Debt collection from military personnel

With the beginning of the full-scale invasion of Ukraine, the lives of millions of Ukrainians underwent drastic changes. Many were forced to leave their usual life, everyday life and business because of mobilization to the ranks of the Armed Forces of Ukraine. In the conditions of martial law, being on the front lines, it is difficult for servicemen to control their civilian lives, in particular the issue of financial obligations.

Today, there are many cases when banks and other financial institutions initiate proceedings to collect debts from mobilized citizens who defend our country from the enemy.

Protection of servicemen-borrowers

In July 2022, the Verkhovna Rada of Ukraine introduced changes to the legislation on consumer lending aimed at settling the issue of debt repayment to banks by military personnel and members of their families under martial law.

According to the new regulations, creditors are prohibited from entering into any interactions with military personnel and members of their families regarding debt payment requirements during the period of martial law and within 90 days after its termination or cancellation. This ban applies to all types of credit obligations of the military to banks and other financial institutions.

Prohibition of charging penalties and interest for the military

The legislative changes prohibit the charging of penalties, fines or interest for the use of credit for mobilized servicemen during martial law and six months after its end. These norms are based on the provisions of the Law of Ukraine “On Social and Legal Protection of Servicemen and Their Family Members” and aim to ensure reliable legal protection for military personnel involved in the defense of the state.

The order of actions of military personnel to avoid the accrual of debts

One of the main problems faced by mobilized servicemen is the lack of information from banks about their status, due to which penalties and fines for overdue debts continue to be charged. To resolve this issue, it is necessary to provide the creditor bank with relevant documents confirming his official status.

Such documents include:

• A certificate of conscription for military service or an extract from the order of enlistment in the ranks of the Armed Forces, a copy of a military ticket with a note on enlistment (for reservists);
• Certificate of military service under contract in form No. 5 (for contract workers).

What to do in case of death or disappearance of a serviceman?

In the case of the death or disappearance of a serviceman, his family members must provide an appropriate certificate to confirm their status. For persons who are in captivity or are considered missing, as well as their relatives, information from a state-owned enterprise that performs the functions of a national information bureau is a confirmation.

Legal protection for servicemen-borrowers

If you have additional questions or your rights as a military borrower are being ignored, seek legal help. Specialists of the company “Prykhodko and partners” will provide you with comprehensive advice and help solve problematic situations.