For a Bounced Cheque in Dubai, the Penalty Can Be Years Behind Bars

[bear11]

http://www.nytimes.com/2009/09/12/world/middleeast/12dubai.html?_r=1&th&emc=th

[jackbauer]

Two points on this.
1. It's not just Dubai where you go to jail for bouncing a cheque but most of the Middle East.
2. If you think this is something new and people on this forum will be surprised then sorry to disappoint. It's been a well known fact for eon's.
3. Whats wrong with stopping people bouncing cheques anyway? This law recently helped a bunch of pilots from losing a shed load of money to a con artist in Dubai. But of course the U.S. press wont report that one as there is no shock value. We all know that as far as the press is concerned there is only ever one side to a story, their side!!

[Capetonian]

More jurisdictions should criminalise fraud.

[Al Fakhem]

The problem is, as outlined in the article, that you have to issue guarantee cheques for almost everything. This works fine as long as you keep up with your payments..... you would think.

In my case, I had a project to complete in India and was, therefore, out of the UAE for around three months. However, when my bank called my office in the UAE for some unrelated matter, the receptionist told them I "had left the UAE", which triggered the encashment of the guarantee cheque for my car loan.

Imagine my surprise when I was stopped at immigration upon returning to Dubai after about six weeks and taken straight to jail.......

It took me more than a week to sort out the matter (from jail). The most bizarre aspect was that whilst my current account, on which the guarantee cheque was drawn, did indeed have insufficient funds, my savings account would have done nicely........

[Oblaaspop]

You will only go to jail if there is a complaint filed with the police, it is not a given.

I know this, because I inadvertently bounced a cheque about 4 years ago to my daughters' school. (I forgot to transfer a small amount from another account)

There were sufficient savings in the other account to cover it with the same bank, but of course having useless customer service they didn't bother to call me to advise that they were not going to honour it.

The first I knew was about a month later when the school accountant contacted me to advise the cheque had been returned. He wasn't that bothered and even asked me just to provide another cheque, of course I drove straight there and gave him cash. He said it was no problem and that it happens all the time!!

Now if I couldn't pay, then I am sure the school would have taken it further.

I actually like the system, why write a cheque that you can't afford? If its a simple mistake, then it isn't a problem, if however its more sinister, then you deserve the consequences...... ITS NOT A BIG SECRET!!!!

[AQ737Driver]

What about when your company doesn't pay your wages or delays paying your salary and hence your autopay bounces?

[abc1]

''I actually like the system, why write a cheque that you can't afford?''

Good question for the''modern world''