Have you ever received a Cheque that is bound over the cash counter? This is the most embarrassing, frustrating, and disappointing moment for anyone. If you heavily rely on the money that bounced will land you in hot waters. Now nothing to worry about. There are some lucrative legal steps that can cover the value or the worth of the bounced cheques. This is only possible with the legal assistance of a debt collection attorney in UAE. Let us tell you that services are called as Debt Collection and Debt Recovery equally.
Understanding the complexities of Bounced Cheques
A bounced cheque is the one that has been rejected by the bank due to different reasons. Once a cheque is bounced, it is returned back to the person who is submitting it. Moreover, it is given along with the Cheque Return Memorandum. The cheque Return Memo explains the reasons for its rejection.
Bounced Cheques Reasons
- Some cheques get bounced due to problems with the date. The Cheques should be cashed within a certain timeframe. This occurs when you wait too long to cash a cheque, the cheque gets bounced.
- In case, there is a signature mismatch. Henceforth, the signature on the cheque must match the signature on the file with the bank. If there is a mismatch over the signature, the cheque will not be cashed and ultimately bounce.
- Moreover, there is a discrepancy in the amount. In this case, the amount written in words should be similar to that written in the numbers. Both must be the same. In case, there is a difference, the cheque will be bounced.
Repercussions and Legal Consequences of the Bounced Cheques
The bounced cheque is criminalized as per the UAE law. Therefore, writing a bounced cheque is termed a criminal offense. This will lead to strict legal action. This can result in serious repercussions which are discussed below:
The Legal Notice is issued. The individual who received the bounced cheque can send a legal notice. The notice is sent to the issuer with a demand for payment within 15 days’ time or more. It can be decided with the consensus of both parties. This is type of Legal Notice cum Demanding Letter. Court Cases can also commence. If in case, the issuer fails to respond or pay within the specified time, the court case can start.
Cheque Submission is a crucial factor. Nevertheless, the bounced cheque can be submitted again after three months. For it, if the issuer assures that it won’t bounce once again.
Filing a Complaint is essential. The recipient can file a complaint with all the necessary documents regarding the approval of a bounced cheque.
Civil Suit is the ultimate implication of it. In case of the cheque being bounced, a civil suit can also be filed in the UAE court. This is done to recover the delinquent and pending amount. When debt collection does not work then, last option is to open the Civil Case or Commercial Case.
The Significant Role of Debt Collection Process
Debt collection agencies or Law Firms, play a crucial role in recovering delinquent accounts and doubtful debts. It also includes the bounced cheques. The debt collection agencies of the UAE specialize in pursuing debtors with the help of debt recovery lawyers. The debt collection can help the creditor in several ways. Professional negotiation is conducted by the debt recovery lawyers.
The main aim is to reach a settlement in an amicable way. This will ultimately satisfy both the parties including the lender and debtor. The legal expertise of the debt collection agencies will assist in understanding the legal framework of debt. They are capable of dealing with all kinds of debts surrounding debt recovery. Besides, they can navigate through the legal procedure effectively and efficiently. Nevertheless, they will properly prepare all the papers and are submitted to the relevant parties. They will make documents including legal notices, court filings, legal settlement agreements and the list goes on.
The Follow-up is essential and the Debt collection agencies will carry it. They will follow up rigorously with the debtors. They will ensure the due and unpaid payments on time.
For this, they will use various communication channels to serve the purpose. Nonetheless, the follow-up takes place following phone calls, messages, faxes, emails, posts, letters, and so forth.
Debt Collectors in UAE can assist with legal enforcement. One can take legal action against the debtors. This is done to endorse a payment promptly. This might involve legal case proceedings and pursuing a legal remedial action.
Factors Affecting the Choices:
Choosing the right collection agency is pivotal. For it, we will account for the reputation of the agency. The track record of the debt recovery collection should be better. The experience is also accounted for. Look for a debt agency with a vast range of experience and skills in the market.
The compliance with legal laws and legislation is important. The rules governing the debt collection in the UAE must be accounted for. The Communication of an agency is very important. The agency should maintain clear and transparent communication throughout the debt recovery process.
Cost is an essential factor to consider. The fee structure should be carefully discussed and viewed before taking up the services. Thus, one should make sure it aligns with the budget and expectations.
A Way Forward:
In case you are facing debt collection problems it is advisable to seek legal services. Recovering the worth of a bounced cheque is a daunting task to accomplish. With the assistance of debt collection lawyers in the UAE, one can achieve a favorable result. Consider the recovery with the support of debt collection attorneys to recover your delinquent amounts and bounced cheques.
