- City Fajr Shuruq Duhr Asr Magrib Isha
- Dubai 04:25 05:43 12:19 15:46 18:50 20:09
Even if the reason is genuine banks are likely to let a cheque bounce, leaving you facing jail. (FILE)
Some banks in Dubai have stopped honouring requests of their account holders to stop payments on cheques issued, particularly if the cheque was issued to pay rent.
Even if the account holder has a genuine problem, like s/he may have lost his/her job, banks are not stopping cheques, according to industry sources.
“I recently lost my job and approached my bank to stop payment on my rent cheque. They told me to submit a letter of consent from the landlord.
So, I was left with no other option but to let my cheque bounce,” one account holder said on the condition of anonymity.
Several banks contacted by this website declined to comment on the matter.
Account holders have to pay a penalty to the bank if a cheque bounces, but according to UAE laws can also face a prison term if a police case is filed against him.
Real estate agents claim that people who have recently lost their jobs tend not to honour their contracts, letting their cheques bounce.
“We have seen cases of cheques bouncing due to fund shortages… they [tenants] believe they can renegotiate terms thereafter with the landlord,” a realty agent who did not wished to be named, said.
In January 2010, Sharjah amended its tenancy law, allowing tenants to exit their contracts for reasons beyond their control by paying 30 per cent of the amount due for the remainder of the contract.
Although Dubai has no such law, in November 2009, the Dubai government established a new judicial committee to deal with bounced cheque cases in the property sector.
Agents also confirm landlords have remained tough on the issue and despite being served with a proper notice by the tenant (two or three months as per the contract), are reluctant to return cheques.
“I gave my landlord a written three-month notice of me vacating my apartment in Karama. As the date of my vacation drew closer, my landlord told me to pay a two-month penalty, or else threatened to deposit my cheques,” another grieved tenant said.
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