Does a bounced cheque affect my credit record in the UAE?

A bounced cheque can have consequences beyond the immediate dispute, including potential effects on how your financial reliability is viewed. The UAE has a credit-reporting system operated through the Al Etihad Credit Bureau (AECB), which compiles financial information used by banks and lenders to assess creditworthiness. Negative events linked to your accounts and obligations can be reflected in your credit profile and may affect future borrowing, even after the cheque law was reformed in 2022 to treat ordinary bounces as civil rather than criminal matters. In other words, decriminalisation did not remove the financial and reputational impact of failing to honour a cheque. The most protective approach is to resolve any unpaid cheque promptly and keep proof of settlement. If you believe your credit record contains an error, the AECB has processes to review and correct information. Because exact reporting rules are set by the bureau and lenders, confirm specifics directly. For help resolving the underlying debt or related disputes, you can compare verified UAE legal professionals on LEXAI.