French bank accounts
The most important advice here is NEVER write a cheque out against your French account unless you are sure you have funds to cover it. Overdrafts do not normally exist in France, and this applies especially for non residents. All accounts must be operated in credit and it is against the law to write a cheque on your account if you do not have the cash on the account. Therefore if a shopkeeper accepts a cheque and sees proof of identity (all French citizens should carry their ID cards at all times) then he knows that the cheque is as good as cash. There is no such thing as a "cheque guarantee card" with the attendant frauds seen in the UK.
If you open an account in France, you will receive a cheque book once there are funds on the account and you should also request a "carte bleu", which is a debit card/Mastercard, similar to "Connect" or "Switch". As most traders use an automated swipe facility to check the funds and status of the card, many traders prefer this method of payment to cheques. The debit card bill can either be taken from the current account at the end of the month or debited immediately. You are given a PIN number which you tap into the machine when using the card - you do not sign a signature as in the UK.
If your account operates in credit all the time there should be no bank charges for operating the account. It is illegal to have cheques returned for lack of funds, the ultimate sanction is to become "interdite bancaire" or black listed by all French banks. The Banque de France maintains a computer record of any problem regarding a cheque or an account holder. This is maintained by law and if you do become "interdite bancaire" - the Banque de France will be informed. As every lender must check this bank data before lending, if you have had a problem, it is then impossible to borrow, as credit becomes totally unobtainable.
Banking law concerning cheques issued without provision of funds
The French Authorities decided in the annual review of laws on the 30th December 1991 to reinforce the protection system regarding the payment of debts by cheque. The new law came into effect on the lst June 1992 and it has set out the following outlines and objectives:-
As soon as the first incident of non-payment, the law requires that an "Interdiction Bancaire" be placed against all the persons accounts in all of the banks with whom he/she banks.
The drawer of the cheque may remedy the situation, and have the "interdiction" removed provided that.-
The "interdiction" will be removed, provided it is the first offence of the year and it is corrected within a month.
The fine can be doubled after three incidents in the 12 months following the first. If the problem is not regularised then the "Interdiction Bancaire" has to be maintained by law for a period of 10 years.
To be "Interdite Bancaire" means that it is impossible to borrow any money from any source In France whatsoever. It may also mean that it becomes very difficult to rent property and impossible to obtain a mortgage.
The law also states that certain financial offences may be punishable by a prison sentence, these include:-
Any person in France may verify, with the Banque de France, if a cheque has been lost or stolen or issued on a blocked account or issued by a person hit with an "interdiction bancaire". Therefore the fact that you are "interdite" may be known by anyone. So in France, as you can see you should not issue cheques if you are unsure that there are enough funds in your account. It is also illegal to issue postdated cheques.
