NBU recommends banks to change their approach to collection activities during quarantine

The National Bank recommends banks to change their approach to collection activities during quarantine, Olga Lobaichuk, head of the NBU’s financial services consumer protection department, said in a comment to Radio Liberty. “The question of” collectors “or the return of problem debts arose somewhere in the third week of the introduction of the quarantine regime,” – explains the representative of the National Bank. Penalties and fines for late payments on loans to borrowers during the quarantine period are not charged, but no restrictions on collection activities were introduced.

Read more: Pay or endure: what to do for Ukrainians who are denied credit holidays by banks during quarantine? The National Bank held consultations with banks and issued recommendations: for those borrowers who were problematic even before quarantine, continue the plan with work on debt repayment. With regard to those debtors who began to go into delay just when the quarantine began and really have problems with income, there is a logic of work on the return of debts, Lobaichuk notes. “But nevertheless, there are cases, because the system is automated: a beacon pops up that the client is overdue and the department starts to deal with this very“ kolekshin ”and debt collection.

It is difficult for banks to reorganize so quickly and sometimes there are calls to people who, for objective reasons, cannot pay, ”she adds to RFE /RL. See also: How business will come out of quarantine: two “good news” and one “bad” Olga Lobaichuk advises in such cases to continue to write official applications to the bank with clear reasoning. The issue of collection activities does not yet fall under the regulatory function of the National Bank, but letters have been sent to banks with a recommendation to adjust their activities according to special conditions through quarantine: both contact centers, customer service departments, and collection activities, the NBU representative notes.

“We have separate requests for collection activities of banks. What I see: the number of such complaints has dropped by 63%. That is, banks are still restructuring and adjusting to new conditions, ”notes Olga Lobaichuk.

The NBU hopes for the adoption of the draft law, which passed the first reading, which will enable the National Bank to regulate collection activities, Olga Lobaichuk said.

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