BANKING SPIDER’S WEB

During the last period, we receive numerous phone calls, particularly form Yerevan, Hrazdan, Vanadzor, citizens and legal entities who complain of rough policy exercised by banks, whereas a citizen from Hrazdan complains that he is willing to redeem his credit liabilities on premature basis but the bank does not give its consent.

We all still remember that after the collapse of USSR, all the savings of people which were kept with banks, went down the drain, and people started to call themselves “deceived depositors”. In 90s numerous compatriots of our country who had bank accounts in non-governmental banks joined the group of the so-called “deceived depositors” who during one night lost their deposits since either the banks went bankrupt or the banks disappeared with the investments of their deposits.

Years ago the international crisis commenced from the banks. It is hard to say what is the cause of submitting the main plan to the bank as a result of the accounts of economists, but on legal grounds the legal norm related to banks and bank operations seems to work only for banks. In this sphere a citizen or a legal entity appear in a kind of unequal plane. And the impression is that it is the parties that make a transaction, but also a citizen or legal entity are compelled to sign the contract suggested by the bank based on all further legal consequences which is complimented by legal norm acting in favour of the bank and as a result a citizen or a legal entity very often become bankrupt and insolvent and lose their pledged property and become homeless.

If we admit that the law is a science of kindness and just, and the heaven laws are written by us, ordinary people, and if the written law is not coordinated with the law, then the law can turn into a destructive power which we witnessed ourselves (the typical example of the international crisis).

Section of Clause 2 of Article 880 of RA stipulates that the loan amount granted on interest basis can prematurely be returned only by the consent of the lender if nothing otherwise is envisaged by Law or Loan Contract. As a matter of fact, the legislation entitles banks to use economic ups and downs, enter into credit contracts at high interest rates, include this provision in the contract and not to allow the borrower to perform his obligations prematurely.

It is necessary to know:

1. in signing any transaction, it is necessary:

a) to read the contract, if possible, for several times and consult an expert-lawyer of the given area and in case of important transactions, please consult an expert-representative.

b) to be aware of the laws, legal acts which may relate to the transactions to be signed.

c) if a lender fails to return the loan amount within the stipulated time, then the interests envisaged by the loan contract, and the given amount shall entail bank interests as envisaged by law, but from the day when the amount ought to have been returned prior to the return of the amount to the lender.

d) the borrower has the right to partially or fully refuse from getting the loan by notifying the Lender thereof prior to the granting of the period for the loan as envisaged by the contract, if nothing otherwise is envisaged by law or the credit contract.

e) a citizen or a legal entity is entitled to submit an application for reaccrediting to both the given bank from which he received the previous loan and from other banks.

f) the borrower ought to perform his liabilities to pay the loan amount and interests in due time as envisaged by the contract, otherwise the pledged property shall be alienated under the law.

g) banks ought to be aware that as a result of non-performance or credit liabilities of each customer and the alienation of the property, the latters will not only lose their potential customers, but also the country will lose its potential solvent citizens or tax payers.