Cessation of accrual of interest on loans to military personnel

Today, when Ukraine defends its independence and territorial integrity, the issue of proper protection of the rights and freedoms of those who risk their lives on the front lines is of particular importance. Thanks to the heroism of the servicemen of the Armed Forces of Ukraine, we can continue to live in a free, democratic and sovereign state.

One of the urgent issues that needs to be resolved is the issue of military servicemen's credit obligations during martial law.

Cases of exemption of the military from paying interest on loans

According to current law, military personnel are exempt from paying fines, penalties and interest for using loans in two key cases.

First, such benefits apply to military personnel called up for service during mobilization or during a special period. They do not have to pay fines and interest for non-fulfillment of credit and other obligations to legal entities and individuals for the entire time of the draft.

Secondly, the exemption from these payments also applies to military personnel who directly took or are participating in measures to ensure national security, repel military aggression in the Donetsk and Luhansk regions. The benefit is valid for the period of their performance of combat missions in the OOS/ATO zone.

There is one important exception. Benefits do not apply to loans taken out by military personnel to purchase real estate (apartment, house, etc.) or a car. Interest continues to accrue on such loans.

Procedure for restoring rights under credit obligations

If the serviceman's rights to exemption from paying interest and other payments on the loan have been violated, there is a certain algorithm of actions to restore justice.

1. First of all, it is necessary to officially apply to the bank with a request to carry out a reconciliation of the balance owed on the loan and provide a certificate with a transcript of all charges - the body of the loan, interest, commissions, fines, etc.
2. The next step should be a written application to the bank for exemption from the payment of interest, commissions and fines in accordance with the law, as well as for the provision of credit holidays for the period of martial law.

In the event that the bank ignored or partially rejected these legal requirements, the serviceman must file a second complaint with the bank's management, attaching copies of the previous correspondence.

Provided that it was not possible to settle the issue at the level of the bank, the last resort is to appeal to the court with a corresponding lawsuit against the banking institution. During the consideration of the case, it is also possible to initiate the issue of temporary suspension of credit payments for the period of the legal process.

This sequence of actions allows servicemen to defend their legal rights guaranteed by the state during martial law.

Obtaining qualified legal assistance

If your rights as a military serviceman regarding the exemption from paying interest and other payments on loans have been violated, contact the lawyers of the company "Prykhodko and Partners" specializing in the protection of clients' rights in the field of banking and financial law.