Law news Victims of fraudsters will be reimbursed, and the process of obtaining credit will be further complicated

Victims of fraudsters will be reimbursed,  and the process of obtaining credit will be further complicated

Victims of fraudsters will be reimbursed and the process of obtaining credit will be further complicated


Recently, the National Bank of Ukraine published a draft document according to which banks will be required to return lost money by persons. victims of fraud.

What changes this Resolution carries for journalists Segodnya.ua lawyer, UC advisor "Riyako & Partners" - Alexey Panov.

Statistics show that the number of non-cash transactions is significantly higher than the cash transactions. However, it is not difficult to get your account through a card for fraudsters.

What changes are proposed by the National Bank in the Regulation:

 

  • After receiving notification from the customer, the bank must, as a matter of necessity, restore the balance of the account to the condition in which it was before performing such (unauthorized) transfer, but no later than the next business day. However, this can only be done if the bank has no doubt that the customer is responsible for the transaction;
  • The user incurs all losses related to the transfer, which is contested if the bank proves that the transaction was caused by the fault of the client (acts or omissions)
  • The issuing bank has the right not to refund the amount of 20 NMGD (UAH 350) If the transfer was made using the lost card or using the payment card incorrectly, the user simultaneously reported the payment.

How will banks recover lost funds?

In fact, today there is also a mechanism for recovering funds lost due to fraudsters. But it’s quite complex and needs a trial.
The Criminal Code of Ukraine provides that in case of unauthorized withdrawal of money from the customer’s account, the bank must immediately return the money, unless otherwise provided by law or a contract.
In addition, this issue is regulated by the Law "On Payment Systems and Money Transfer in Ukraine" and the NBU Resolution "On the Execution of Transactions with the Use of Electronic Means of Payment"  705 of 2014. If the Act stipulates that the bank must return the money to the customer within 90 days, the regulation states that the bank is responsible for returning the money only from the moment the customer informs it of the incident. So the bank is not responsible for the money that the fraudsters withdrew before the client claims it. This rule stipulates that the customer must inform the bank in advance, that the bank may be robbed and that money may be written off from the account. How this can be applied in practice is unclear, but it is precisely because of this contradiction that cases reach the courts, where banks can safely prove their case in accordance with the legislation in force.

If you lose your card, tell the bank!

It is unclear "how banks will prove that the loss was caused by the fault of the customer (except in cases of gross negligence: forgot the card in the ATM, gave the PIN code to an outsider, etc.)

The procedure for obtaining credit will also be complicated.

Another document of the National Bank to which attention should be drawn is National Bank Resolution 70 of 16 May 2019 "On approval of changes in certain legal acts of the National Bank of Ukraine".

According to this regulation, banks will be required to scrutinize their customers when granting loans and to take into account data from the NBU credit register, as well as all credit risks before issuing loans to citizens and businesses (In the past, banking institutions did not take into account the information from the NBU register when granting loans and decided whether or not to extend credit entirely independently). The bank will not ask you for any new documents.

But with the new rules, the banks:

Access to the NBU credit register;
will be able to request and exchange information on the credit rating of an applicant.
That is, now, in order not to be at risk and get rejected in the future, citizens need to be more attentive to their Wikoenn responsibilities for their inward lending in any banks.

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