A bounced cheque in Dubai can land you in jail! The Dubai police have started a two-week campaign to alert residents of the dangers of bounced cheques.
The campaign, titled Cheque is a Loyalty Tool Not an Insurance Tool, aims to use social media to educate residents about the problems that arise from issuing blank cheques when availing loans.
Brigadier Mohammad Nasir explained that when banks stop receiving the money from clients, they use blank cheque as insurance, fill out the required amount, and contact the police.
He added that when the police receive a complaint of a bounced cheque they first contact the person issuing the cheque and give them a month-long grace period to pay the amount. If they refuse or fail to do so, the case goes to court – where the punishment is jail, a fine, and payment of the original amount due.
General Khalil Ibrahim Al Mansouri, CID Assistant in Dubai Police said that “some people find themselves behind bars because they do not maintain enough balance in their accounts. This practice is harmful for the economy as well as families.”
Over the past three years, the total amount of bounced cheques in Dubai was Dhs33.3 billion, said General Al Mansouri.
From 2011 to the first three months of 2014, Dubai Police opened 92,290 complaints of bounced cheques – the majority of which involved people aged between 18 and 35.