On the day the Verkhovna Rada of Ukraine introduced in the commercial code changes under which banks are prohibited to charge penalties, liquidated damages, penalties for late payments accumulated as for the quarantine period, and a 30-day period after its completion. If before such restrictions operated on the level of resolutions of the government and the National Bank, they are now enshrined in law.
However, there are still many questions regarding how provisions of the new law will be applied and what the debtor if their rights are violated by the Bank.
“In a period of quarantine to banks and financial companies are prohibited from raising interest rates on loans”
Tell us more about the new law, “FACTS” asked the managing partner of the Consulting company “Financial Studio” candidate of economic Sciences Eugene Nevmerzhitskiy.
In some cases, banks are prohibited to penalize borrowers under this bill?
– Banks are prohibited to impose sanctions in the period of quarantine without specifying restrictive conditions, that is, it applies to all borrowers. This is logical, as the consequences of quarantine has affected absolutely everyone, without exception.
– What penalties are subject to the provisions of the bill?
– There is a fine for late payments on consumer and mortgage loans. And about that banks must inform customers.
– Can banks change, in particular, to raise interest rates during the period of quarantine?
– No. In a period of quarantine to banks and other creditors, including various financial companies are prohibited from raising interest rates on credit agreements.
– Can banks charge penalties, that is to say, in hindsight? That is, after the lifting of the quarantine for the period of quarantine. After all, many borrowers during this time the debts still grow?
– To accrue penalties and to apply financial sanctions retroactively, banks have no rights under the law. I don’t think there is a problem by charging banks penalties for non-fulfillment or untimely fulfillment of its debt obligations by customers and it will be massive. However, a single precedent can be. In this situation, customers should have to actively defend their rights through complaints to the regulator lawsuits.
However, until now, created a specialized division of the Bank to protect the rights of consumers of financial services shows quality work. Also, the court system wouldn’t work better, the courts are still inundated with mass claims, which are not considered due to excessive loading of the institutions. Therefore, you should accept the risk of charges of illegal sanctions banks for a period of quarantine, and the solution to this problem rests on the shoulders of the clients themselves.
I can only repeat that people need to use all methods to protect their rights. And if the NBU ignores customer complaints or write-offs, you should ignore the illegal requirements of banks or financial companies, clearly defending his position, in writing, at least in correspondence with the Bank-offender. The Bank also understands that illegal to defend position in court is expensive and unpromising, therefore, most likely, will relinquish and abandon the unlawful claims.
Effective way – to go to another Bank that will do people. And the loss of a customer is the most tangible punishment for the Bank that wrongfully uses his position. Therefore, one should not rush to pay wrongfully assessed fines for the purpose of preservation of relations, for which the offending banks and counting.
“Customers should look for a solution together with the Bank in an individual order”
– How the Bank will determine what the debt relates to a period of quarantine?
Quarantine measures have clear periods established by the Cabinet of Ministers of Ukraine. However, the financial difficulties incurred by the customers of banks and financial companies because of quarantine measures that do not disappear on someone’s decision, immediately after the termination of the quarantine or loosening. To do this, and a period “after” (to restore the financial situation), during which it is impossible to accrue fines.
These financial difficulties do not necessarily disappear from all customers and after the expiration of the statutory time limit after the quarantine, in which it is impossible to accrue fines. Moreover, the majority of clients this situation will be.
Therefore, they should look for a solution together with the Bank individually, with an emphasis on the payment of the principal debt. In the professional tasks of the Bank includes the ability to distinguish a trustworthy client who intends to carry out his obligations, the borrower who deliberately uses the situation of the pandemic to delay payments.
The best solution for the banks would waive any penalties for late payments to the end of the year and try to help clients restore their financial situation.
Under the current court practice, in most cases, at the trial, even during a pandemic, the Bank can obtain a judgment in their favor on payment of the basic debt and interest without penalties. And now about the penalties for late payments through the court, banks should forget.
– Can the debtors in a difficult financial situation due to quarantine, to rely on debt restructuring?
– Debt restructuring is the most effective and right solution in this situation. The law it is impossible to determine General rules for the entire market for debt restructuring because in each case the solution depends on the creditworthiness of the customer, his wishes to fulfil in good faith its obligations previous credit history.
The professionalism of the Bank or other financial lender and is to effectively conduct credit policy, which is the ability to individually assess credit risk through a broad list of procedures and does not automatically accrue penalties, not tackling the causes of delayed payments.
It should also be noted that in Ukraine for more than 14 years working for the Institute of credit Bureau with the highest quality services at the international level. This means that banks have comprehensive information on credit histories of clients that they are to use for quality lending. In any case, the quality of lending is not automatic accrual of penalties.
The customer’s credit history gives a fairly detailed description of the previous payment discipline, on what basis can we conclude about the conditions of debt restructuring. Than better previous credit history, the more favorable the terms of restructuring must offer to the client. As the fact of consideration of restructuring depends on credit history.
Banks that do not examine credit history and do not allow it in the relationship with clients should be avoided because of their low professional competence and to give preference to those who are able to value reliable clients based on their credit history.
Quality work credit bureaus and banks encourages customers to timely fulfill their loan obligations. Ukraine has enough banks that are able to carry out its work, these banks and should be preferred. On the other hand, should leave banks using the difficult financial situation of customers that have arisen not on their fault for improper benefits – summed up Eugene nevmerzhitskiy
It should be noted that the state is also trying to solve the problem of debts for housing and communal services, however, is very original. So, on may 20, the Verkhovna Rada adopted as a basis the draft law, which the Executive services want to allow to open the doors in the apartments of defaulters and disconnected from utilities.
The Verkhovna Rada