Complaint to the NBU Against an MFO

Complaint to the NBU Against an MFO

A complaint to the National Bank of Ukraine against an MFO is one of the mechanisms for protecting the rights of financial services consumers where a microfinance or other financial company violates legal requirements during lending or collection of overdue debt. The National Bank regulates and supervises non-bank financial institutions and also monitors compliance with requirements concerning protection of financial services consumers. A complaint to the NBU may be appropriate if:

• the company demands payments that are not provided for in the credit agreement;
• the debt has been calculated incorrectly;
• the company does not provide information on the structure of the debt;
• requirements concerning the interest rate or total cost of credit are violated;
• the consumer was misled about the lending terms;
• financial services advertising rules are violated;
• the debt was transferred to a collection company in violation of established rules;
• threats, pressure, or other prohibited methods are used during collection;
• the MFO or collector violates the rules for interacting with the consumer.

A complaint to the NBU is not a way to automatically write off a lawful debt. Its purpose is to inform the regulator about a specific violation of legal requirements and provide documents that allow the violation to be reviewed.

When You Can File a Complaint Against an MFO

The mere existence of a loan, overdue payment, or demand to repay a lawful amount of debt is not itself a violation. Grounds for a complaint arise where the actions of the financial company do not comply with the agreement or legal requirements. For example:

• the client is charged a fee not provided for in the agreement;
• the company demands payment of an amount whose origin it does not explain;
• a full debt calculation is not provided;
• the agreement or advertising contained incomplete or misleading information;
• information about the debt is disclosed to third parties during collection;
• a collector or MFO employee uses unlawful communication methods;
• the financial company does not respond to a substantiated written claim.

Benefits of Working with Prikhodko & Partners

Before contacting the regulator, we check whether the financial company’s actions actually contain a legal violation. Our lawyers help:

• analyze the credit agreement;
• check the principal debt and accrued amounts;
• review the interest rate and payments;
• identify the new creditor or collection company;
• document violations during debt collection;
• prepare a claim to the MFO;
• prepare a legally reasoned complaint to the NBU;
• compile the evidence package;
• analyze the National Bank’s response;
• determine the next legal protection strategy.

Unlawful or Unclear Charges by an MFO

Before challenging the amount of debt, it should be broken down into its components:

• principal;
• interest;
• commissions;
• fines and penalties;
• other payments.

The Law of Ukraine “On Consumer Lending” establishes requirements concerning information about the cost of credit and calculation of the daily interest rate. Current legislation provides for a maximum daily interest rate of 1%. It is also prohibited to demand payments from the consumer that are not specified in the agreement and are not included in the statutory calculation of the credit cost. Therefore, when preparing a complaint, it is not enough simply to state that “the interest is too high”; a legal calculation should be carried out and the specific inconsistency identified.

Complaint About MFO Collectors

The law establishes special rules for settlement of overdue debt. A collection company operating in this area in cases provided by law must be included in the relevant NBU register. The MFO, new creditor, and collection company must comply with ethical conduct requirements. When dealing with a debtor, the following are prohibited, among other things:

• threats;
• humiliation;
• rude or insulting conduct;
• misleading a person;
• excessive interaction;
• unlawful disclosure of information about the debt;
• other forms of pressure prohibited by law and NBU regulations.

The NBU may apply specific enforcement measures to collection companies, including a temporary prohibition on collecting overdue debt and removal of the company from the register in cases provided by law.

What to Request from an MFO Regarding the Debt Calculation

If the amount of debt is unclear, it is advisable to request a detailed breakdown in writing. The request may seek information about:

• the remaining principal;
• the overdue principal amount;
• accrued interest;
• overdue interest;
• commissions;
• fines and penalties;
• other payments;
• the legal and contractual basis for each charge.

NBU regulations require a lender, new creditor, or collection company in certain cases to provide information on the amount of overdue debt by its individual components upon the consumer’s request.

Should You Contact the MFO First?

The National Bank recommends first attempting to resolve the issue directly with the financial institution. In practice, this means:

1. prepare a written claim;
2. describe the specific violation;
3. request a calculation or correction of the error;
4. retain proof of sending;
5. obtain the response or document the absence of one.

If the issue is not resolved, these materials become additional evidence for the complaint to the NBU.

Which Documents Should Be Attached to the Complaint to the NBU?

The better the situation is documented, the easier it is for the regulator to understand the substance of the violation. Depending on the circumstances, the complaint may include:

• the credit agreement;
• the consumer credit passport;
• additional agreements;
• the MFO’s debt calculation;
• bank receipts;
• payment statements;
• a claim sent to the financial company;
• the MFO’s response;
• correspondence;
• screenshots of messages;
• information about the collection company;
• other evidence of violations.

