The consumer is released of the liability for the delay in fulfilling obligations under the consumer loan agreement – forfeit (fine, penalty) and other payments, that are provided in the consumer loan agreement for late payment (non-performance, partial performance) by the consumer from March 1, 2020 to April 30, 2020 must not be paid.
The Law of Ukraine No. 533-IX “On Amending the Tax Code of Ukraine and other Laws of Ukraine to support taxpayers for the period of implementation of measures aimed at preventing the outbreak and spread of coronavirus disease (COVID-19)” dated on 17.03.2020, “Final and Transitional Provisions” of The Law of Ukraine “On Consumer Crediting” is added by paragraph 6.
However, one must understand that we are talking about liability for delay – Credit debts have to be repaid.
Articles 1046 and 1049 of the Civil Code of Ukraine are applied to loan agreements, that oblige to return the same amount of money that was taken (the so-called “loan body”).
Law No. 533-IX does not provide the suspension of intereston on a loan, it only allows to delay the payment of the “loan body” with interest without liability for such delay. Interest continues to be accrued, and the National Bank of Ukraine has already issued relevant clarifications.
So, for the delay in payment of the “loan body” and interest for two months (March-April 2020), liability does not arise, but the funds still need to be returned.
The release of liability for late performance (non-performance, partial performance) by the consumer of contractual obligations in accordance with the provisions of abovementioned Law is unconditional.
It means, the law alone is sufficient to prevent the Bank from charging a penalty (fine, penalty) and other payments, the payment of which is provided for by the consumer loan agreement for late payments for the period March-April 2020.
The consumer-borrower does not have additional necessity contact the Bank on this case, to submit applications, documents on the deterioration of material conditions, etc. However, we recommend to check the statement of the credit account for the absence of such charges after the end of the period of release of liability (in late April 2020 – early May 2020)
Additionally, on March 17, 2020, the Law of Ukraine No. 530-IX of the Government instructed to ensure within two days from the date of entry into force of this Law the adoption of normative legal acts and submit for consideration by the Verkhovna Rada of Ukraine draft laws, that are necessary for the settlement of social communication related to the establishment of quarantine, including the suspension of the obligation to fulfill the main obligation, the fulfillment of which is provided by a mortgage, and the prevention of enforced seizure of mortgages on the period of quarantine or restrictive measures related to the spread of coronavirus disease (COVID-19).
Now this a bill is not listed in the database registered on the website of the Verkhovna Rada.