Is it true that servicemen and their wives/husbands can avoid paying back the loan? No, the loan must be repaid. But there are benefits. Lawyers of the free legal aid system explain which ones and how to use them.
Servicemen and their spouses have the right not to pay
– interest on the loan;
– penalties for late payments;
– penalties for default for the duration of the special period.
Not only banks, but also credit unions, pawnshops, and other financial service providers should provide benefits.
Exception: if it is a loan for a car, house or apartment, you will have to pay interest on the loan, as well as accrued insurance payments, fines or penalties. Because these benefits do not apply to loan agreements for the purchase of cars and property that is or will be classified as housing (a residential house, apartment, future real estate, housing under construction, property rights to them).
Since the benefit is not automatically activated, you must notify the lender in writing of your service and provide supporting documents.
The exact list of documents should be checked with the lender, but the basic list is approximately as follows.
For military personnel:
– military ID card, in which service marks are made in the relevant sections;
– an extract from an order;
– a certificate of call-up for military service.
For reservists:
– an extract from the order;
– certificate of enrolment in the military unit.
For wives or husbands of military personnel:
– an extract from the registry office on the state registration of marriage (the extract must contain the full name of the wife and husband, the date of issue of the extract must be no more than 1 year before the date of submission to the bank);
– a package of documents confirming the right to receive favourable loan terms by a serviceman, depending on the category.
After that, you should apply to the bank:
To reconcile liabilities and obtain a certificate with the amount of the outstanding debt on the loan principal, as well as interest, fees, penalties, etc.
Exemption from payment of interest, commissions, penalties on the loan, as well as exemption from payment of insurance premiums, if any, provided for in the loan agreement.
What should you do if a bank or other financial institution does not satisfy your application or files a lawsuit against you?
Such actions are unlawful. You should file a written complaint with the management of the financial institution. Or directly to the National Bank of Ukraine. The NBU can inspect the financial institution and eliminate violations.
All military personnel can get help with writing complaints from the free legal aid system.
If you receive a claim from a financial institution, you can file a response to it, stating that you are a serviceman or woman and attaching documents confirming this.
War veterans are provided with assistance in going to court (e.g., drafting a response, representation in court) free of charge. Based on Article 14 of the Law of Ukraine “On Free Legal Aid”.
Servicemen and women without combatant status, as well as spouses of servicemen and women, may apply to the free legal aid system for consultations, explanations, assistance in drafting documents (complaints, applications, etc.), except for documents for applying to the court. However, if they also have the status of an internally displaced person (IDP) or another status provided for in Article 14 of the Law of Ukraine “On Free Legal Aid”, they can receive assistance with applying to the court on the basis of this status.
More detailed information on applying to the free legal aid system is available at the following link: https://legalaid.gov.ua/kliyentam/yak-otrymaty-bpd/ .