Legal Notice For Bounced Cheques is a common practice in commercial transactions and the UAE, but when a check bounces, many questions arise about the legal procedures followed. This guide aims to provide a simplified and comprehensive explanation of the legal procedures related to bounced checks in the UAE, with a focus on legal notices.
What is Legal Notice For Bounced Cheques?
A bounced cheque in the UAE is a payment order issued by a person (the drawer) to the bank where he deposits his money, to pay a certain amount of money to another person (the beneficiary). If the drawer does not have sufficient funds in his account to cover the value of the cheque, the cheque is returned to the beneficiary, at which point the cheque becomes bounced and a legal notice regarding bounced checks is sent.
Read more: Legal Notice in Dubai
Process of Sending a Legal Notice For Bounced Cheques in Dubai
Bounced cheques in the UAE, especially in Dubai, are a serious legal issue. When faced with this issue, sending a legal notice is the first step to protecting your legal rights. This guide aims to provide a comprehensive overview of the process, starting with the reasons why you should send a legal notice for bounced cheques.
Why send a legal notice for bounced cheques in Dubai?
- Notification: The legal notice for bounced cheques aims to alert the other party of their financial obligations and the consequences of non-payment.
- Attestation: The notice records the date of your claim, strengthening your legal position in the event of resorting to the courts.
- Avoid escalation: A legal notice for bounced cheques may prompt the other party to settle the matter amicably, saving you the cost of litigation.
Read more: How to Send Legal Notice in Dubai: A Complete Guide
When should you send a legal notice for bounced cheques in Dubai?
- When a cheque bounces: Once a cheque has been returned from the bank, you should take the necessary legal action.
- After unsuccessful attempts: If you have tried to contact the other party directly without success, a legal notice for bounced cheques is the next option.
Check if the conditions for sending a legal notice apply
Bounced checks are a common legal problem in the UAE, specifically in Dubai. When faced with this problem, it is necessary to follow the correct legal procedures to ensure the rights of the beneficiary of the check. Therefore, in the following lines, we explain the conditions for sending legal notice for bounced checks in Dubai:
Drawer notification:
- Official notification: The beneficiary must send an official notification to the drawer (the person who issued the check) informing him of the bounced check and the need to pay the due amount.
- Notification method: Legal notice for bounced checks can be sent by registered mail with acknowledgment of receipt, or by any other means that ensures the notification reaches the drawer and the date of its receipt.
Bank certificate:
- Certificate of insufficient balance: The beneficiary must obtain a certificate from the bank in which the check was presented, proving that there is insufficient balance in the drawer’s account to cover the value of the check.
- Importance of the certificate: This certificate is considered conclusive evidence of the bounced check and is used as evidence in subsequent legal proceedings.
Legal period:
- Specification of the period: The legal period granted to the drawer to pay the due amount varies according to the UAE laws.
- Importance: The beneficiary must wait until the end of the legal period before taking any legal action.
Legal procedures:
- Arbitration: In some cases, arbitration can be resorted to to resolve the dispute over the bounced cheque.
- Judiciary: If arbitration fails or is not resorted to, the beneficiary can file a lawsuit before the competent court to request the execution of the cheque.
Read more: Drafting Legal Notice For Non Payment of Rent in Dubai
Importance of Sending a Legal Notice For Bounced Cheques
Legal notice for bounced cheques in Dubai is the first and official step to recover the due amount. According to UAE legislation, this procedure preserves the rights of the creditor and gives him the necessary legal tools to pursue the claim. Therefore, in the following lines, we explain the importance of sending legal notice for bounced cheques in Dubai:
- Establishing rights: The notice is considered an official notification to the debtor that he is in default of his financial obligations, which proves the creditor’s right to claim the due amount.
- Opening the door to negotiation: Legal notice for bounced cheques may lead to settling the amount amicably, avoiding the legal path and the resulting additional costs.
- Legal basis for prosecution: If the amount is not settled amicably, the legal notice represents the legal basis on which the creditor can rely to file a lawsuit against the debtor.
- Maintaining the credit record: Failure to pay a bounced cheque may negatively affect the debtor’s credit record, making it difficult for him to obtain loans or financing in the future.
Read more: How Much Do Legal Notice Cost in 2025?
Advantages of sending legal notice for bounced cheques in Dubai by POA&More
POA&More Notary Public Dubai is a digital platform that provides various legal services, including sending legal notice for bounced cheques in Dubai. This service has a set of advantages that make it an attractive option for many individuals and companies:
Speed and ease of procedures:
- Save time and effort: The platform allows the preparation and sending of legal notice for bounced cheques electronically, which shortens the time and effort required to carry out these traditional procedures.
