Some Ukrainians don’t have to pay penalties and interest on loans

Banks should not charge military personnel the loan interest and penalties for late payment during military service.

Некоторые украинцы могут не платить штрафы и проценты по кредитам

This reports the analytical portal “Hvilya”.

In explaining the National Bank of Ukraine on the official portalguard that received more than 100 complaints of soldiers who complain of charging banks interest for their loans during the period of military service. At the beginning of 2020, such appeals became more frequent. All the soldiers complained to the NBU for 17 banks.

As noted in the NBU with the relevant requirements of legislation are contained in the law “On social and legal protection of servicemen and members of their families” (paragraph 15 of article 14).

“This means that the loan serviceman actually “frozen” at the time of passing of the military service. The military has the ability to temporarily not to pay the loan, and the Bank does not calculate interest and penalties for late payments,” — noted in the NBU.

What makes NBU injustice?

The national Bank on 14 February 2020 was sent to the banks further explanation on the fulfilment of requirements of the legislation of Ukraine, namely the non-accrual of interest, penalties and interest credits for professional military and contract employees from the beginning of the special period (18 March 2014), and mobilized the military — from the date of mobilization.

For each case of violation, the Department for the protection of the rights of consumers of financial services the National Bank has reached out to banks with the requirement to resolve the situation.

Approximately 60% of cases the problem was solved positively for consumers — banks have written off wrongfully accrued interest. The remaining cases until resolved.

The national Bank will verify the rights of servicemen of the two banks, which were complained about most often, as planned in the current year audits of these banks.