أسئلة وأجوبة
Can the bank ask me to sign a blank cheque to withdraw a civil case for unpaid loan?
Hello
Is it customary that during the settlement of a personal loan, the bank asks you to sign a blank cheque?
I am no longer a UAE resident. The bank filed a civil case and went through direct execution.
Now that we are in settlement talk, they want a down payment and ask me to sign a blank cheque in case I default on the settlement agreement.
Previously, they made me sign a blank cheque and made me believe it was necessary in order to restructure the loan, but it was not their true intent.
The question is should I sign again a blank cheque as part of the settlement agreement?
If the bank is going to withdraw the case from the court, it is customary to ask for a blank check.
The bank will not accept the case being withdrawn without obtaining a guarantee that the other party will comply with the settlement.
Because the bank, by withdrawing the case, can't claim again.
But when the other party does not comply with the settlement, the bank can file a case under a blank check.
