'Forced' blank cheque illegal

The Central Bank has warned the country’s 51 banks against forcing their customers to sign blank cheques in exchange for specific services, saying such an act violates the personal loan regulations.

An unnamed Central Bank official, quoted by the Arabic language daily Emirat Alyoum, said the new department would deal with soaring public complaints about malpractices by banks regarding personal loans and other services.

“Banks must not make their clients sign blank cheques in return for any services or facilities…these measures constitute a clear violation of the newly-introduced personal loan system,” the official said.

“We call on all clients not to sign any cheque which does not define the sum or does not carry clear numbers and letters….in case any bank insists on this signing, clients should submit a complaint to the Central Bank.”

The official said the new complaints unit would be autonomous, adding that the plan had been prompted by a sharp rise in complaints about such practices.

Emirat Alyoum said the plan follows repeated complains by clients about long delays by the Central Bank in addressing their problems.

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