Parliament passes law on protection of financial services consumers’ rights

Source : 112 Ukraine

309 MPs supported the bill
14:16, 20 September 2019

Verkhovna Rada
Zoya Shu/

The Verkhovna Rada of Ukraine approved bill № 1085-1 on the protection of the financial services consumers’ rights. The bill was presented by the Deputy of the People's Servant fraction, Deputy Chairman of the Verkhovna Rada Committee on Finance, Tax and Customs Policy Oleksandr Dubinsky.

"We have obliged financial services companies to distinctly inform customers about the cost of these services and to provide information about the cost of third parties services they involve in order to process the financial service. These are insurance companies, notaries, these are all commission charges that are taken into account or not taken into account when the loan is being issued or when it is being repaid", - Dubinsky stated.

He noted that inclusion of the possibility of the financial service incomplete usage in the financial service agreement had been discussed.

Related: Ukrainian Parliament registers draft state budget for 2020

"After having consulted with the Main Scientific and Expert Department and having revised EU directives, we excluded this amendment and now it will not be possible to demand repayment from the financial services consumer of the costs of his unused services, if he wants to terminate his contract with a financial company and bank ahead of schedule", - the tax committee representative added.

Related: PM Honcharuk: Ukraine's government is planning to reduce taxes gradually

The bill provides a list of privileges for the protection of the National Bank of Ukraine, the National Securities and Stock Market Commission, and the National Financial Services Commission financial services consumers' rights.

Financial institutions responsibility for the violation of the financial services consumers’ rights is being established (during the discussion the significant difference between the biggest and the smallest penalty was criticized).

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