How can I report a case of a bounced check in Dubai?
Option 1:
Submit an online application. Whether you are an individual or a business, you can apply online through the Dubai Police. Click this
Required Details:
- UAE applicant’s ID number
- Bank Name on Cheque
- Bank Check Account
- Number of Cheques (5 checks maximum per application)
Option 2:
Apply Manually. A letter of complaint written in Arabic on stationery showing the company/firm’s seal. Letter must include the following information: Name of Issuing Party, Address, Contact Information, Cheque Number, Date, Amount, Name of Bank, and Purpose of Issue.+ Copies of both firms’ Trade Licenses (or a copy of a party’s passport if the party is an individual).
- Original and duplicate of a bounced check, as well as a bank report
- Power of attorney or a letter of authorization for the person filing the complaint.
Procedure:
- Bring the aforementioned paperwork and Dh20 in fees to the local police station. You will be assigned a serial number, and an internal investigation into the report will take place.
- The Department of Investigation will make contact with the issuing party to attempt a peaceful money recovery; if this is unsuccessful, legal action will be taken against him and the case will be added to a national criminal record.
- Use the Dubai Police App to report bad checks: Rather than going to a police station, people may now report bounced checks via the Dubai Police App or mobile website. The function is accessible under the app’s section for mobile services.
- Submit pictures of the checks, fill out a brief form with some information, and the police will issue a letter to the sender that they can submit to the bank. The remainder of the process will then be handled by the bank and the police.
The validity period of the check that is to be cashed must not have expired, and it must have been issued within Dubai. These are the two requirements for reporting a faulty check.
- Bounced cheques worth Dh1 to Dh50,000: Dh2,000
- Bounced cheques worth Dh50,000 to Dh100,000: Dh5,000
- Bounced cheques worth Dh100,000 to Dh200,000: Dh10,000
- If Civil Court rules in favour of the plaintiff, the accused could be asked to:
- Pay full value of the cheque
- Pay 12 per cent interest starting from the issue date
- Pay Legal charges
- Face travel ban
Victims of bounced checks may bring civil lawsuits against the culprits.
By paying a maximum punishment of Dh10,000, violators of Legal Order Law No. 1 of 2017, which went into effect in December, can be prosecuted for bounced checks valued less than Dh200,000 without having their case heard by a judge.
The recipient of a bounced check has the right to assert his claims by going to the Civil Court, so the issuer should not assume that he can pay the fine and be exonerated. According to UAE law, the victim has three years from the moment the issuer was found guilty and paid the fine to launch the civil lawsuit.
Victims of bounced checks may bring civil lawsuits against the culprits. By paying a maximum punishment of Dh10,000, violators of Legal Order Law No. 1 of 2017, which went into effect in December, can be prosecuted for bounced checks valued less than Dh200,000 without having their case heard by a judge.
The recipient of a bounced check has the right to assert his claims by going to the Civil Court, so the issuer should not assume that he can pay the fine and be exonerated. According to UAE law, the victim has three years from the moment the issuer was found guilty and paid the fine to launch the civil lawsuit.
The value of the check will also be increased by 12% starting on the date of issuance if the Civil Court rules in the plaintiff’s favor. The defendant is required to pay the sum. The complainant has the right to ask the court to impose a travel ban on the individual who issued the rejected check, and the court may also order the accused to pay legal fees.
Frequently Asked Questions
Q1. In November 2018, I loaned one of my friends 200,000 Dh, and in return, I received an undated check. He had promised to pay back the money for the previous two years, but he has now refused to do so. Can I file a complaint in a court of law against him?
A. You must present a cashed check to the police in order to file a criminal complaint against the debtor. Therefore, you must deposit this check into your account. If it bounces, you have the right to denounce it to the authorities. As the check provides an evidence of debt, you might also go ahead and file a civil lawsuit based only on it.
Q2. What is the drawer’s responsibility in Dubai for a voided check? Is the drawer required to write a new check to replace the old one?
A. In general, a check is presented as payment for any underlying transaction. As a result, it is the drawer’s responsibility to pay the balance, either by writing another check or paying cash. A stale check cannot be deposited at the bank, in addition. However, the same invalid check can still be used to prove a civil claim against the same person for the amount written on it.
As a result, in accordance with Article 473 of the UAE Civil Code, you have the right to bring a civil complaint within 15 years against the drawer for the amount of the check.
Q3. What happens after a crime conviction and a jail sentence?
A. After serving a jail sentence in connection with a case involving a bounced check, a person is eligible for release. The initial complainant will, however, be required to make the unpaid sum payment or return to jail if the case is re-filed in civil court. After receiving his seized passport, the person is free to leave the country if there are no ongoing cases or further charges.
Q5. Who is responsible for a business check?
A. In corporations or partnership firms, not all partners or stakeholders can be held accountable if a check is written without enough money to cover it.
Whether a manager or a partner or co-owner, the person who signed the check is responsible for any criminal consequences. The value of the check is unaffected by the private funds of other persons. Its value can only be realized through using the company’s assets.
The case might go in a different way, though, if it can be demonstrated that the losses or lack of money that caused the company-issued check to bounce was caused by some sort of fraud on the part of the owners or partners.
Q6. What the law does if a cheque is bounced?
A. You will be the target of both a criminal and civil lawsuit. However, the criminal and civil courts run independently.
There are significant distinctions between civil litigation and criminal prosecutions.
Laws, processes, courts, and judges in civil litigation are distinct from those in criminal cases. The criminal cases always begin at the police stations and are governed by the penal statutes. There, complaints and reports are filed, after which the public prosecution handles the matters before a judge in a criminal trial.
Claims in civil cases result from investments and contracts, and civil and commercial laws are applicable. These cases are submitted directly to the courts.
According to the Penal Code, signing and issuing a bounced check is a crime that carries a jail sentence or a fine as a punishment. The criminal case is over if the defendant settles with the complainant or pays the amount on the check. If the two sides can come to an agreement, the punishment is revoked, and the defendant is released from custody.
Even if the defendant has just been released from jail after serving their sentence, a complaint may still attempt to initiate a civil lawsuit against them to recover the amount on the cheque. This indicates that a person’s financial obligations are not excused by the criminal punishment. If both parties are businesspeople, the Law of Commercial Dealings will be in effect.
Contact Us
Feel free to get in touch with our team for more information. You can contact us by calling our UAE number 04-3961284 or our hotline at+971 52 888 4714