Collection of loans (debts) from military personnel during the war – is it legal and how to appeal?

According to current legislation, military personnel have privileges for credit obligations. Of course, they are not exempt from repaying debt. Military personnel can count on the absence of penalties for late payment on a loan, “credit holidays”, etc. However, in practice the situation is different. In this article, we will consider a relevant issue: debt collection from military personnel during the war - is it legal and how to appeal?

Legislative framework

In conditions of full-scale war, a rather big problem arose with the credit obligations of military personnel. Most banking institutions require urgent fulfillment of the terms of providing credit funds, despite the fact that the person is on the front line.

It should be noted that banks have the right to demand the return of credit funds. In some cases, representatives of banking institutions file lawsuits in court, initiate the seizure of property, accounts, etc. That is why the lawyers of our company “Prikhodko & Partners” do not recommend ignoring the message from the bank. First, you need to carefully familiarize yourself with the terms of the loan agreement, account statement, etc. In the future, you should choose the most effective algorithm of actions. For example, you can contact a financial institution with an application to start debt restructuring. That is, the bank can change the terms of loan repayment, making them more accessible to the serviceman. To restructure the debt, an appeal to the court is not required.

Part 15 of Article 14 of the Law of Ukraine “On Social and Legal Protection of Servicemen and Members of Their Families” states that fines, penalties, and interest for using a loan are not accrued to servicemen. However, this does not happen automatically. In order to be able to use the benefits, a person must contact the bank, write an application in the established form, and provide documents that will confirm the relevance of the information provided.

Important: the specified benefits apply only to interest and penalties. The principal amount of the debt remains unchanged. The Law also stipulates that the benefits do not apply to the purchase of real estate (for example, housing), cars.

Regarding the issue of forced debt collection. According to current legislation, no financial institution in Ukraine has the authority to demand the return of a loan from a serviceman (provided that all documents for receiving benefits have been provided).

During the period of martial law and within 90 days from the date of its end, a veto is in effect on the demands of bank representatives, collectors, etc. for the return of loan funds.

Who is covered by this benefit? We are talking not only about active servicemen, but also about:

1. Persons who were injured and have disabilities due to military operations.
2. Family members of deceased servicemen.
3. Persons who have a special status (prisoners, missing persons).

Please note: the above benefit does not apply to taxes or alimony. So, to obtain a "credit vacation", you need to contact the financial institution that provided the loan.

What to do if the bank does not make concessions?

If a serviceman who has applied to a financial institution, written a statement, provided the necessary documents and has not received the desired result, the only solution will be a judicial procedure for considering the case. One of the measures to secure the claim is a request to the court to temporarily suspend the accrual of payments under the contract. The lawyers of our law firm "Prikhodko & Partners" will help to draw up, formalize and file a claim.

At the stage of pre-trial settlement, our lawyers apply to the National Bank of Ukraine. It is this institution that supervises financial organizations (both banking and non-banking - collection companies, etc.) regarding their compliance with the norms of current legislation.

Remember that there are no situations that cannot be resolved. Our specialists provide the necessary advice and full legal support. Effective communication with financial institutions requires professionalism and efficiency. Do not delay in solving urgent problems!

And although the financial debt of a military person is not canceled, the pressure from bank representatives, collectors, and creditors is significantly reduced. The state protects military personnel from forced debt collection. Our lawyers eliminate any attempts by creditors to “press” on debtors both pre-trial and in court. We will be able to protect your legal rights!

Do you have any more questions? We are waiting for a preliminary consultation in a format convenient for you (offline or online)! To calculate the cost of a lawyer’s services on financial issues, fill out the form below.