Bounced cheque cases in UAE fall significantly

One-month grace period to debtors main reason: official

There is significant decline in the number of bounced cheque cases against Emiratis this year. As against 5,623 reported cases last year, only 3,760 complaints were recorded so far in 2011, reported 'Al Khaleej'.

Brigadier Khalil Ibrahim Al Mansouri, Director-General, Criminal Investigation Department (CID), Dubai Police, said as per the directives of Lieutenant General Dhahi Khalfan Tamim, Commander in Chief, Dubai Police has adopted a new system to settle bounced cheque cases, wherein debtors are given a one-month grace period to clear the cheques. This has drastically reduced cases, he added.

Al Mansouri also said Dubai Police have develpoed a software to electronically transfer bad cheque cases to police stations from banks directly. This saves trouble and effort for bank representatives. It also gives an opportunity for defendants/debtors to present their cases before being produced in court. Most of them could clear such cases and avoid going to jail, he added.

Currently the new system is being discussed with the Ministry of Interior, which in turn will alert all police stations in the UAE, Al MAnsouri said.

Unemployed debtors who land up with bounced cheques will be given an opportunity to find work and repay the loan and Dubai Police will also give them 'good conduct' certificates to help in their job search, he added.

Apart from these measures, police officials try their best to talk to both parties involved in bad cheques to reach an amicable solution.

Colonel Jamal Al Jallaf, Deputy Director, Dubai CID, Management and Control, said so far this year 760 complaints of bad cheques against Emaratis have been recorded. These included personal loans and payments, credit cards, etc as well as 274 car loans and eight involving mortgage cases.

Al-Jallaf said most Emiratis do not understand the seriousness of the issue and thus end up with bad cheques. Secondly banks forward loans without studying the financial status of the applicants.

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