Can the military not pay on a loan: explanations from lawyers
Kyiv • UNN
Servicemen and their spouses are entitled to loan benefits. They are exempt from paying interest, fines and penalties, but not the principal amount of the debt. The benefits do not apply to mortgages and car loans.
There is a perception that servicemen and their spouses may not pay back the loan. However, this is not true. But there are indeed benefits for these categories of citizens. The Free Legal Aid network explained how to get these benefits, UNN writes.
Servicemen and their spouses have the right to not pay:
- interest on the loan;
- penalties for late payments;
- penalty for non-fulfillment of obligations for the period of validity of the special period.
The benefit is also available to spouses of military personnel.
Not only banks, but also credit unions, pawnshops, and other financial service providers should be able to provide benefits.
Exception: if it is a loan for a car, house or apartment, you will have to pay both interest on the loan and 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 building, apartment, future real estate, an object of unfinished housing construction, property rights to them).
The benefit is not automatically activated.
You must notify the lender in writing about 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:
- a military ID card, in which service marks are made in the relevant sections;
- extract from the order;
- certificate of conscription of a person liable for military service.
For reservists:
- excerpt from the order;
- a certificate of enrollment in a military unit.
For wives or husbands of military personnel:
- extract from 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 submission to the bank);
- a package of documents confirming the right of a serviceman to receive preferential loan terms depending on the category.
Next, you should contact the bank with applications:
1. on reconciliation of obligations and get a certificate with the amount of the remaining debt on the loan body, as well as interest, commissions, fines, etc.
2. On 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 to do if a bank or other financial institution does not satisfy your application or files a lawsuit against you
Such actions are illegal. You should file a written complaint with the management of the financial institution. Or immediately to the National Bank of Ukraine. The NBU can inspect the financial institution and eliminate the violations.
Recall
The Army+ app will have training courses and a loyalty program for the military. The mobile app will get new features, including a training module and a digital military ID card, and the Reserve+ app will have a recruitment service for viewing vacancies in military units.
