Bad Debts
Instruction
With effect from 1 October 2021, a single procedure for settlement of overdue loan debts of citizens, which is mandatory for banks, has been introduced. This procedure requires creditors to consider the borrower's application for loan restructuring based on the borrower's current solvency. Article 36 of the Banking Law outlines the following debt settlement procedure:
1. According to this procedure, within thirty calendar days from the date of occurrence of a delay in performance of obligations under a Bank Loan Contract, an individual borrower may visit the Bank and submit an application in writing or in the manner provided for by the Contract, outlining the reasons that cause the delay in fulfilling obligations, income and other confirmed circumstances (facts) that justify the debtor's application for modifications to the terms of the Bank Loan Contract.
2. Within fifteen calendar days following receipt of the individual borrower's application, the Bank shall review the proposed modifications to the terms of the Bank Loan Contract and notify in writing or by any means specified in the Contract of:
1) its consent with the proposed modifications to the terms of the Contract;
2) its proposals to modify the terms and conditions of the Contract;
3) refusal to modify the terms and conditions of the Contract with a reasoned justification for such refusal.
For any issues related to late monthly payments, you can get consultation by calling the following hotline numbers:
+7 (727)2 44 22 54, 8 (800) 080 00 88, 505.
