عقوبة عدم تسديد القروض البنكية

Dear Sir,

In regards to your query, we would like to state that in general practice, banks usually collect a signed cheque as a security deposit at the time of issuing a loan.

Article 401 of the UAE Penal Code provides that an individual who issues a cheque with insufficient balance, causing the same to bounce, can face imprisonment of one month to three years, or a fine of a minimum of AED 1,000 or both.

But this doesn't end here, a debtor won’t be set free from his financial liabilities even after he has done his jail term. As afterwards civil case follows for the recovery of money and in case of your inability to pay the outstanding amount, the court may order you to go under another imprisonment.

Should you have any further clarification, please do not hesitate to contact us at info@awsuwaidi-advocates.com

Best Regards,

Aws M. Younis