Amendments to “decriminalize” enter into force today.. and start implementing “partial fulfillment”
Banks continue to inform the "credit information company" of the bounced check
Partial payment means paying a part of the value of the check, according to the amount available in the account.
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Awatef Al-Harmoudi: “The customer can present the check for collection and partial payment more than once, until he fulfills his full entitlement.”
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As of today (Monday), banks operating in the country will implement the amendments to decriminalize the check and implement the partial fulfillment mechanism for the issued checks, after the written approval of the check holder.
According to information collected by "Emirates Today", from operations managers in a number of banks, there is no change in the mechanism of informing the Al-Etihad Credit Information Company, of the returned checks, to be included in the report and credit assessment for each customer, according to what was previously applied.
They indicated that the abolition of the criminal aspect of issuing bounced checks, without bad faith, does not affect their negative credit status for the customer, as he is exposed to a drop in the credit rating number to the lowest level, if the number of checks reached four bounced checks during a year, for example.
They added that the customer should ensure that the balance is sufficient before issuing any check.
Specific Fee
For her part, the banking expert, Awatef Al-Harmoudi, said, "The banks start from today to implement the partial fulfillment mechanism of the check, if the customer wishes to do so, in exchange for specific fees that differ from one bank to another."
She added that “one of the conditions for the partial fulfillment of the check is that it be returned, and the banks will start implementing the mechanism in stages, and the current stage is implemented on the counters of the issuing banks on which the checks are issued, meaning that the customer wishing to pay a partial payment of a bounced check leads him to go to the branch of the bank on which the check is issued, and demands partial collection. him, and then the amount available in the account of the customer issuing the check is deducted, and then the check is marked as partially collected,” stressing that “the customer can present the check for collection and partial payment more than once until he is fully entitled.”
Al-Harmoudi added, "Banks have efforts and work during the coming period to develop from partial collection mechanisms to be carried out quickly and smoothly."
It is noteworthy that at the beginning of last November, the Central Bank announced that the new amendments to the Commercial Transactions Law regarding the decriminalization of the check without a balance and the amendments related to the “partial fulfillment” of the check, and the tightening of administrative penalties for issuing the check without a balance, shall enter into force as of From January 2022.
partial fulfillment
And the Central Bank clarified, in a circular sent to banks and finance companies at the time, that “partial payment means paying part of the value of the check, according to the amount available in the account.”
He added that the bank, if the balance available in the account is less than the amount of the check, must make partial payment to the extent that it has, unless the check bearer refuses to do so, indicating that in this case the bank must indicate on the back of the check for each partial payment indicating that.
According to the new amendments, the cases of criminalization and fraud related to the check were limited to four specific cases: “Cases of fraud” when issuing the check, such as issuing an order, or requesting the bank before the due date not to cash the check unjustly in cases other than those stipulated in Articles (620). ) and (625), which is the case of loss of the check or bankruptcy of the bearer.
As for the second case, it is “cases of criminalization” in the crimes of forging and using checks, while the third case is “closing the account” or withdrawing the entire balance in it before issuing the check, or before presenting it to the bank for disbursement, or the account was frozen. As for the fourth case, it is deliberately Writing or signing the check in a way that prevents its cashing.
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