By Shane McGinley
From May 13 any cheque will be cashed by the bank on the date it is deposited.
Post-dated cheques are to lose their legal cover in Qatar from May 13, according to a report on Sunday.
Up until May 12, any cheque presented to a bank in Qatar could not be cashed until the date specified. However, from May 13, any cheque will be cashed by the bank on the date it is deposited, according to a report in the Qatari daily newspaper The Peninsula.
Some lawyers, such as Mohamed Ahmed Al Ansari, said the country was not ready for do away with post-dated cheques and have called for an extension to the original law.
“I think the authorities might have to delay the enforcement of the law once again as is the case with several other Arab countries. We are not yet ready for a system sans post-dated cheques,” Al Ansari added.
However, fellow lawyer Mohsin Thiyab Al Suwaidi said it was time for the usage of post-dated cheques to come to and end.
“We must learn to live without post-dated cheques. The law provides enough safeguards to people who need such cheques as a guarantee of future payment,” he said.
However, Al Suwaidi did acknowledge that an exception should be made for those using post-dated cheques to pay their rent.
This is a good move. This is like being realistic when doing business. Buy only what you can afford to pay. Speculations only for the right investors. PDC and unwanted credit lines are the prime reasons why recession has hit the middle class and above categories.
i wonder how a tenant is going to pay for his rent in qatar has he to pay the full amount in 1 go or pay-as-u -stay? well the latter is a good thing on the other hand there will be a lot of homeless around...
@Eddie, trust me that is the least one has to worry about. There will always be a way any tenants rent will collected by the landlord because that applies not only to people at lower pay scales but also to the ones at the tops. Avoiding PDCs avoids people gaining spending power they dont even have.
I am surpised that cheques are still so widely used in GCC. In the UK, I have not used the cheque for last 7 years. All banks have capability of doing transactions electronically, so why not do that? e.g. a Tenant can pay his / her rent via Direct Debit or Standing Order monthly. Why it has to bepaid for whole year in 1 go? This only stimulates un-necessary borrowing. A credit check system should be in place which should take into account, salary , loans, missed payments and applications for loans and provide rating to each individual over the age of 18. Based on that info, landlord could decide if they want to rent their house to a particular person and if that person will be able to full fill his / her commitment. I know that this system works, becuase i am a Landlord my self in the UK and this is how i choose my tenants. There are also insurance ploicies available to landlord to cover for missed payments from tenants and also for legal costs, should they need to evict them.