What is the Prohibition of Issuing Checks and Opening a Checking Account?
The ban on issuing checks and opening a check account is a sanction imposed on those who draw bad checks, regulated in Article 5 of the Check Law No. 5941. According to this prohibition, upon the complaint of the holder, a decision may be taken to prohibit the person who received a bounced check from issuing a check or opening a check account.
Scope of the Prohibition:
The duration of the ban may be extended until the expiration of the prohibitory period, that is, 6 months.
The person who falls within the scope of the ban must return all check sheets in his possession to his banks.
A new checking account cannot be opened in this person’s name.
In case of violation of the prohibition, a judicial fine will be imposed.
Reason for the ban:
The main reason for this ban is to maintain the reliability of the check as a means of payment and to prevent bounced check transactions. Bounced checks constitute a significant problem in business life. For this reason, legal sanctions are envisaged in order to deter such transactions.
Implementation of the Ban:
In order for the ban to be implemented, a complaint must be made by the holder. Upon complaint, the necessary investigation is conducted by the Public Prosecutor and a decision is made to impose a ban. If a ban is given, the decision is notified to the relevant person by notification.
Lifting the Ban:
In order to lift the ban, the person concerned must wait for the limitation period to expire and pay his debt. If the debt is paid, the Public Prosecutor decides to lift the ban.
Effects of the Ban:
The ban on issuing checks and opening a checking account can have significant negative effects on the person receiving the ban. Some of these effects include:
Difficulty in commercial activities: The person who receives the ban may have difficulty in carrying out his commercial activities because he cannot make transactions using cheques.
Difficulty accessing bank loans: The ban on issuing checks and opening checking accounts may pose an obstacle to loans by banks.
Damage to social and commercial reputation: A bounced check may damage a person’s social and commercial reputation.
