Bahrain
Kuwait
Oman
Qatar
Saudi Arabia
UAE
Print
Email
Discuss this article (10 Comments)Dud cheque reports on the decrease - Dubai police
by This email address is being protected from spam bots, you need Javascript enabled to view it on Monday, 28 September 2009
MONEY MATTERS: The number of fake cheques reported in Dubai has fallen since Q2, a senior police officer said.
The number of dud cheques being reported in Dubai since the second quarter of the year has fallen, police chiefs have said.
Major General Khamis Matter Al Mazina, deputy commander-in-chief of the Dubai Police, said the rate had now reduced to the pre-global economic crisis average, indicating an upturn in the local economy.
The exact numbers are yet to be computed for the second and third quarters but Al Mazina said the situation had improved.
“The number of dud cheque cases recorded dropped from the second quarter to the end of the third quarter of this year,” he said in comments published by Khaleej Times on Monday.
Dubai Police have recovered AED8.6 million of the AED40 million owed by way of dud cheques issued in 2008, he told the paper.
Al Mazina attributed the increase in the previous increase in number of dud cheques issued to doubts over the financial security of the country’s institutions and the failure of people to pay their debts.
Cheques bouncing in the first quarter were putting a strain on the police, courts and jails, he added.
The police had given people grace periods to pay off bounced cheques before referring cases to the public prosecution, according to Al Mazina.
READERS' COMMENTS
Disclaimer: The views expressed here by our readers are not necessarily shared by ArabianBusiness.com or its employees.
Decrease in Duds
Posted by Mike Charlie Mike, Dubai, UAE on Monday 5 October 2009 at 19:50 UAE time
Fair play to the police for the amount of registrations they have to do daily for cheque cases, the follow up and the hassles from the aggrieved; however the actual reason for the reduction in cases registered is the banks have been given quotas on the amounts of cases they can register per week. My magic eight ball says there will be further reductions in the future, but that will not be an economic indicator, but rather the police throwing in the towel to use their resources for proper police work instead. Unless proper legislation is put in place and collection and recovery laws are formalized the coppers will always have the burden of chasing the afflicted and mixing them in with the guys who really deserve some "one on one" time with the judge...
How about central credit reporting or avoiding the problem in the first place? The majority of cases (registered) are from individuals who have taken facilities from several banks; and he who registers first usually gets the biggest chance of recovery. Many people either in good faith or with bad intent borrowed from Peter to Pay Paul, or just borrowed and left. For this please ask the Central Bank about credit reporting... That would be an interesting article to read in AB. Lack of (requiring) local credit reporting is exactly what enabled the free for all of frenzied lending to happen here. I do however respect the difficulties in getting people to agree to shine light where there has always been darkness...
Posted by Mike Charlie Mike, Dubai, UAE on Monday 5 October 2009 at 19:50 UAE time
Fair play to the police for the amount of registrations they have to do daily for cheque cases, the follow up and the hassles from the aggrieved; however the actual reason for the reduction in cases registered is the banks have been given quotas on the amounts of cases they can register per week. My magic eight ball says there will be further reductions in the future, but that will not be an economic indicator, but rather the police throwing in the towel to use their resources for proper police work instead. Unless proper legislation is put in place and collection and recovery laws are formalized the coppers will always have the burden of chasing the afflicted and mixing them in with the guys who really deserve some "one on one" time with the judge...
How about central credit reporting or avoiding the problem in the first place? The majority of cases (registered) are from individuals who have taken facilities from several banks; and he who registers first usually gets the biggest chance of recovery. Many people either in good faith or with bad intent borrowed from Peter to Pay Paul, or just borrowed and left. For this please ask the Central Bank about credit reporting... That would be an interesting article to read in AB. Lack of (requiring) local credit reporting is exactly what enabled the free for all of frenzied lending to happen here. I do however respect the difficulties in getting people to agree to shine light where there has always been darkness...
