New credit law: happiness for bankers and grief for borrowers?

New credit law: happiness for bankers and grief for borrowers?

Recently, the deputies of the Supreme Council adopted a law on the resumption of lending. 239 people’s deputies voted for the bill, which has many advantages for banks and financial institutions, but for the borrowers the number of risks has increased with innovation. But everything in order.

Today the bill № 6027-D is prepared for the signature of the head of the Supreme Council and the President and after the publication of the document in the “Voice of Ukraine” it will come into force. It is interesting that usually the laws are not retroactive, that is, the innovation does not apply to actions concluded contracts that were made before its appearance. With the law on lending is different and it will affect the old loans.

- The law has retroactive effect and worsens the situation of the citizen, which violates article 58 of the Constitution, which States that legal acts have no retroactive effect in time, except when they soften or cancel the responsibility of the person. Our organization has already appealed to the President with a request to veto the law and send it for revision, – said Mikhail Strelnikov, head of the public organization “financial Literacy of Ukraine”.

The law will help to fight negligent debtors who “earn” on loans. After all, in Ukraine the level of problem loans is 50% of the total number of loans, according to the national Bank and this figure is one of the largest in the world. Presumably, the strengthening of creditors ‘ positions in General should have a positive impact on the investment climate in the country.

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The advantage for borrowers is that banks will have access to registry Offices and the Unified register of powers of attorney. This innovation will save time and money of creditors who do not need to run and receive extracts from the registers, and even to certify them at the notary. Just do not need additional costs for a notary with a Deposit on the car, will now be enough a written contract with the Bank.

The innovation also introduces electronic contracts and the issuance of payment cards to authorized persons, but only the responsibility for the state of the funds rests entirely on the owner of the plastic.

The changes also affected the guarantors, the conditions for which have become more stringent. From now on, each guarantor should think a hundred times about mortgaging their property in support of the lender. After all, from now on, neither the expiration of the limitation period of the loan, nor the change in its size do not exempt it from liability. So, if you need to compensate for the damage, the expense will not only property bail, but everything else too. In addition, after the death of the guarantor, the debt is inherited without fail.

Not lucky as the heirs of the debtor, which is a heavy burden on the debts of a relative. Now financial institutions must declare the existing loan within 6 months, demanding payment of the loan.

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From now on, banks will be able to change the interest rate of lending. However, its maximum value must be specified in the contract. In this case, a person has the right to disagree with the increase, but in this case the debtor will have to repay the loan within 30 days. Clearly, taking a loan and using it for its intended purpose, it is unlikely that the borrower will be able to immediately return it. So that the person is a hostage of circumstances and forced to play by the new rules.

Of course, credit conditions need to be improved and changed, but it is also necessary to observe the parity between the rights of financial institutions and borrowers. Therefore, the next step to strengthen and protect the rights of consumers of financial services would be logical. Everyone is able to stay up to date with innovations in Ukraine, because the public is the lever that should control the government.

Julia Gutshabes

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