RESOLUTION OF BOARD OF THE NATIONAL BANK OF UKRAINE

of July 5, 2021 No. 70

About approval of Changes in Regulations on application of corrective actions by the National Bank of Ukraine

According to Articles 7, of 15, of 55, 56 Laws of Ukraine "About the National Bank of Ukraine", to Articles 66, of 67, of 73, 74 Laws of Ukraine "About banks and banking activity", article 41-1 of the Law of Ukraine "About financial services and state regulation of the markets of financial services", article 28 of the Law of Ukraine "About consumer crediting", for the purpose of ensuring accomplishment of the Law of Ukraine of March 19, 2021 "About introduction of amendments to some laws of Ukraine concerning consumer protection in case of settlement of overdue debt" the Board of the National Bank of Ukraine DECIDES: No. 1349-IX

1. Approve Changes in the Regulations on application of corrective actions by the National Bank of Ukraine approved by the resolution of Board of the National Bank of Ukraine of August 17, 2012 No. 346, registered in the Ministry of Justice of Ukraine on September 17, 2012 for No. 1590/21902 (with changes) which are applied.

2. To department of methodology of regulation of activities of banks (Natalya Ivanenko) after official publication to inform banks of Ukraine information on adoption of this resolution.

3. The resolution becomes effective since July 14, 2021.

Approved by the Resolution of Board of the National Bank of Ukraine of July 5, 2021 No. 70

Changes in Regulations on application of corrective actions by the National Bank of Ukraine

1. In the Section I:

1) in Chapter 1:

state Item 1.1 in the following edition:

"1.1. This Provision is developed according to the Laws of Ukraine "About the National Bank of Ukraine", "About banks and banking activity" (further - the Law on banks), "About prevention and counteraction of legalization (washing) of income gained in the criminal way, to financing of terrorism and financing of distribution of weapons of mass destruction" (further - the Law on prevention of legalization), "About currency and currency transactions" (further - the Law on currency), "About financial services and state regulation of the markets of financial services" (further - the Financial services act), the legislation of Ukraine on economic societies, on consumer protection of financial services, other legal acts of Ukraine and regulatory legal acts of the National Bank of Ukraine (further - National Bank).";

in Item 1.2:

shall be replaced with words words of "financial sanctions" "financial / penalties (further - corrective actions)";

Item after words" (further - the legislation concerning financial monitoring)," to add with words "consumer protection laws of financial services, including requirements for interaction with consumers in case of settlement of overdue debt (requirements of rather ethical behavior),";

2) in Item 3.1 of Chapter 3:

the paragraph one after words "legislations concerning financial monitoring," to add with words "consumer protection laws of financial services, including requirements for interaction with consumers in case of settlement of overdue debt (requirements of rather ethical behavior),";

add Item with the new paragraph of the following content:

"supervision of observance of the consumer protection law of financial services by banks, including requirements for interaction with consumers in case of settlement of overdue debt (requirements of rather ethical behavior).".

2. In the Section II:

1) in Chapter 1:

Item 1.1 after words "legislations concerning financial monitoring," to add with words "consumer protection laws of financial services, including requirements for interaction with consumers in case of settlement of overdue debt (requirements of rather ethical behavior),";

in Item 1.3:

the paragraph one after words "legislations concerning financial monitoring," to add with words "consumer protection laws of financial services,";

add Item with the new subitem of the following content:

"й) elimination of violation of the law about consumer protection of financial services, including requirements for interaction with consumers in case of settlement of overdue debt (requirements of rather ethical behavior).";

2) in Chapter 9:

add Item 9.1 with the new paragraph of the following content:

"violations of the law about consumer protection of financial services, including requirements for interaction with consumers in case of settlement of overdue debt (requirements of rather ethical behavior).";

to add Chapter after Item 9.32 with new Item 9.33 of the following content:

"9.33. The National Bank imposes on bank penalty for violation of the law about consumer protection of financial services, including requirements for interaction with consumers in case of settlement of overdue debt (requirements of rather ethical behavior), namely:

1) failure to provide or provision not in full to the consumer of financial services before the conclusion of the agreement on provision of financial services of information on conditions of provision of financial services determined by the law in amount, stipulated by the legislation, or provision of unreliable information about such service - in the amount of 300 to 600 free minima of the income of citizens for each case of such failure to provide, provision not in full or provisions of unreliable information;

2) failure to provide at the request of the consumer of financial services of the draft agreement about financial services if such obligation is provided by the law, - in the amount of 300 to 600 free minima of the income of citizens for each case of such failure to provide;

3) failure to provide to the consumer of financial services according to the procedure, the provided part two of Article 6 of the Financial services act, copy of the agreement on provision of financial services and appendices to it (in the presence) - in the amount of 300 to 600 free minima of the income of citizens for each such case;

4) not evaluating creditworthness of the consumer before the conclusion of the agreement on financial service if its obligatory carrying out is provided by the law, - in the amount of 300 to 600 free minima of the income of citizens for each case of not conducting check;

5) the conclusion of the agreement on provision of financial services not in writing (if the conclusion of the agreement is in writing provided by the law) - in the amount of 300 to 600 free minima of the income of citizens for each such case;

6) increase unilaterally fixed interest rate or the non-notification of the consumer in time and procedure which are established by the law, about change of changeable interest rate - in the amount of 500 to 800 free minima of the income of citizens for each such case;

7) the non-notification the supplier of financial service of the consumer about right to claim concession under the agreement on rendering financial service if obligation of such notification is established by the law, - in the amount of 300 to 600 free minima of the income of citizens for each case of such non-notification;

8) non-compliance with the requirements for interaction established by the legislation with consumers in case of settlement of overdue debt (requirements of rather ethical behavior) - in the amount of 3 000 to 6 000 free minima of the income of citizens;

9) attraction to settlement of overdue debt of the legal entity who is not included in the register of the collection companies - in the amount of 5 000 to 8 000 free minima of the income of citizens;

10) non-compliance with the requirements to the agreement on consumer loan established by the law - in the amount of 5 000 to 7 000 free minima of the income of citizens.".

With respect thereto Items 9.33 - 9.37 to consider respectively Items 9.34 - 9.38;

the paragraph one of Item 9.36 to state in the following edition:

"9.36. The decision of National Bank on application to bank, branch of foreign bank of corrective action in the form of imposing of penalty is the executive document and takes legal effect from the date of its acceptance, except the decision of National Bank on application of corrective action in the form of imposing of penalty for violation of the law about consumer protection of financial services, including requirements for interaction with consumers in case of settlement of overdue debt (requirements of rather ethical behavior) which acquires the status of the executive document according to the procedure, established by part three of article 28 of the Law of Ukraine "About consumer crediting".".

3. In the text of the Provision to replace the word "project" in all cases with the word "project" in the corresponding cases.

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