Оn non-jurisdicial protection of borrowers’ rights in the field of consumer microcrediting

Abstract

The article examines non-jurisdictional forms of protection of borrowersʼ rights in the field of consumer microcredit. The following non-jurisdictional forms of protection are identified: mediation using the FinSkarga platform, appeal to the Office of Consumer Protection of Financial Services of the NBU, restructuring of obligations under the consumer loan agreement in accordance with Art. 17 of the Law of Ukraine «On Consumer Lending».
The analysis indicates the lack of effectiveness of non-jurisdictional forms of protection of the rights of consumers of microfinance services provided by law. Based on the analysis of judicial practice and the practice of resolving credit disputes with microfinance organizations, the pro-creditor position of courts in case of appeal of credit agreements by borrowers and imperfection of non-jurisdictional form of protection in general is indicated. It is noted that the microfinance organizations actually replaced the loan restructuring with the extension of the consumer microcredit agreement. The limited use of the FinSkarga platform is pointed out, as not all microfinance organizations are members. It is argued that the application of administrative and economic sanctions of the NBU does not lead to the restoration of violated consumer rights and operational impact on the microfinance organization.
Given the peculiarities of the national financial system, the status of microfinance institutions, the lack of operational influence on them by the NBU, the insufficient level of financial literacy of the population proposed an additional non-jurisdictional form of protection: the introduction of financial ombudsman. The expediency of amending the Law of Ukraine «On Consumer Lending» in terms of determining the administrative and economic fine for failure to comply with the requirements of Art. 11 of the Law of Ukraine «On Consumer Lending».