NBU has decided to change the requirements for Deposit and credit contracts

НБУ решил изменить требования к депозитным и кредитным договорам

The national Bank of Ukraine (NBU) has developed and offered to discuss new requirements for contracts between banks and their customers, which should ensure the proper disclosure of services.

As the press service of the regulator, the main goal of the new requirements – the consumer must be aware of the content of the contract, their rights and obligations under them.

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Accordingly, the agreement must contain full and clear information about the service, the main characteristics, the procedure for amending the tariff, a list of additional services, the customer’s rights and obligations, and the consequences of breach of contract.

Appeal of citizens to the national Bank show that there are several key issues in contracts between banks and customers, in particular:

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– silence on the rights of the client, for example, the possibility of a delay of payment, refusal of services, termination of the agreement, amendments thereto;

– failure to disclose adequately the consequences of the breach of the contract;

– definition of financial institutions at their discretion what information to provide and what to hold back.

The Central Bank noted that the new requirements of the NBU should fix such issues. Agreements for the provision of financial services, including treaties of accession, will also have to contain a uniform description of the services to better understand consumers.

The agreement on opening of Deposit would have to contain information about the Deposit retention period, the date of the refund, the law extending the term of the Deposit, the size of the offered interest, the manner of their payment and other information.

The consumer loan agreement must contain a list of conditions under which a possible change in interest rates or other charges, as well as information about costs for additional services in reference to all the rates and fees payable for them.

Most banks have changed the lending standard associated persons at the request of the NBU

The national Bank has identified a list of unfair terms that will be prohibited to include in contracts. In particular, the regulator proposes to prohibit to include in the contracts the following provisions that:

limit the ability of the customer to file a complaint on the performance of the contract by the Bank;

give the Bank to change the terms of services and prices without prior notification agreed between the parties communication channels;

give the Bank the right to demand from the customer payment for not rendered services;

entitle the Bank to demand early repayment of the loan without determining the contract notice to the customer of such requirement.

Very bad news from the Bank

In detail with the proposed requirements to contracts can be found in the draft Regulations on additional requirements to the contracts for the provision of financial services.

Discussion of requirements will run from August 17 until September 20, 2020. Your feedback can be sent by email to the following address: Consumer.Protection@bank.gov.ua.

Requirements for disclosure by banks of information about services in advertising and on the sites will start on 1 September 2020.