- In simple steps: The process of sending notices through the POA&More platform is easy and straightforward, as the user is guided step by step to complete the required procedures.
Accuracy in legal drafting:
- Professional drafting: The legal notice for bounced cheques is prepared by a specialized legal team, which ensures the accuracy of the drafting and its inclusion of all necessary legal elements.
- Compliance with local laws: The platform ensures that the notices are in compliance with the laws and regulations in force in Dubai and the United Arab Emirates.
Track the status of the notice:
- Continuous follow-up: The user can track the status of the legal notice for bounced cheques through the platform, and know whether it has been delivered to the recipient or not.
- Automatic Notifications: The platform provides automatic notifications to the user about any developments related to the notice.
Competitive legal notice for bounced cheques cost:
- Competitive pricing: POA&More offers competitive pricing for sending legal notice for bounced cheques compared to traditional legal services.
- Cost Transparency: The cost is clearly stated before the process begins, giving the user complete transparency.
Data Privacy and Security:
- Data Protection: The platform adheres to high standards of privacy and security to protect users’ data.
- Data Encryption: All sensitive data is encrypted to protect it from unauthorized access.
Technical Support Available:
- Help Available: POA&More’s technical support team provides assistance to users in case of any queries or issues.
- Multilingual Support: Support may be available in multiple languages to cater to users from different nationalities.
In short, sending legal notice for bounced cheques in Dubai by POA&More is a practical and effective solution for many individuals and businesses. It offers speed and ease of procedures, accuracy in legal drafting, reasonable cost, in addition to a range of other advantages that make it an attractive option.
Read more: Notarization Eviction Notice to Tenant Dubai
Frequently asked questions
What is the new law for bounced cheque in the UAE?
The UAE Cheque Law has undergone significant developments in recent years, with the aim of regulating commercial transactions and reducing cases related to bounced cheques. In the following lines, we explain in detail the new laws in the legal notice for bounced cheques in the UAE:
- Decriminalization of bad faith: The criminal penalty for issuing a cheque without a balance has been abolished, unless there is conclusive evidence of a prior intention to not pay. This amendment aims to reduce the burden on the judicial system and avoid imprisonment in cases that may result from unintentional errors.
- Focus on financial compensation: Instead of criminal penalties, the new law focuses on financial compensation for the owner of the cheque. The value of the fine is determined as a percentage of the value of the cheque, with a minimum and maximum fine set.
- Faster enforcement procedures: The procedures for enforcing bounced cheques have been simplified, ensuring that the owner of the cheque obtains his financial rights faster and more effectively.
- Preventive measures: The new law encourages taking preventive measures to prevent the issuance of cheques without a balance, such as checking the balance before issuing the cheque and providing financial guarantees.
What is the legal action for a bounced cheque?
A bounced check is a check that has been presented for cashing at the bank, but has been refused for lack of sufficient funds in the customer’s account. This is considered a legal violation in the UAE, and certain legal procedures are required. In the following lines, we explain the procedures followed when receiving a bounced check:
Notifying the bank:
- The beneficiary (the person who presented the check for cashing) must immediately notify the bank on which the check was drawn.
- The bank must notify the drawee (the person who issued the check) of the bounced check.
Contacting the issuing party:
The beneficiary must contact the party that issued the check (the drawee) and attempt to settle the matter and pay it.
Legal procedures:
- Enforcement suit: If the matter is not settled and the value of the check is not paid, the beneficiary can send a legal notice for bounced checks by filing an enforcement suit before the competent court.
- Enforcement judgment: After a court ruling is issued in favor of the beneficiary, the court can issue an enforceable judgment ordering the drawee to pay the amount due.
- Enforcement procedures: Enforcement procedures include seizing the funds or assets of the drawee to ensure payment of the debt.
How long does a bounced check stay on your record in the UAE?
How long does a bounced cheque stay in the register in the UAE? There is no specific and uniform time frame for how long a bounced cheque should remain registered in the register of individuals or companies in the UAE. The registration period depends on several factors:
- Type of crime: Is it a bounced cheque or a forgery crime?
- Value of the cheque: The value of the bounced cheque affects the type of penalty and the registration period.
- Number of times: Repeatedly committing the bounced cheque crime increases the registration period.
- Legal action taken: If legal action is taken and a court ruling is registered, this leaves a permanent mark on the register.
- Bank policies: Each bank has its own policies regarding the period of retention of bounced cheques.