Ukrainians often learn about real interest rates only after signing the contract. It turns out that in addition to the “loan” and interest have to fees, fines and services which neither the is nor the branch of the financial institution it was not, stated in the explanatory note to law No. 2455. The authors found out that sometimes the real interest rate on the loan up to 135% per annum, while the national average ranges from 22 to 38%.
Jun 20 the law is in effect – the credit market will work by new rules. Banks will not be able in the advertisement to specify the interest rate without additional fees, payments and penalties. “In the calculation of the effective rate will include all loan interest and payments for other services of the lender associated with the loan. This requirement would apply only if promotional materials contain any data (numbers) on consumer expenditure”, – the document says.
“In the calculation of the effective rate will include all loan interest and payments for other services of the lender associated with the loan. This requirement would apply only if promotional materials contain any data (numbers) on consumer expenditure”, – the document says.
Also, the legislator obliges the Bank or other financial institution to assess the creditworthiness of the borrower. To do this, the Ukrainians will have to submit the relevant documents such as proof of income. Quickly to obtain loans only with a passport will become more difficult.
Another important change – changing the order of repayment of the loan. Previously, the debtors primarily to repay penalties and interest, resulting in a “loan” is not actually changed. After the law came into force in the first place will be repaid the amount of overdue debt, and then “loan” and only after that – penalties. Parliamentarians believe that this will allow the debtors to get rid of the “infinite counter”.
