Two Bankers: Downgrades the credit rating to the lowest level

Return of 4 checks within a year closes the bank account and deprives "finance"

• A check is a fulfillment instrument that has the power of money under the law.

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• Amjad Nasr: "The return of 4 checks prompts the bank to stop granting check books to the customer for a period that may extend for a whole year."

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Two bankers confirmed to «Emirates Today» that the return of four checks to the customer within a year, his exposure to the closure of his bank account permanently, and the notification of the Central Bank, to put him on a list that has a negative impact on his credit status, in addition to reducing his credit rating to the lowest degree, which prevents him from obtaining any financing future for a long time.

They advised dealers, especially company owners, to be careful when writing checks, noting that the return of four checks also prevents them from obtaining a checkbook for a period ranging from six months to a year.

They explained that the check is a tool of fulfillment, and it has the power of money under the law, therefore, the customer who issues the check, whether he is an ordinary individual or a business owner, must ensure that there is sufficient balance in his bank account, ensure the validity of the signature, and other matters that cause the check to return. .

Return checks

In detail, banking expert Amjad Nasr said that the Central Bank’s instructions to banks stipulate that if the customer returns four checks within a year without a technical reason, such as the presence of a scrape in the check, or the validity of a signature, the bank has the right to close the account completely, unless The customer has a debt or a loan, and here the bank stops giving him checkbooks for a period that may extend for a whole year, which affects his business.

Nasr pointed out that the banks, as a matter of precaution, give the customer who opens a bank account for the first time, only four checks, not a complete book, and wait to verify his credit behavior.

Nasr warned that the bounce of checks exposes the customer to lowering his credit rating to the lowest degree, which prevents him from granting him any financing or loans for a long period that may extend for two years.

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In turn, the banking expert, Ahmed Ibrahim, said that the banks inform the Central Bank of the dealers to whom four or more checks are returned from the owners of the companies, so they are put in a special list.

He stressed that some banks close the customer’s bank account permanently, if he does not have any obligations towards the bank, or forbid him to obtain a check book, if he has debts, indicating that the most important and most influential is to inform the Al-Etihad Credit Information Company, which leads to a reduction in the number of credits. His credit rating is at the lowest level.

Ibrahim stressed that the check is a tool of fulfillment, and it has the power of money according to the law, and therefore, every dealer, whether he is an ordinary individual or a business owner, must ensure that there is sufficient balance in his bank account, as well as ensuring the validity of the signature, and other matters that cause a return. check.

100 thousand dirhams .. a penalty for the bank

The Penal Code stipulates that the bank that gives a new checkbook to those against whom a ruling in a bounced check case has been issued, must pay a fine of 100,000 dirhams.

The Commercial Transactions Law regulates check issues, away from the Central Bank Law, which has opted for non-interference over the past years, despite the companies’ owners’ demands for flexibility in dealing with check issues.

black list

In a previous circular issued by the Central Bank, to reduce the phenomenon of bounced checks, the Central Bank stressed that banks should specifically shorten the reasons for the return of the check in: insufficient balance, mismatch of signature, write-off, account closure, freezing, or seizure it, or other reasons (mentioned).

The Central Bank also requires banks to take a number of measures against those who used to issue bounced checks, the first of which is to close the customer’s bank account in the event that it issues four checks, and to return them for reasons related to bad faith, such as insufficient balance.

The Central Bank also obliged the banks to inform it of the names of these people, in order to include their names on the blacklist that it provides to all banks.

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