Should I sign blank cheque?
A reader in Dubai asks: I would like to know if I should sign a blank cheque as a security bond for a credit card in the UAE. I was issued a credit card but the bank demanded I give an undated signed blank cheque. Is this legal? What is the UAE law regarding this?
As per Chapter 3 of the Commercial Transaction Law No. 18 of 1993, the bank has the legal right to demand a security cheque to guarantee providing the facilities of a credit card. But I advise the questioner to write the limit amount of the cheque such as (not to exceed Dh...) and not to sign a blank cheque.
Question answered by Advocate Mohammad Ebrahim Al Shaiba of Al Bahr Advocates and Legal Consultants.
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