UAE: Banks could reconsider lending to expatriates following bounced cheque case
Type
E-journal
Date
9 Aug 2012
Jurisdiction
United Arab Emirates, England, Northern Ireland, Scotland, Wales
Taxonomy
Financial Institutions, Financial & Business Offences, Extradition, Prosecution & Pre-Trial Procedure, Payment & Payment Systems, Conveyancing & Sale of Land, Mortgages, Sale of Land, Lending & Security, Civil Courts
Copyright
LexisNexis
Relevant company
Daily Telegraph
Will banks change their lending practices following failed extradition request?
Banking & Finance analysis: The United Arab Emirates recently failed in an extradition request relating to a British national who had returned to the UK, leaving her mortgage debt and a bounced cheque behind her. Richard Bell, Clyde & Co UAE partner, considers whether the case could lead to banks changing their practices.
Original news
Government of the United Arab Emirates v Allen [2012] EWHC 1712 (Admin), [2012] All ER (D) 14 (Jul)
The Administrative Court, in upholding the discharge of an extradition request, held that the respondent's conduct in the requesting state had not constituted an offence under English law.
Will this case lead to the restructuring of loans and financing for expats by the UAE banks?
Probably not. The practice of taking a blank cheque and having the borrower sign it is, effectively, a form of security. What typically happens if a debt goes unpaid is that the bank will write in an amount on the blank cheque, cash it and, if it fails, instigate criminal proceedings.