UAE Central Bank says blank cheque guarantees for banks illegal | GulfNews.com:
"A senior official at the UAE Central Bank on Wednesday confirmed that it is illegal to obtain blank cheques as guarantees to secure loans or credit cards issued by financial institutions and urged residents not to be pressured by banks into handing out blank cheques.
“More than 90 per cent of bank customers do not know that blank cheques cannot be used as evidence against them in a court case. The rules changed nearly one year ago, and while blank cheques were used as a bank guarantee against them, they are not any longer,” said the official.
The official explained that customers have the right to refuse issuing blank cheques to banks, and that if they are required to do so, they should request for a loan from another bank instead. He stressed that blank cheques issued to lenders cannot be used in court, and are considered illegal."
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