RETURN BOUNCED CHEQUES
Returned Cheques? We assist you in Recovering
Our Team of Expert Advisors can assist you in recovering your owed money in Legal ways.
A cheque return occurs when a bank is unable to process a cheque presented for payment. This can happen for various reasons and often results in additional fees or financial consequences for both the issuer and the recipient of the cheque.
A cheque that is returned or dishonored incurs penalties for the issuer. Amendments to the rules in early 2022 now classify issuing a cheque without sufficient funds as a civil offense. Article 630 of the Federal Decree-Law No. 50 of 2022 states that a cheque can only be written if there are sufficient funds in the account at the time of issuance. Additionally, the changes mandate partial payment of a cheque if full payment is not possible.
Common Reasons for Cheque Returns include:
- Insufficient Funds: When a bank indicates no balance or an insufficient balance at the time the cheque is presented, it is considered an executive instrument. The beneficiary can directly approach the execution court for enforcement.
- Account Closed or Dormant Account: Bounced cheques can result in criminal charges, including fines and imprisonment, in the UAE if the account is intentionally closed, funds are withdrawn to prevent payment, or there is an intentional false declaration of insufficient funds. The beneficiary can initiate criminal charges and file a civil case to recover the cheque’s value.
- Stale Date/Irregular Date: Cheques must be presented for payment within six months. Failing to do so may result in the cheque being dishonored. However, the beneficiary can still file a case to claim the cheque’s value.
- Irregular Signature: A cheque may be returned if the signature on the cheque does not match the signature on file at the bank. If a cheque with an incorrect signature is received, the first step is to contact the issuer and inform them of the issue. They may issue a new cheque with the correct signature or take other corrective measures. If the incorrect signature was made in good faith and the issuer is willing to rectify the mistake, the matter can be resolved amicably. However, if the incorrect signature was made intentionally or maliciously, legal action can be taken to recover the amount owed. This involves filing a complaint with the competent authorities and initiating a civil lawsuit against the issuer. The court will verify the signature and issue a judgment based on its findings
Have any questions? Need assistance? Contact our support team at 056 871 7212 or info@tassheellegaldocs.ae. We’re here to help!
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