# Dubai Check Law!



## pjones (May 4, 2012)

In this thread we will discuss everything you ever wanted to know about the Check / Cheque Law in Dubai, such as:

- What is the Dubai Check Law ?
- How is the Dubai Check law Applied ?
- What are the Dangers of issuing checks in Dubai ?
- What happens when your Check bounces in Dubai ?
- What should you do when your Check bounces ?
- How do you avoid going to Jail if your Check bounces ?

Hopefully, this THREAD will save the lives of MANY residents living in Dubai, considering nearly EVERY resident has issued a check in Dubai (School, House Rent, Loans, Credit Cards, Business Transaction, etc..) and therefore has a VERY HIGH chance of going to Jail!


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## Pirelli (May 4, 2012)

pjones said:


> In this thread we will discuss everything you ever wanted to know about the Check / Cheque Law in Dubai, such as:
> 
> - What is the Dubai Check Law ?
> - How is the Dubai Check law Applied ?
> ...


Well basically if you write a cheque knowing that you don't have money in the account at the time of writing the cheque you've committed a crime. I know that everyone asks for security cheques and post dated cheques , but unfortunately this is very dangerous. You are effectively signing that you authorize the authorities to put you in jail no matter what happens with the cheque. The courts do not apply the cheque law correctly. they assume that EVERY BOUNCED Cheque =cheque fraud. Please see you tube video HUNGER STRIKE DUBAI JAIL


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## adrianh (Sep 20, 2008)

Whilst I agree people should be fully aware of the consequences and that there should be a mechanism in place if there is genuine mitigation. 

But the law is clear. The video you mention displays quite clearly why the law is there, these people where carrying out business transactions for which they had no funds. They where simply buying property and concluding business deals and buying time using PD cheques. A fatally flawed business model.

These type of people are who give UAE a bad reputation and my personal view it is not correct. If you know the rules and then break them you cannot complain when the rules are implemented


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## Pirelli (May 4, 2012)

adrianh said:


> Whilst I agree people should be fully aware of the consequences and that there should be a mechanism in place if there is genuine mitigation.
> 
> But the law is clear. The video you mention displays quite clearly why the law is there, these people where carrying out business transactions for which they had no funds. They where simply buying property and concluding business deals and buying time using PD cheques. A fatally flawed business model.
> 
> These type of people are who give UAE a bad reputation and my personal view it is not correct. If you know the rules and then break them you cannot complain when the rules are implemented




Wouln't you say that its banks that give Dubai a bad name...because when taking a mortgage or loan this is exactly what ordinary people have to do, issue post dated security cheques ;borrowing money they don't have so when things go wrong I suppose you think they should also be jailed. I had friends who took mortages and they left Dubai knowing that if they didn't the authorities would just jail them.they definately wanted to stay and work things out but the system doesn''t allow for it.

The message being sent out is that in Dubai debtors prisons that have long ben abolishe are supported. I've watched the little girls video and I think she explains it very clearly. The law requires there to be criminal intent before a person is imprisoned.

I got a twitter of the Emirati man today who rather than jail got a 30,000 aed fine for his bounced cheques worth a staggering 122 million dirhams. If the law can be applied correctly for this Emirati case in the gulf news today than why don't expats get the same fair sentencing. Why are expats languishing in jail? This is all very worrying.:confused2:


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## pjones (May 4, 2012)

Adrianh, I have followed the case of Safi Qurashi very closely. He has a court audit report which clearly shows that he owes no money to the complainant as the transaction was complete. 

In his case when the transaction was complete and he made full payment the purpose of the security cheque is nullified and therefore should be returned to the owner. But was it returned? NO. Insted it was banked and Mr Qurashi went from victim to criminal! Who's giving Dubai a bad name?

The cheque law as it is interpreted today is FULLY open to abuse, bribery and extortion. Banks in Dubai are also abusing the system as they have ultimate power over the borrower for the FULL amount of the loan in the shape of so-called 'security cheques'. 

Actually they are the biggest 'insecurity cheques' on the face of this earth. 

Why has the cheque law become a 'pick n mix' legal system where the requirement of the court to prove 'criminal intent' in every bounce cheque case is deliberately ignored?

The law is not at fault, the way it's misinterpreted and wrongly applied in court is the real issue!


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## Sharondavis (May 8, 2012)

Hi I've been shopping around for a mortgage but ive been reading up on the horror stories related to people have been accused of bouncing checks and also on the hunger strikers in dubai. Im not sure what I should do. Can someone please advise am I breaking the law if I write a security cheque to a bank for my mortgage amount knowing i don't have the money?


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## pjones (May 4, 2012)

FACT: There is no such thing as a 'Security Cheque' as a cheque is a cheque

FACT: A Cheque is percieved as a bankers draft and therefore equivalent to cash negating the false concept of 'Security Cheque'

FACT: To fully mitigate the risk of a Jail sentence requires you to have the AMOUNT (written on the so-called security cheque) to be always available in your bank account until the cheque is encashed or returned!

FACT: The moment you issue a cheque without the funds being available in your account you have committed a crime. I.e when you issue a security cheque to a bank to obtain a Credit Card, Loan, etc.. you have commited a crime (facilitated by the bank) unless you have the funds available in your bank account at that moment.

FACT: According to the law the court is required to prove 'criminal intent' before passing a judgement for a bounce cheque case. This does not happen for expats and foriegners who are assumed guilty the moment a cheque bounces for whatever reason

FACT: It is very dificult to do business and live without issuing cheques (school fees, rent, mortgage, car loan, credit cards, cash loans, etc.. all require a so-called security cheque.

FACT: A Cheque book of 25 pages carries a potential jail sentence of 75 Years in Jail (upto 3 years per cheque) according to the application of the current legal system!


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## pjones (May 4, 2012)

Dear Sharondavis,

Have you any experience of life in jail? Sorry to say, but unless you want to find out, I would stay 100% away from taking a mortgage in Dubai.

The moment you issue that security cheque you have committed a crime, period !!

I know I have narrowed down your mortgage search to 'nothing' but instead saved you a potential jail sentence in the process!


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## pjones (May 4, 2012)

QUESTION:

According to UAE Law 'Criminal intent' must be proven in a bounce cheque case.

In the case of Safi Qurashi, where was the 'criminal intent' ESPECIALLY since his court audit report states that he does not even owe the complainant any money!

WHY is he in jail?


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## Toon (Feb 28, 2012)

pjones.

Funny you should join purely to discuss this subject. Can I suggest you take a look at www.detainedindubai.org?

Now whilst I don't disagree with the case of Safi (A very good friend of mine was his Sales Director), do you think this is the place to vent your spleen?

It's rubbish too to say that criminal intent must be proved, we all know this isn't the UK.

Live by the sword, die by the sword.


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## Toon (Feb 28, 2012)

pjones said:


> Hopefully, this THREAD will save the lives of MANY residents living in Dubai, considering nearly EVERY resident has issued a check in Dubai (School, House Rent, Loans, Credit Cards, Business Transaction, etc..) and* therefore has a VERY HIGH chance of going to Jail*!


Not at all, why would you hand over a cheque to a school/house rent etc. if you couldn't cover it.

And why would you get a loan or credit card if you couldn't pay it back.

Live outside your means by all means, just make sure you have the wherewithal to extricate yourself from the situation if you need to.


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