NO Cheques
Posted by Philip, Dubai on Saturday 3 October 2009 at 10:02 UAE time
The real reason for a decrease in the number of dud cheques may well be the fact that no cheques or payments are being issued. The large developers ( we all know which ones) are not paying at all so the money has stopped flowing. Contracts are not worth the paper they are printed on as we all know it is impractical to take these developers to court. The contract only applies if they can penalise you and get money out of you, not when payment is due to you.
They can issue any statement they like , it does not make it a fact based on reality.
Until there is accountability and real contractual law applicable to all companies, the state of uncertainty will continue in the U.A.E.
Posted by Philip, Dubai on Saturday 3 October 2009 at 10:02 UAE time
The real reason for a decrease in the number of dud cheques may well be the fact that no cheques or payments are being issued. The large developers ( we all know which ones) are not paying at all so the money has stopped flowing. Contracts are not worth the paper they are printed on as we all know it is impractical to take these developers to court. The contract only applies if they can penalise you and get money out of you, not when payment is due to you.
They can issue any statement they like , it does not make it a fact based on reality.
Until there is accountability and real contractual law applicable to all companies, the state of uncertainty will continue in the U.A.E.
DUd Cheques..
Posted by Honest Chappy, Dubai, uae. on Wednesday 30 September 2009 at 08:53 UAE time
It may have come down, because nobody is even willing to pay these days, never mind give a PDC...? there should be a law, one that some one will do something about to make companies pay there debts before 90 days, never mind 365????? its ridiculous...
Posted by Honest Chappy, Dubai, uae. on Wednesday 30 September 2009 at 08:53 UAE time
It may have come down, because nobody is even willing to pay these days, never mind give a PDC...? there should be a law, one that some one will do something about to make companies pay there debts before 90 days, never mind 365????? its ridiculous...
article lacks susbtance
Posted by gordon, dubai, uae on Tuesday 29 September 2009 at 09:27 UAE time
where is the comparison? Dud checks down on the third quarter vs second quartr. We know about the aed 8.6 mio for last year, but how many checks were involved? were they company checks or from individuals. How about the same criteria for reporting the 2nd and (not yet completed). Then once we have those numbers we would understand what is and what is not happening.
regards
Gordon
Posted by gordon, dubai, uae on Tuesday 29 September 2009 at 09:27 UAE time
where is the comparison? Dud checks down on the third quarter vs second quartr. We know about the aed 8.6 mio for last year, but how many checks were involved? were they company checks or from individuals. How about the same criteria for reporting the 2nd and (not yet completed). Then once we have those numbers we would understand what is and what is not happening.
regards
Gordon
Click here to post a comment
MORE FROM ARABIANBUSINESS.COM
TOP IN MIDDLE EAST BANKING & FINANCE
TOP MIDDLE EAST BUSINESS STORIES
ALSO IN MIDDLE EAST BANKING & FINANCE
LATEST MIDDLE EAST BUSINESS NEWS
- Banking & Finance: Islamic banks should target female market - report
- Travel & Hospitality: flydubai set to launch new flights to Nepal
- Real Estate: Dubai's Oct property sales value rises by 50% - official
- Politics & Economics: UAE considers allowing citizens to elect 50% of FNC
- Travel & Hospitality: Emirates brings forward Paris A380 plans
SHARE PRICE CHECK
RELATED STORIES
Gulf Rebound
3 stories- Dubai's Oct property sales value rises by 50% - official
24 Nov '09 | News - Mideast business jets market seen growing 6% for 10 years
24 Nov '09 | News - Gulf nations to see solid growth in 2010
23 Nov '09 | News
Dubai Police
| 172 stories- Senior traffic cop calls for licence age to be lowered
25 Oct '09 | News - Speed limit cushion set to drop for Dubai buses, taxis
19 Oct '09 | News - New police team to probe UAE financial crimes
14 Oct '09 | News
Mobile
