RESOLUTION OF BOARD OF THE NATIONAL BANK OF UKRAINE

of July 9, 2021 No. 78

About approval of the Regulations on application of corrective actions by the National Bank of Ukraine for violations of the consumer protection law of financial services by the collection companies

According to Articles 7, of 15, 56 Laws of Ukraine "About the National Bank of Ukraine", article 41-1 of the Law of Ukraine "About financial services and state regulation of the markets of financial services", to Articles 5, of 26, 28 Laws of Ukraine "About consumer crediting", to the Law of Ukraine of March 19, 2021 No. 1349-IX "About introduction of amendments to some laws of Ukraine concerning consumer protection in case of settlement of overdue debt", for the purpose of settlement of procedure for application of corrective actions for violations of the consumer protection law of financial services by the collection companies regarding the requirements for interaction established by the legislation with consumers in case of settlement of overdue debt (the requirement of rather ethical behavior) the Board of the National Bank of Ukraine DECIDES:

1. Approve Regulations on application of corrective actions by the National Bank of Ukraine for violations of the consumer protection law of financial services by the collection companies which is attached.

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

Approved by the Resolution of Board of the National Bank of Ukraine of July 9, 2021 No. 78

Regulations on application of corrective actions by the National Bank of Ukraine for violations of the consumer protection law of financial services by the collection companies

I. General provisions

1. This Provision is developed according to the Laws of Ukraine "About the National Bank of Ukraine", "About financial services and state regulation of the markets of financial services" (further - the Financial services act), "About consumer crediting" (further - the Law on consumer crediting), other legal acts of Ukraine.

2. This Provision determines procedure for application by the National Bank of Ukraine (further - National Bank) corrective actions for violations by the collection companies which are not financial institutions (further - the collection company), of the requirements established by the legislation of Ukraine concerning interaction with consumers in case of settlement of overdue debt (requirements of rather ethical behavior) (further - the legislation by settlement of overdue debt).

3. The terms used in this Provision are used in such values:

1) the document in which violations are fixed, - the document constituted by results of implementation in the procedure for supervision of observance by the collection company of the requirements for interaction established by the legislation established by National Bank with consumers in case of settlement of overdue debt (requirements of rather ethical behavior);

2) the actions plan for violation elimination - the document which is constituted by the collection company and contains terms of accomplishment and the list of measures which such company for elimination of violations and/or taking measures for non-admission of such violations of the law about consumer protection in further activities shall accept;

3) systematic violation of the law of Ukraine - making of two or more violations of the same regulation of the consumer protection law by the collection company (further - similar violation) within year after application to such collection company of corrective action for similar violation;

4) the continuing violation - violation in case of which the collection company after making of violation does not stop to perform it;

5) authorized officer of National Bank - The chairman of National Bank, vice-chairmen of National Bank, the head of the structural unit of National Bank to which functions supervision of compliance with law of Ukraine about consumer protection of financial services belongs and about advertizing in the sphere of financial services (further - structural division on consumer protection), the head of the structural unit of National Bank to which functions registration of the collection companies belongs (further - structural division on registration), the deputy manager of structural division on consumer protection, the deputy manager of structural division on registration, the chief of the department as a part of structural division on the registration or faces fulfilling them duties.

The term "consumer" is used in value of the Law on consumer crediting. Other terms used in this Provision are used in the values determined in the Laws of Ukraine "About the National Bank of Ukraine", the Financial services act, the Law on consumer crediting.

II. The corrective actions applied by National Bank

4. The National Bank during decision making about application of corrective actions in case of violation of the law about consumer protection within the powers has the right to apply to the collection company of corrective action, provided in Items 1 - 4 parts one of article 28 of the Law on consumer crediting.

5. The National Bank for violations in activities of separate division of the collection company applies corrective actions to the legal entity - the collection company according to the procedure, provided by this Provision.

III. Bases and procedure for application of corrective actions

6. The National Bank applies corrective actions for violation of the legislation by the collection company on settlement of overdue debt, including the requirements of the regulatory legal acts of National Bank accepted according to the Law on consumer crediting on settlement of overdue debt, based on results of supervision of observance by the collection company established by the legislation of requirements for interaction with consumers in case of settlement of overdue debt (requirements of rather ethical behavior).

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