Bounced cheques are a headache no one wants to deal with. In Dubai, cheque bounce cases can lead to legal consequences, including fines or even imprisonment.
This blog will walk you through the steps to file a complaint and recover your money.
Stick around; it’s simpler than you think!
Key Takeaways
- Filing starts with a police report. Bring your Emirates ID, the bounced cheque, and a bank return memo. You can file in person or use the Dubai Police app.
- Legal action must begin within two years of the cheque’s presentation deadline or up to five years for criminal cases. Delays may lead to case rejection.
- Fines vary by amount: AED 2,000 for cheques below AED 50,000; AED 5,000 for amounts up to AED 100,000; and up to AED 10,000 for cheques worth AED 200,000+.
- Payment orders can be issued in as little as 15 days if there are no objections under UAE laws updated on January 2, 2022.
- Repeated offenses harm credit scores through records shared with Al Etihad Credit Bureau (AECB), affecting loans or financial aid chances later.
Steps to File a Cheque Bounce Complaint in Dubai Courts
Filing a cheque bounce complaint in Dubai involves specific steps. Each step is vital to protect your rights and recover the owed money.
Obtain a dishonored cheque statement from the bank
The bank must issue a return memo for any bounced check. This memo explains the reason behind the dishonored cheque, such as insufficient funds or account closure.
It also includes details about why a partial payment might not have been made.
Please request that your bank provide this statement promptly upon receiving your returned check. You will need both the original bad check and this return memo for legal action in Dubai’s courts.
Without these documents, filing a police complaint becomes difficult.
File a police report for the bounced cheque
Visit a Dubai police station to file the report. Bring your Emirates ID, the bounced cheque, and a return memo from the bank. The incident must have happened in Dubai for it to qualify.
Filing is free, saving you extra costs. You can also use the Dubai Police app or their website as an alternative to visiting in person. After submitting, you will get a transaction number and a receipt by email.
Criminal cases may follow if fraud is involved, with fines ranging from AED 20,000 to AED 100,000.
Collect required documents for filing the case
Please ensure all necessary paperwork is collected to prevent any delays.
For individuals, obtain a clear image of the bounced check, a copy of your Emirates ID, and a written bank notice stating ‘insufficient funds.’
Companies must prepare more documents. These include the trade license, legal authority papers, and a formal Arabic complaint letter signed by an authorized person or manager.
Include details like the bounced check number, amount written on it, payee’s name, merit period listed on the check, and recipient’s Emirates ID copy.
Additionally, please share your email address to receive court updates and receipts.
Being thorough ensures the smooth filing of your civil case or criminal complaint regarding cheque bouncing.
Legal Process for Cheque Bounce Cases in Dubai
The legal steps begin with filing the case in court. The Execution Division may then step in to secure payment from the issuer.
Filing the complaint with the Dubai Courts
Filing the complaint starts by preparing all necessary documents. You need the dishonored cheque, a police report, and your Emirates ID.
Please attach the bank’s return memo indicating that insufficient funds are available to support your claim.
Please kindly submit these to Dubai Courts via their official channel. The court may issue a payment order within 15 days if objections are absent.
This step saves time since bounced cheques with insufficient funds are treated as enforceable documents under UAE law effective January 2, 2022.
Involvement of the Execution Division for payment orders
The Execution Division plays a key role in collecting payments for bounced checks. They can directly enforce payment orders issued by the court. If the drawer fails to pay within the set deadline, their assets may be seized.
This includes bank accounts, vehicles, or any other valuable property.
Unpaid cheques are treated as enforceable documents under UAE law. The division can take swift action against debtors through bailiffs without additional delays.
Drawers may request installment options but could face travel bans until full payment is cleared.
Cases often move fast and provide creditors with quick debt recovery solutions.
Time Limits and Deadlines for Filing a Case
Filing deadlines are crucial for a cheque bounce case in Dubai. Legal action must start within two years of the check’s presentation deadline. If delayed, courts may refuse to entertain your complaint.
For criminal cases, the maximum timeframe to file a police report is five years from when the incident occurred. Acting quickly helps protect your rights while ensuring compliance with UAE laws.
Cheques can be re-presented to banks during their six-month validity period if returned due to insufficient funds. This step can sometimes resolve issues without the need for legal proceedings.
Paying off the bounced cheque amount before execution procedures also cancels any potential criminal charges under current rules, effective from January 2, 2022.
Always track these deadlines carefully to avoid losing vital remedies, such as filing civil lawsuits or utilizing debt collection services through UAE systems.
Penalties and Legal Implications for Bounced Cheques in Dubai
Issuing a bounced cheque in Dubai can lead to serious consequences. Fines depend on the amount. For cheques below AED 50,000, the fine is AED 2,000.
A cheque between AED 50,000 and AED 100,000 will result in a fine of AED 5,000.
Cheques worth AED 100,000 to AED 200,000 carry fines of up to AED 10,000. Bigger amounts may involve harsher penalties.
Forgery or altering a cheque can result in a prison sentence of at least one year and fines ranging from AED 20,000 to AED 100,000.
If your account is closed or lacks funds for payment after intentionally or in bad faith writing a cheque, expect a jail term of six months to two years and additional fines starting from at least five percent of the value, but not less than AED 5,000.
The court might drop criminal charges if full payments are settled beforehand with an enforceable document submitted through the execution courts.
Repeated cases harm credit scores as banks share records with agencies like Al Etihad Credit Bureau (AECB).
This may block future loans or financial aid due to poor credit reports caused by dishonored cheques listed under crimes involving theft-level violations or fraudulent acts punishable within the UAE’s criminal system, alongside deportation risks for expatriates serving civil lawsuits backed by legally enforced settlements over debts owed rapidly.
Conclusion
Filing a cheque bounce complaint in Dubai may seem tricky, but it’s manageable with the right steps. Start by filing a police report and gathering your documents.
The law offers both criminal and civil options for justice.
Follow the process carefully, and you’ll be on track to resolve your case quickly. Taking action protects your rights as a payee in the UAE!
FAQs
1. What should I do if a cheque bounces in Dubai?
If a cheque bounces due to insufficient funds, you can file a complaint with the police. Visit the nearest police station with the dishonored cheque and the return memo from the bank.
2. Can I take legal action for a bounced cheque in Dubai?
Yes, you can pursue both criminal prosecution and civil remedies. The bounced cheque case may lead to criminal proceedings or the filing of a civil lawsuit for compensation.
3. How does public prosecution handle cheque bounce cases?
The public prosecutor reviews evidence, such as cheques, return memos, and Emirates ID copies, before deciding on further steps, including issuing an arrest warrant or forwarding the case to court.
4. Can bad faith in issuing cheques result in severe penalties?
Yes, bad faith actions, such as check forgery or knowingly writing cheques without sufficient funds, are serious offenses under UAE law and can lead to prison sentences or fines.
5. Is there any chance of facing travel bans over bounced cheques?
A travel ban may be imposed during criminal proceedings if authorities suspect non-payment of dues related to dishonored cheques.
6. How do civil courts differ from criminal courts in handling these cases?
Criminal courts focus on penalizing offenders for crimes such as the issuance of fraudulent cheques, while civil suits aim to recover money through enforceable documents filed with execution courts.