  below the value of the cheque
• Non-illegal reasons for bounced rental cheques in
  UAE
• Name written on the cheque has been misspelled 
• Signature in the cheque has some irregularities 
• There are parts with the cheque issued by the
  renter that are overwritten

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Criminal Case for Bounced Cheque in UAE 

• The judgment will be prison sentence for a month
  to three years maximum, depending on the bounced
  cheques value. Prison time only comes into
  effect when the value of the cheque is more than
  Dh200,000.
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• Here is a more In-depth look at the consequence
  for being unable to settle debt
• 0 to Dh49,000 fine of Dh2,000 and no prison
  time 
• Dh50,000 to Dh99,000 fine of Dh5,000 and no
  prison time 
• Dh100,000 to Dh200,000 fine of Dh10,000 and no
  prison time 
• More than 200,000 potential prison time 
• Fines dont go to claimant as the fees will be
  payable onto the Dubai government. The government
  wont force the issuer of the cheque in paying
  the bounced cheques value to the claimant with
  the criminal case. As soon as imprisonment or
  fine is issued, the decision of the court will be
  final. 

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Civil Case for Bounced Cheque in UAE For a civil
case, if the Dubai Court will rule against the
tenant, then the issuer of the cheque will be
made to settle the debt within the specified time
frame. The issuer of the cheques assets may also
be frozen or sold off in order to settle the
bounced cheques value.  If you have questions
regarding the matter, talk to our
lawyers regarding bounced cheques
in UAE today!  If you have questions regarding
the matter, talk to our lawyers regarding bounced
cheques in UAE today!  Source Url -
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