Does a cheque bounce effect my AECB score ? Is there a policy for this?

Greetings of the day,

Yes, a bounced cheque can negatively impact your AECB (Al Etihad Credit Bureau) score. The AECB keeps track of financial behaviors, including bounced cheques, which can affect your credit rating and borrowing ability.

It's important to ensure sufficient funds before issuing a cheque to avoid this.

Best Regards,

Sara Al Saedi Advocates and Legal Consultants

Thank you for reaching out with your inquiry regarding the impact of bounced cheques on your Al Etihad Credit Bureau (AECB) score.

Does a Bounced Cheque Affect Your AECB Score?

Yes, a bounced cheque can negatively impact your AECB credit score, particularly if it remains unpaid or leads to legal action.

The AECB collects financial data from banks, courts, and utility companies to assess an individual’s creditworthiness.

How a Bounced Cheque Can Affect You:

Credit Score Reduction: A bounced cheque due to insufficient funds can lower your AECB credit score, affecting future loan approvals, credit card applications, and financing terms.

Banking Restrictions: Some banks may impose restrictions on your account, limiting cheque issuance privileges.

Legal Consequences: If the cheque remains unpaid, the beneficiary may file a criminal or civil case, potentially leading to enforcement actions.

AECB Policy on Bounced Cheques:

While there is no single fixed policy, banks regularly report bounced cheques to the AECB, and repeated incidents will reflect negatively on your credit report.

Some banks may be more lenient in case of a one-time occurrence, but multiple bounced cheques can significantly impact your financial profile.

How to Avoid Negative Impact:

Ensure Sufficient Funds before issuing cheques.

Request a Settlement Plan with the beneficiary if a cheque is likely to bounce.

Work with Your Bank to cover any shortfall to avoid cheque return reports.

Monitor Your AECB Report regularly to check for any negative entries.

If you need further assistance or legal guidance on resolving bounced cheque issues, we would be happy to discuss possible solutions with you.

Looking forward to assisting you.

Best regards,

Omar Mosaad

Senior Legal Consultant

OS Legal

Dear questioner

Yes, a bounced cheque can indeed negatively impact your AECB (Al Etihad Credit Bureau) score.

The AECB collects financial data from various sources, including banks and financial institutions, within the UAE.

Check with AECB for the credit score. If you need our assistance, kindly share your Whatsapp number.

Yes, a bounced cheque affects your Al Etihad Credit Bureau (AECB) score, as it is considered when calculating creditworthiness along with other financial behaviors.

Despite the UAE decriminalizing bounced cheques in January 2022, they can still negatively impact credit scores, making it more challenging to obtain loans or credit in the future, thus highlighting the importance of regularly monitoring your AECB score.

Dear Client,

Thank you for your inquiry regarding the effect of bounced cheques on your Al Etihad Credit Bureau (AECB) score.

I'm pleased to provide you with the following information:

1. Credit Score Impact:

- Bounced cheques are indeed recorded in your AECB credit file and can negatively impact your credit score.

- These records typically remain on file for up to 5 years.

2. Severity of Impact:

- While a single instance may have a limited effect, multiple bounced cheques can significantly damage your credit standing.

- The AECB considers bounced cheques as part of their overall assessment of your creditworthiness.

3. Recent Legal Changes:

- Despite the decriminalization of bounced cheques in the UAE in 2022, AECB officials confirm that they continue to affect credit scores.

4. Potential Consequences:

- Repeated instances of bounced cheques may lead to more severe actions, such as account closure or restrictions on opening new accounts, as directed by the Central Bank.

5. AECB Cheque Score:

- The AECB offers a "Cheque Score" service, underlining the importance of cheque payment history in credit assessments.

While there isn't a publicly available policy detailing the exact impact on AECB scores, it's clear that bounced cheques are a significant factor in credit evaluations in the UAE.

For more detailed information about your credit score or to discuss specific concerns, I recommend contacting the AECB directly or consulting with a financial advisor.

If you have any further questions, please don't hesitate to ask.

Best regards,

ABDUL WAHIED