# Change in bounced cheque treatment....



## saraswat (Apr 28, 2012)

So apparently, via a number of sources, security cheque's cannot be used to open criminal proceedings anymore.. 

Security cheques cannot be used to arrest defaulters | GulfNews.com

No criminal case for bounced security cheques in UAE courts: report - Emirates 24/7

But, upon further reading, it is important to note that the change is for 'security cheques' and not one's written out for fixed term payments.. quote: _"Bu Asseeba stressed that this ruling only covers security or collateral cheques for the total amount of a loan, commodity or job which lenders require borrowers or contractors ask clients to sign and that other cheques submitted towards fixed-term payments can still be used to file a criminal case if they are dishonoured."_

Also, there isn't a pardon/waiver on the loan for the defaulter:

Reports about waiver of expatriates debts are baseless | GulfNews.com

It seems as though there is some positive development coming out in the new year ...


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## Elphaba (Jan 24, 2008)

It's still not 100% clear, but the wording is only regarding security cheques, not ones written written for any other reason or rent cheques.

It's a step in the right direction, but it doesn't mean people who bounce cheques won't end up in jail. The banks can always take other action against debtors.

I'll be writing about this properly in the next few days (so will post here) but I am awaiting comment from several banks first.


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## rsinner (Feb 3, 2009)

In any case, it will stop the practice of banks getting your sign on dummy cheques or undated cheques to give you a credit card etc.


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## saya123 (Dec 11, 2008)

As usual, another clarification on the very next day of initial announcement:

Bounced cheques remain a criminal offence | GulfNews.com


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## rsinner (Feb 3, 2009)

saya123 said:


> As usual, another clarification on the very next day of initial announcement:
> 
> Bounced cheques remain a criminal offence | GulfNews.com


Yeah. Nothing changes here. 
It is the same for labour laws or whatever else we would consider improvements - announcements are made and then "clarifications" issued. This place will never improve - will just keep getting worse.


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## md000 (Dec 16, 2008)

Another clarification: Decision to de-criminilise bounced security cheques to benefit only Emiratis - Emirates 24/7

Only Emiratis benefit from this change. Expats. Sorry.

-md000/Mike


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## saraswat (Apr 28, 2012)

Ahh.. yes .. it did sound too good to be true... maybe there's a glimmer of hope out there though ... 

(i'm gonna stay the prototypical optimist  )


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## Elphaba (Jan 24, 2008)

No changes for expats.

A summary: News: Bad Cheques are still Bad News | Financialuae's Blog


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