Abu Dhabi Merchants Committee: A large percentage of checks bounced back favored "cash" over them
Two experts: measures that enhance confidence in the check and speed up "litigation"
Two banking experts confirmed that the amendments adopted to the Commercial Transactions Law strengthened the strength of the check, which declined during the last period, and shortened the claim time, by speeding up litigation procedures.
They explained to Emirates Today that the facilities provided by government agencies to contain the repercussions of the emerging Corona virus crisis were exploited by some, and they were lenient in writing checks, which affected the strength of the check as a fulfillment tool.
In turn, the Traders Committee of the Abu Dhabi Chamber of Commerce and Industry pointed out that the past five years have witnessed a remarkable decline in confidence in dealing with checks, due to some deliberately writing it without a corresponding balance, or the failure of others.
In detail, the businesswoman, a member of the Abu Dhabi Chamber of Commerce and Industry board of directors, head of the “Traders Committee” in the chamber, Reed Al Dhaheri, said that the past five years have witnessed a remarkable decline in confidence in dealing with checks, due to some deliberately writing checks without a corresponding balance, or others default This made merchants prefer cash over checks. Although carrying large amounts of cash is not safe, returning a large percentage of checks creates a preference for cash on them.
She pointed out that there are merchants who cannot collect their money in the market, even though they have bounced checks, so it was important to issue amendments that address the problems caused by this situation.
Banking expert, Awatef Al-Harmoudi, said that the facilities provided by government agencies to contain the repercussions of the emerging Corona virus crisis were exploited by some, and they were lenient in writing checks, which affected the strength of the check as a fulfillment tool, pointing out that the past years witnessed an increase in the number of bounced checks, most of them For insufficient balance.
She explained that despite the banks ’tendency to increase electronic banking services and reduce the use of“ cash ”or checks, the market needed amendments to regulate the rights of all parties and speed up collection procedures that used to take a long time.
In the same context, the banking expert, Ahmed Youssef, said that the new amendments strengthened the strength of the check, which declined during the last period, and shortened the claim time by speeding up litigation procedures, and shortening them away from the civil path that takes years.
He added that the problem of bounced checks lies in the fact that the largest percentage of them is due to "insufficient balance," so the amendments dealt with bad faith, partial payment, and other points that protect the right holder and deter lax people in order to ensure the stability of financial and commercial transactions in the market.
Contact with the demands of merchants
Contact with the demands of merchants
The Chairman of the Board of Directors of "Al-Shumookh Oil Services Group", Dr. Ali Al-Amiri, said that the amendments have touched the demands of traders for some time, and restore confidence to the check as a means of fulfillment.
Al-Amiri agreed that there are business owners who are unable to collect money for them in the market, due to the lack of strength of the check in commercial dealings during the past years, which caused confusion in their business and affected the movement of trade in general.
He stressed that the amendments approved by the government would restore confidence in the check and deter those who issued it in bad faith, stressing that the market needs to protect business owners and accelerate litigation and implementation procedures, in line with the development and growth of the UAE economy.
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