Write off penalties and fines

Penalties and fines should not be greater than the debt itself. We will help you with thisUgrin Svyatoslav

In connection with the difficult economic situation in the country, nowadays the question often arises: “How to write off penalties, fines, and other penalties on a loan?”. So, during the late payment of the loan, penalties begin to be applied to the debtor, which in most banks are quite tough and can exceed the body of the loan.

Firstly, it should be said that there is a limitation of the debt, it is three years, if the bank has not filed a claim for recovery of funds within three years, then the debtor only needs to declare in court that the limitation period has been missed, in connection with which the case is closed.

The debtor must independently take the initiative to the bank in the matter of debt repayment.Ugrin Svyatoslav

Important! If the borrower has a loan in US dollars or euros, the forfeit is in any case charged in hryvnia at the NBU rate on the day the forfeit was charged. It should be noted that the amount of the penalty currently cannot exceed the double rate of the NBU in effect for the period for which the penalty is paid.

In the event of a debt (penalty, fine) in connection with late payment of the debt, all relations arising between the debtor and the bank should be transferred in writing, thus the message coming from the bank can be used as evidence in court.

When the debtor violates the conditions prescribed in the agreement, the bank begins to charge fines, in which case it is necessary to take the initiative into their own hands and contact the bank to prevent further additional accrual of fines. So, when contacting the bank, the debtor can submit a written application with a request to write off the fines, in which he indicates the justified reasons for which there was a non-payment of the loan. The borrower needs to confirm that he is in a difficult financial situation, which caused a serious illness, dismissal from work, and so on.

Reduction of a forfeit by a court decision

The Civil Code of Ukraine indicates that the amount of the penalty can be reduced by a court decision, provided that the penalty significantly exceeds the amount of losses. So, in order to reduce the amount of the penalty, the debtor must submit a written application to the court, with a package of documents confirming the difficult financial situation. Taking into account the materials of the case presented to the court by the borrower, the court, at its discretion, reduces the amount of the penalty. In practice, the court can reduce the amount of the penalty even below the amount of the main obligation and losses.

It is quite possible to write off penalties and fines; it is quite possible to defend your legal rights with the help of professional lawyers. Our experts in the field will help you with this.

Write off penalties and fines

Write off penalties and fines