THE BAN ON USING MEANS OF PAYMENT IN CAMEROON BY THE BANK
Issuing a check without sufficient funds, failing to pay a direct debit, falsifying payment methods, or committing fraud may result in a banking or judicial ban on issuing checks and using payment cards in Cameroon.
Anyone subject to such a ban in Cameroon may no longer issue checks or use payment cards, under penalty of criminal sanctions.
The institution that refuses payment of a check or direct debit due to insufficient funds must instruct the account holder, by any means that provides written proof of receipt, to return the checkbooks and payment cards in their possession, and, where applicable, in the possession of any joint account holders and their authorized representatives. This restriction is limited to the account on which the insufficient funds are found. The drawer, however, retains the right to use the checks and withdrawal cards.
The drawee must inform their client in the formal notice that they will regain the ability to issue checks and use a payment card if, after receiving this notice, they demonstrate that they have:
- Settled the amount of the unpaid check or established sufficient funds available and specifically allocated for the payment of said check by the drawee;
- Paid a discharge penalty under the conditions set forth in Article 201, unless the matter is resolved within thirty (30) days of the date the formal notice was sent.
If the matter is resolved, the drawee will issue a payment certificate to their client upon request.
The drawee must also inform the client that notwithstanding the regularization of the first incident, the client will no longer benefit from the thirty (30) day period in the event of a new incident occurring within twelve (12) months following this first incident, without prejudice to the provisions of Article 198 of the regulations.
If the incident is not rectified within thirty (30) days of the payment refusal, or if a new incident occurs before this rectification, the institution subject to these regulations must, by any means leaving written proof of receipt:
- Order the account holder to return to all institutions where they are a client the check forms and payment cards in their possession, and, where applicable, in the possession of any joint account holders and authorized representatives on the account;
- Also order the account holder to cease issuing checks and using payment cards for a period of five (5) days from the date the incident was recorded;
- Inform the client of their registration in a file kept for this purpose and of the communication of the above measures to all institutions subject to these regulations.
The drawee shall, if applicable and at the same time, inform the joint account holders and authorized representatives of their registration in the designated file.
If the incident is not rectified, a certificate of non-payment shall be issued to the check holder or the beneficiary of the direct debit authorization by the payee's bank.
The effective notification or, failing that, the service of the certificate of non-payment to the drawer by a bailiff or any person legally authorized to enforce the judgment constitutes a formal demand for payment.
The notary, bailiff, or person legally authorized to enforce the judgment, who has not received proof of payment of the check amount and fees within fifteen (15) days of receiving the notification or service, shall record the non-payment.
The notified certificate of non-payment is submitted to the chief clerk of the competent court or to the competent state judicial authority, who, without further procedural steps and without charge, affixes the enforcement order. The certificate of non-payment thus bearing the enforcement order constitutes an enforceable title.
All costs of any kind incurred due to the rejection of a check or a direct debit authorization for insufficient funds are borne by the defaulting customer.
The discharge penalty is not due when the account holder who recorded the incident or their authorized representative has not issued another check or authorized another direct debit rejected for insufficient funds within the twelve (12) months preceding the payment incident, and provides proof, within one month of the injunction stipulated in Article 196 (new), that they have settled the amount of the check or direct debit or established sufficient, available funds specifically allocated for said settlement.
Three-quarters of the discharge penalty is retained by the Central Bank and the remaining quarter by the Public Treasury. The procedures for collecting and remitting this penalty will be the subject of an instruction from the Governor of the Central Bank.
The penalty provided for in the preceding paragraph includes, for any incident not rectified within the prescribed time limits, a fixed portion of 50,000 CFA francs and a variable portion set at 5% of the amount of the unpaid check. The variable portion is 10% of the amount of the unpaid check that is the subject of the second incident and 20% for the third incident and each new incident that occurs within twelve (12) months of the first incident.
When the unpaid check has been issued by an agent, the banking ban implemented with respect to the account holder also applies to the agent in question, as well as to any other agents they may personally hold in any institution subject to these regulations.
The same penalty applies in the event of a withdrawal authorized by an agent.
When a payment incident is caused by any one of the holders of a joint account, whether jointly or severally, the provisions relating to banking bans apply to all holders of that joint account, both with regard to that account and with regard to any other accounts they may individually hold.
If the joint holders have previously and by mutual agreement designated one of them who, in the event of a payment incident on the joint account, will be the only one banned from all their accounts, they will only be banned from the account where the incident occurred, excluding any other accounts they may individually hold.
A banking ban is lifted when it was imposed due to circumstances beyond the drawer's control, particularly following a drawing error.
Disputes concerning the ban on issuing checks and the penalty for non-payment are referred to the competent court.
Legal action before the competent court does not have suspensive effect.
However, the competent court may, even in summary proceedings, order the suspension of the ban on issuing checks or using payment cards in the event of a serious dispute.