Debt recovery in Cameroon is regulated by the OHADA Uniform Act on simplified recovery procedures and enforcement measures of 1998 later revised in 2008. The mechanism for debt recovery in Cameroon being governed by the OHADA Uniform Act on simplified recovery procedures and enforcement measures is also applicable in 16 other African countries.
The law regulating debt recovery in Cameroon is structured into two books to wit: Simplified recovery procedures on the one hand, and enforcement measures on the other hand.
DEBT RECOVERY IN CAMEROON UNDER THE SIMPLIFIED RECOVERY PROCEDURE MECHANISM
Under the simplified recovery procedure mechanism, debt recovery in Cameroon is exercised in two facets; the traditional order to make payment, and the innovative order to deliver or to return an object. Both procedures are designed for easy applicability in a cost-effective manner and should allow a creditor quickly obtain what he is due. This should be the case so long as the debtor refrains from raising any spurious objections.
CONDITIONS FOR A CREDITOR TO OBTAIN AN ORDER FOR PAYMENT
The entire concept for debt recovery in Cameroon is for the creditor to recover his money. In this regard, the creditor has the right to seek redress from the competent court in Cameroon in order to obtain an order for payment against the debtor if the following conditions are met:
- The debt to be recovered in Cameroon is certain, liquidated and due, and
- The debt is a contractual debt or arises out of the issuance or acceptance of any negotiable instrument or of a cheque for which there is insufficient cover.
Once the above conditions are met by any creditor in Cameroon, the debt recovery process in Cameroon will be a successful one as a court order for payment will be obtained without objection unless there are other underlying issues touching on the contract in question.
CONDITIONS FOR AN ORDER TO DELIVER OR RETURN AN OBJECT
Debt recovery in Cameroon also applies to the recovery of an object under the simplified recovery procedure mechanism of the OHADA Law. Fewer conditions are laid down for orders to deliver or return an object. They are as follows;
- The object concerned should be identifiable, tangible and movable, and
- The applicant should consider that he is owed an obligation to deliver or return this particular object.
PROCESS OF DEBT RECOVERY IN CAMEROON
The procedure for either type of order as illustrated above concerning debt recovery in Cameroon is quite similar.
The first step for debt recovery in Cameroon is for the creditor to make an application to the competent court at the place of domicile or actual residence of the debtor, or to the court that may be otherwise designated by the parties’ contract.
The proceedings are ex parte, hence the debtor need not participate in them, and does not need to be informed that they are taking place.
If the court decides that the conditions have not been met and the application is unfounded, it will refuse to issue an order. This decision is not subject to appeal, but the creditor can only file ordinary proceedings to seek recovery of the debt or object.
If the process of the debt recovery in Cameroon is successful, that is it is well founded, it will issue an order. In the case of an order to make payment, this may be for a fraction of the amount claimed, if the court considers that the application is not partially well founded. The creditor may then pursue the balance of the debt in ordinary proceedings.
The order must be served on the debtor within three months of its issuance, failing which it will lapse.
Add comment