Complaint to the NBU against the MFI

Clients of microfinance organizations (MFIs) may encounter situations where the terms of the credit agreement are violated or illegal methods of debt collection are used. Such violations include, but are not limited to, unfair interest rates, forced debt collection by debt collectors, or hidden fees. In such cases, citizens can file a complaint with the National Bank of Ukraine (NBU), which since 2020 is the main regulator for all financial institutions, including MFIs. In this article, we will consider how to properly file a complaint with the NBU against an MFI, when it is appropriate to do so, and what results can be expected.

When should you file a complaint about MFIs with the NBU

The NBU considers citizens’ complaints only in cases of violation of legislation or clients’ rights. Accordingly, if the MFI acts within the law and tries to collect the debt correctly, the complaint will be inappropriate. However, if violations are observed, you have the right to file a complaint.

Reasons for applying to the NBU may include:

• No license. If the MFI does not have a license to carry out financial operations, such activity is illegal. Contacting the NBU will help verify the license and legality of the company’s activities.
• Unreliable information on the website. The law obliges MFIs to honestly inform clients about credit terms, commissions, interest and possible sanctions. If you have been misled by providing false terms, this is also grounds for complaint.
• Illegal interest rate increase. Changing the terms of the contract without your knowledge or consent is a violation of consumer rights. The interest rate must be clearly specified in the contract, and it cannot be changed unilaterally.
• Aggressive debt collection methods. Collectors or employees of the MFI have no right to threaten, humiliate, or contact the borrower at prohibited times.
  Illegal charging of fines and commissions. If fines and penalties significantly exceed the body of the loan, this may indicate a violation, because the Law of Ukraine “On Protection of Consumer Rights” protects customers from excessive financial obligations.

These and other situations are clearly regulated by current legislation, and the NBU has the right to impose sanctions on MFIs in case of proven violations.

How to properly file a complaint against an MFI for the NBU

Before filing a complaint, prepare all the necessary documents to substantiate your appeal. Here are the basic steps:

• Check the terms of the contract. Read the contract again and pay attention to the terms that you believe have been violated. If you need help, consult a lawyer who will explain your rights and responsibilities.
• Collect the documents. In the process of preparing for filing a complaint, collect copies of contracts, receipts, correspondence with MFIs, account statements.
• Prepare copies of correspondence with the MFI. All e-mails, letters from the organization or responses to your requests are important documents. They will help confirm that you tried to resolve the situation directly with the MFI.

After collecting the necessary documents, make an official application to the NBU.

How to file a complaint about an MFI to the NBU

You can file a complaint with the NBU in several ways:

• E-mail: The NBU provides special electronic forms for submitting applications that allow you to attach all the necessary documents.
• Hotline: For the convenience of clients, the NBU provides an opportunity to contact a hotline, where specialists will advise you on further actions.
• Written application: If you prefer a traditional postal application, it can be sent along with copies of documents.

In the complaint, indicate your full name, contact information, place of residence and briefly describe the essence of the violations committed by the MFI. Attach to the appeal all the collected documents to substantiate your claims.

Deadlines for consideration of complaints at the NBU

The National Bank of Ukraine considers citizens’ appeals within 30 days from the date of receipt. If the question does not require additional checks, the answer can be provided within 15 days. In complex cases, when a more detailed analysis or additional verification is required, the term can be extended up to 45 days. The NBU notifies the applicant of the extension of the terms with an explanation of the reasons.

The NBU does not consider anonymous applications, since the lack of data on the applicant makes a full review impossible. Also, repeated appeals are not accepted if the previous complaint has already been resolved. In the event that the application contains insufficient information or documents, the NBU may return it with a request to provide additional data to ensure an objective review.

What to do if you are not satisfied with the NBU’s answer

If the NBU makes a decision that you are not satisfied with, you can use other legal protection mechanisms. In particular:

• Appeal to the court. If the situation is serious and needs further resolution, file a lawsuit. If necessary, consult a lawyer who specializes in financial disputes.
• Appealing the actions of the MFI. Consider other legal avenues to protect your rights, such as claims for violation of your rights as a consumer or claims against MFI representatives.

Protecting the rights of consumers of financial services is an important part of the NBU’s work, and by filing a complaint with documents confirming the violation of rights, you can achieve justice.