The issue of bounced cheques is really annoying and causes many financial problems that gravely affect trade stability and commercial transactions.
The Central Bank of Bahrain (CBB) report shows that nearly 8,000 cheques bounced during April and the amount involved was almost BD20 million.
This number of cheques and figure shows bad attitude and misuse of this very important commercial paper.
We feel that, many are not caring and deal with cheques recklessly and in fraudulent manner.
Afraid to say that, this tends to be a culture here and ultimately will yield bad image for a country that strives to be an important commercial investment hub.
An aggressive full-fledged awareness is needed from all related entities, coupled with tough penalties for habitual offenders.
In many places, worldwide, no company or any person being a businessman or otherwise will give any cheque before making sure that there is enough money to meet payment on presentation.
They take this issue very seriously to protect their names, ego, legacy, heritage, prestige and for many other reasons to show their deep respect to their personal image or business activity which they work hard to keep very clean from any negative thing whatsoever.
Cheques could bounce due to many reasons, in banks there is a list covering about 20 reasons, however most of the cheques bounce due to insufficient funds in the account.
Legally speaking, if a person issues a cheque without sufficient fund, this is a serious fraud crime with imprisonment. So please don’t sign your imprisonment warrant.
Other cheques bounce due to technical errors, like wrong signature, time lapse, unclear amount or bank branch, etc. In such instances, the bank returns the cheque for technical reasons in the body of the cheque.
However, some with bad intention, to save time or play around with the law, give a cheque that includes a technical error that will not enable the bank to process the cheque but return it back to the detriment of the beneficiary.
So, please have a good look at any cheque when given to you, so as to save your valuable time and to make sure that the document is in order, otherwise you see bad results at your cost and time.
Don’t help others to defraud you and if a cheque bounced, don’t hesitate to protect your legal rights.
The author is a legal consultant