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Publication date: 13.10.2024
I am studying in the third year of the State University of Economics and Technology.I specialize in contractual, economic and corporate law, in particular, I provide consultations and write articles.
In accordance with paragraph 15 of Article 14 of the Law of Ukraine "On Social and Legal Protection of Servicemen and Their Family Members", benefits are established for servicemen who are called up for service during mobilization or participate in national security and defense measures. These benefits include the prohibition of charging fines, interest and interest for the use of credit, except in certain cases. Here are more details on the main aspects of this provision:
Question
Which servicemen are subject to this rule?
Answer
Conscripted for military service by mobilization during a special period (this is the period when mobilization or martial law is declared). Participants in measures to ensure national security and defense, repulse and deter aggression of the Russian Federation in Donetsk and Luhansk regions. Those who are directly in the districts and during the implementation of the specified measures.
Protection against fines and penalties:
- Military personnel subject to this article are exempt from: fines for non-fulfillment of financial obligations to legal entities or individuals, penalties for overdue obligations, interest for using credit, which are also not accrued.
- It is important that these benefits do not apply to loans that were taken out for the purchase of: residential property (residential building, apartment, real estate object, property rights to such objects), a car.
- Thus, in cases of credit obligations for the purchase of housing or a car, penalties, interest and interest may be charged in accordance with the terms of the contract.
Practical application:
A military serviceman can apply to a bank or other institution for benefits by submitting relevant documents confirming his status. If the creditor nevertheless charges fines or interest contrary to the law, the serviceman has the right to challenge it in court.
Exemption from paying interest for using a loan for military personnel
Exemption from paying interest for the use of credit for military personnel during the special period is an important benefit that is effective from the beginning of the special period (from 03/18/2014) and continues until its end. It concerns both military personnel and reservists and conscripts who were drafted during mobilization. Here are the key aspects of this benefit:
- Exemption from paying interest for using credit for servicemen, reservists and conscripts during the special period.
- Banks do not have the right to charge interest during the special period.
- If the interest was still accrued, the banks are obliged to write it off at the request of the serviceman.
- Period of benefit: For military personnel: from the beginning of the special period (March 18, 2014) until its end. For reservists and conscripts: from the moment of conscription during mobilization and until the end of the special period.
Question
How to use the benefit?
Answer
In order to exercise the right to the benefit and avoid accrual of interest, the serviceman must notify the bank of his status. This can be done by submitting the following documents: a copy of a military ticket with a corresponding mark on the completion of service, a copy of a certificate of conscription for military service (for reservists and conscripts), a copy of an extract from an order or a certificate of enrollment in the lists of a military unit. The military serviceman must send a written notification to the bank, attaching copies of the above documents. The bank is obliged to stop interest accrual from the moment of receipt of such an application. If the interest has already been accrued after the beginning of the special period, the bank must write it off.
If the bank ignores your request or continues to charge interest, the serviceman has the right to contact a lawyer to protect his rights. Submit a complaint to the court about a violation of the law by the bank. Banks cannot evade this legal requirement. In the event that interest is accrued during the special period, servicemen have the legal right to request their cancellation. This benefit is an important part of the social and legal protection of military personnel, reservists and conscripts, as it allows them to avoid financial burdens during the performance of military duties.
Exemption from fines and penalties:
- Repayment of the body of the loan: Although exemption from the payment of the body of the loan is not provided by law, a military serviceman can apply to the bank for debt restructuring.
- Restructuring of credit debt: A military serviceman can submit a written application to the bank for debt restructuring. This statement should indicate a request for a postponement or reduction of the monthly loan payments. Documents confirming military service or participation in hostilities, as well as documents confirming a difficult financial situation (certificate of income, salary, etc.) should be added to the application. The Ministry of Defense website has a sample bank application letter that you can use.
- Credit holidays: Military servicemen can agree with the bank on a credit holiday - a temporary postponement of the payment of the principal debt (the body of the loan) for an agreed period. After the end of this term, you need to resume payments on the body of the loan.
- Procedure: Prepare a written appeal to the bank with a request for credit restructuring or credit holidays. Add documents confirming participation in combat operations or service, as well as other proof of financial difficulty (income certificates, etc.). Wait for the bank's response, as the decision on debt restructuring is made by the bank on an individual basis.
Thus, military personnel are protected from fines and penalties for late payments, but the main debt (the body of the loan) remains to be paid.
Lawyer services in the application of benefits for loans for military personnel:
Lawyer advice when applying for military loan benefits can be extremely helpful, as it helps to make the right use of legal opportunities to protect financial rights. The main directions of the lawyer's services in this matter include:
Lawyer consultation and legal analysis of the situation: The lawyer will provide detailed advice on: the benefits provided by the legislation for military personnel in terms of loans, the rights to exemption from the calculation of fines, penalties and interest, the possibility of restructuring the loan and the agreement on loan holidays.
Legal services when applying to banks: Lawyers online will help you prepare a properly written written application to the bank regarding the provision of benefits, debt restructuring or credit holidays, prepare the necessary package of documents that must be submitted to the bank to confirm the status of a military serviceman and a difficult financial situation.
Lawyer services in case of violation of rights: In the event that the bank does not fulfill its obligations or refuses to provide benefits, the lawyer will help: file a complaint with the relevant authorities or go to court to protect your rights and prepare all the necessary documents for court proceedings and present your interests in court. If there is a need to challenge the bank's actions or defend your rights to benefits through court, a lawyer will help prepare a lawsuit, defend your interests in court, ensuring the correct application of the law on benefits of military personnel.
According to the current legislation of Ukraine, military personnel have certain benefits, but there is no exemption from the payment of the main loan debt (the body of the loan) or commissions. However, there are certain mechanisms that can help military personnel in difficult financial conditions. The cost of legal services depends on the complexity of the case and the amount of necessary actions. The lawyer help will allow you to avoid errors in the preparation of documents and make the most of legal opportunities to receive benefits.
