LENDER OBLIGATIONS (OBLIGATIONS OF PARTIES TO A CREDIT TRANSACTION)

According to law No. 2019/021 of 24 December 2019 to lay down some rules governing credit activities in the banking and Micro-Finance sectors in Cameroon,

Credit providers shall be required to offer their customers products and services tailored to their needs, taking into account their repayment capacity in order to avoid any risk of loan default or debt distress.

They shall also be bound to communicate to customers, on a regular basis, complete information on the cost and quality of the products and services offered them.

In the event of a prior loan offer, the credit provider shall be required to provide any pre-contractual information to inform the customer’s consent.

Credit providers shall be required to provide information to borrowers to help the latter determine whether the proposed loan is tailored to their needs and financial position.

Prior to the borrower’s commitment, credit providers must disclose to the borrower the draft credit agreement, the overall effective rate (TEG), the attrition rate and the amortization schedule of the proposed credit transaction.

Once the credit agreement is signed, the credit provider shall be required to provide to the borrower a copy of the said agreement, the overall effective rate (TEG), the attrition rate and the amortization schedule of the credit transaction.

Credit providers must publish the tariff conditions and display them conspicuously in their offices, counters or branches.

In each credit agreement, and in any advertisement of loans, credit providers must clearly specify the substance of the loan commitment for the borrower and the resulting repayment obligations.

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