The Ukrainian banks will not be able to encroach on the residential properties of Ukrainians due to defaulted credit penalties and fines. After the person repays the amount of the mortgage loan – the principal of the loan and the accrued interests, - the bank does not have the right to hold a pledge of the residential properties and, moreover, seize it for the payment of a penalty. The Supreme Court expressed the respective position, trying the case №6-2560цс16 – the dispute of a physical person with Oshchadbank, according to materials of Finance.ua.

“The state bank decided to find fault with the non-fulfilment of some requirements of the agreement: non-prolongation of insurance, non-notification of the bank about the change of account details, the non-admission of bank employees to the pledged property. Based on it, the bank charged the fines, amounting UAH 20 ths. With reference to the presence of this arrears, the bank denied to uncharge the property. However SCU ordered that the Oshchadbank’s requirement was illegal and that the property should be released from pledge. Because the individual discharged all main liabilities to the lender – repaid the loan principal and interests. The fine is not the main requirement of holding a pledge of the property. In addition, the mortgage does not secure the specified fines”, Senior Partner of Kravets and Partners Law Firm Rostislav Kravets explained.

The lawyers are confident that the decision in favor of the borrower totally complies with the current legislation. That is why the lower courts should come to the same conclusions in the same disputes.