How to Properly Write a Complaint Against an MFO

The complaint should be specific. It is advisable to state:

• the applicant’s full name;
• place of residence;
• contact details;
• the name of the financial company;
• the number and date of the credit agreement;
• a brief chronology of events;
• the nature of the violation;
• when the applicant contacted the MFO;
• what response was received;
• which documents support the stated circumstances.

The complaint should not be overloaded with emotional assessments. It is much more effective to present the issue as: agreement term → MFO action → specific violation → evidence → request to verify compliance with the law.

How to File a Complaint with the National Bank

The National Bank accepts complaints from financial services consumers. Depending on the available channel, a complaint may be submitted:

• through the NBU electronic form;
• in written form;
• through other methods provided by the NBU.

The complaint should contain sufficient information for the regulator to identify the applicant, the financial institution, and the nature of the problem.

How Long Does the NBU Consider a Complaint?

A standard complaint is considered within 30 days. If the issue does not require additional review, a response may be provided within 15 days. If the issue cannot be resolved within one month, the period may be extended, but the overall consideration period should not exceed 45 days.

What Can the NBU Do After Receiving a Complaint?

The National Bank supervises protection of financial services consumers. Where violations are established, statutory enforcement measures may be applied to the financial institution or collection company. At the same time, it is important to understand the limits of the regulator’s authority. The NBU:

• reviews matters within its authority;
• monitors compliance with legislation on the financial market;
• may apply enforcement measures provided by law;
• maintains relevant registers of participants in the non-bank financial market.

However, the NBU does not replace a court in a private-law dispute between a borrower and a creditor. A consumer complaint also does not automatically trigger an unscheduled inspection of the financial institution.

What a Complaint to the NBU Cannot Do

A complaint should not be filed with the expectation that the NBU will automatically:

• cancel the credit agreement;
• declare the agreement invalid;
• write off the lawful principal debt;
• stop court proceedings;
• cancel a court decision;
• terminate enforcement proceedings.

Such results may require negotiations, court protection, or other legal mechanisms.

What to Do If the MFO Has Already Filed a Lawsuit

If the creditor has gone to court, a complaint to the NBU does not replace defense in the court case. It is necessary to separately:

• obtain the claim or another procedural document;
• check the debt calculation;
• analyze the credit agreement;
• verify assignment of the claim if the creditor has changed;
• prepare a statement of defense and evidence;
• raise the appropriate objections.

The NBU complaint materials and the regulator’s response may form an additional part of the legal position, but the court defense strategy is developed separately.

What to Do If the Debt Was Transferred to Another Company

The borrower should establish:

• who the current creditor is;
• on what basis the claim was transferred to another company;
• who exactly is contacting the debtor;
• whether that entity is a collection company;
• whether it is included in the relevant register where required;
• what amount it demands;
• how the calculation was formed.

Payments should not be made solely on the basis of a telephone demand from an unknown person without verifying the legal basis.

Stages of Legal Support

1. Agreement analysis. We review the loan terms and payments.
2. Debt calculation. We separate principal, interest, commissions, and penalties.
3. Creditor verification. We identify the MFO, new creditor, and collectors.
4. Documentation of violations. We collect correspondence, messages, and other evidence.
5. Claim to the MFO. We demand an explanation or correction of the violation.
6. Complaint to the NBU. We prepare a legally reasoned submission.
7. Response analysis. We determine the next legal protection strategy.
8. Court representation. Where necessary, we represent the client in a dispute with the creditor.

Cost of Preparing a Complaint Against an MFO

The cost of legal assistance depends on the complexity of the credit history and the volume of documents. The price is affected by:

• the number of loans;
• the number of MFOs;
• the amount of debt;
• the volume of accrued charges;
• the involvement of collectors;
• the need for a detailed recalculation;
• the amount of evidence of violations;
• the existence of court proceedings;
• the need for further court representation.

Common Situations in Complaints Against MFOs

Conclusion

A complaint to the NBU against an MFO is an effective regulatory mechanism where it is based not merely on disagreement with the debt, but on a specific violation of consumer lending legislation and financial services consumer protection requirements. Before filing, it is advisable to review the agreement, debt calculation, creditor, and collector, document the violations, and attach materials that allow the NBU to objectively assess the situation.

Is an MFO calculating the debt incorrectly, demanding unclear payments, or are collectors violating debt collection rules? Submit a request on the Prikhodko & Partners Law Firm website. A lawyer will review the credit documents, identify the violations, and prepare a substantiated complaint to the National Bank of Ukraine.