Q: Over AED 200k or under AED 200k? I am confused as to how my police case will be treated by the police/justice system based on the 200k rule. The bounced cheque was for AED 235,000. However, my outstanding balance with the bank is around AED150,000. The cheque is slightly above 200k yet the outstanding balance is below 200k. Is it safe to assume I'm being treated as though the cheque was under 200k? How do I find out sure? I only received a paper with my photo on it which the policeman asked me to sign. I have no idea what I signed as it is all in Arabic. Secondly, why did the airport police take my passport? I thought the police no longer confiscate passports for loan cases due to the new 'smart bail 'system. My visa is up for renewal in 1 month. Can I get my passport back from the police (even just temporarily) to renew my visa? If I can't renew my visa, I can't work and won't be able to pay anything. As long as I renew visa and keep my job, I can settle the loan in around 6 months. Thanks

Q: Hi Hari, I have a question that I can't find in any of the Q&A in the forum. I have a loan from the bank and due to financial distress, there's a probability of facing a criminal offence. I am from Dubai and my loan application was in Dubai. Can the bank bounce your cheque in different emirates? Since Dubai only imposed fines on less than 200k, does the bank have the leverage to file on other emirates due to a different approach of each emirate on criminal offence? Thanks and looking forward to your response.

Q: Hi, My name is A. I want to get your advice about my debts. I have 7-8 cards worth 250k and 200k personal loan. My salary is just 10k and I have my family with three grown-up kids and 60-70% of my salary goes in school fees, rent and other related expense. My personal loan is auto-debit that means I am left with nothing to pay the instalment of the cards. I need your help in settling this issue on priority. I am overloaded with debts and need immediate help. I have spoken to the banks and explained my problem; they are least bothered. Interest and late payment fees keep on mounting up making the amount a big challenge. The banks have been charging me interest for years and still no help is expected from them. I would request you to suggest some amicable solution to my problem. Looking forward to your valuable suggestions. Thanks, A.

Q: Can the payment terms & bail against fines for bounced cheque cases be negotiated in Dubai?

In the UAE, cheque bounce is a very frequent problem faced by people during their span in the country. It is covered under the purview of Commercial Transactions Law, and legal implications/penalties can be financially severe and daunting for more “serious” offenses. Bounced cheque issues may arise in a variety of commercial transactions, including but not limited to, companies’ exchanges, bank loans, property rents or purchases, and individual transactions.

This Law applies to merchants, as well as to all acts of commerce carried out in the UAE by any person even though he be not a trader. Commercial matters regarding which specific Federal laws are issued shall be subject to the provisions of such laws, and to the provisions hereof which do not contradict with said laws.

This Law promulgates the Federal Penal Code (Criminal Law) of the United Arab Emirates. Crimes and chastisement punishments shall be determined in accordance with the provisions of this Law and other penal codes.

The provisions of this Decree by Law amend the Federal Law No. (18) of 1993 by replacing Clause (4) of Article (379) as well as Articles (600), (617), (641), (642), (643), (644), and adding new articles numbered (635) Bis, (641) Bis (1), (641) Bis (2), (641) Bis (3), (641) Bis (4), (643) Bis (1), (643) Bis (2), (644) Bis (1) and (644) Bis (2). The Decree-Law also repeals Articles (401), (402) and (403) of the Federal Law No. (3) of 1987.