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What happens if I default on payments for which I've issued a post-dated cheques?

Post-dated cheques are the preferred mode of payment by Dubai lenders, be that a private property owner granting a lease or a bank granting a loan. This is because the Sharia Law specifically states no one can be compelled to pay debt. PDCs insure the lenders right to repayment of debts owed to them under UAE laws pertaining to fraud. A cheque stamped DAIF (drawn against insufficient funds) is enough evidence for a case of fraud to be filed against you. Your creditor can bring a DAIF cheque to the police and have you arrested for fraud. On top of this, banks charge stiff penalties of up to AED 200 for every cheque that fails to clear.

| Modified: October 23, 2018 | Author:

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