Deposit returns Kyiv

How to get a deposit back from a bank

Recent events in Ukraine have severely impacted the banking system. As of April 14, 2015, 48 banks are undergoing temporary administration or liquidation. Due to this tense situation, reclaiming a deposit from a bank has become a serious problem for Ukrainians. This page contains detailed consultations, step-by-step instructions on actions to recover deposits from banks in Ukraine, and necessary sample documents (applications, claims, complaints).

An updated list of problematic banks can be seen here
Our publication in Liga Zakon magazine with instructions and sample documents

Our lawyers advise you not to despair, to look for a way out of the situation, and assure you that it is possible to get a deposit back from a bank; you only need to:

• not waste time on long deliberations;
• communicate with the financial institution in competent legal language.

We will gladly advise you on how to recover your deposit independently, but if you are not confident in your abilities and knowledge on this matter, do not take risks — it is better to seek help from our professionals who will solve the problem without your participation. Missing what may seem like an insignificant detail could cost you the chance to recover your deposit from the bank, especially in cases such as early withdrawal of a deposit.

If you decide to contact the bank with a question about how to get your deposit back, do not be surprised if you end up without your money — the financial institution can be anything but an adviser to you and primarily defends its own interests. Whether you seek to recover a foreign currency deposit or a hryvnia deposit, act promptly and decisively. To achieve the desired result, develop a sound strategy largely determined by:

• the financial condition of your bank;
• the amount of the deposit and the currency in which it was made;
• your determination to obtain the return of the funds.

The higher your determination, the greater the chance of success. At present, the most reliable and fastest way to resolve such a problem as deposit recovery in Kyiv is to go to court. Only a court decision that has entered into force is subject to unconditional execution. Start by seeking professional assistance.

The competent lawyers of our company will advise you on all contentious issues that may arise in processes such as returning deposits in hryvnias and returning foreign currency deposits.

The attorneys of our legal association will help draft a competent application to the bank for the return of funds if the client wishes to resolve the matter amicably and avoid taking a case like returning a foreign currency deposit to the courts. Specialists of the company “Nakaz” will determine the realistic chances of successful completion of the process, the advisability of initiating it, develop a case strategy, and prepare a proper statement of claim for the return of the deposit.

Frequently asked questions

1) Early return of a bank deposit. There are two possible options here:

• Early termination of the deposit agreement with a bank that is not problematic. According to Part 2 of Article 1060 of the Civil Code of Ukraine, “under a bank deposit agreement, regardless of its type, the bank is obligated to return the deposit or part of it at the first request of the depositor, except for deposits made by legal entities under different return conditions established by the agreement. A contractual provision waiving the right to receive a deposit on first demand is null and void.” Accordingly, refusal to issue a deposit on the grounds that the term of the agreement has not expired is unlawful. However, it should be taken into account that even if the deposit agreement provides for early termination, it may also contain many adverse consequences that will lead to significant financial losses for the depositor. Therefore, lawsuits demanding early return of deposits in Ukraine are not uncommon. In this case, a qualified consultation requires reviewing the bank agreement. Often the situation arises where the depositor applies to the bank orally and is asked to wait, with the bank citing lack of cash in the teller. To avoid such situations, you should apply to the bank with a written application in TWO copies (one for the bank, one for placing a mark confirming receipt). Statistical observations indicate that most attempts by bank clients end successfully and they manage to exercise their right to early withdrawal of deposits. The main thing in this matter is to establish competent legal communication with the bank and obtain timely professional assistance in recovering the deposit.
• Early termination of the agreement with a bank where a temporary administration has been introduced. Paragraph 1 of Part 5 of Article 36 of the Law “On the System of Guaranteeing Deposits of Individuals” establishes that the disbursement of deposits whose terms have not expired from a bank with a temporary administration is temporarily prohibited. After the temporary administration ends, deposits are returned regardless of the expiration date of the deposit agreement.

2) Return of deposits in foreign currency.

The legislation regulating the return of foreign currency deposits in Ukraine is still far from perfect. According to Part 5 of Article 26 of the Law “On the System of Guaranteeing Deposits of Individuals“, foreign currency deposits are reimbursed in the national currency of Ukraine after converting the deposit amount at the official hryvnia exchange rate to foreign currencies established by the NBU on the day the temporary administration was introduced.

These resolutions established the following restrictions: a client could withdraw foreign currency from a deposit in an amount equivalent to 15,000 UAH per day (through the cash desk or ATM). In addition, banks were allowed to make early return of foreign currency deposits in hryvnias. Conversion took place at the currency purchase rate on the day of issuance.

However, it should be noted that there was quite ambiguous judicial practice on this issue and, given the constitutional right to own and dispose of one’s property, these restrictions could be challenged in court.

An example of two completely opposite decisions of the same court:

1. http://www.reyestr.court.gov.ua/Review/42183200
2. http://www.reyestr.court.gov.ua/Review/43037470

Possible sequence of events with a problematic bank:

1. The NBU makes a decision to declare the bank insolvent.
2. The Deposit Guarantee Fund (DGF) introduces a temporary administration for up to 3 months (for systemically important banks — up to six months). During the temporary administration, among other things, penalty sanctions for the bank’s failure to fulfill its obligations are not accrued. Also, during the temporary administration period, the bank returns deposits as far as possible within 200,000 UAH per depositor. Thus, at this stage you should apply to the bank with a statement about returning the deposit, not to the Deposit Guarantee Fund. Returns are made on agreements whose terms have already expired, as well as for current and card accounts.
3. At the DGF’s proposal, the NBU decides on the liquidation of the bank and the revocation of the banking license. As a general rule, liquidation is carried out within 1 year, but this period may be extended. Within 6 days from that moment, a list of depositors entitled to payments is formed, and from day 7 — the actual payment of the guaranteed amount begins (in this case, regardless of the expiration of the deposit agreement).

Within 30 days from the start of payments, the depositor must contact the paying agent bank with their passport and identification number. Information about your paying agent bank can be found on the Fund’s website. If you do not contact the paying agent within the specified period, you need to submit an application addressed to the authorized person of the Fund.

30 days before the end of the liquidation procedure, the Fund publishes a notice in official Ukrainian publications and on its online portal about the cessation of payments from the date of entry of liquidation information in the unified state register. But in practice, unfortunately, things are not always so simple.

All templates of documents on this page and the specialists’ consultations are up to date. On an individual basis, specialists of the legal association “Nakaz” provide the following services:

1. Drafting and filing all necessary procedural documents (claim, complaint, application), as well as monitoring the court process and providing all necessary consultations during the proceedings.
2. Attorney attendance at court hearings on the case.

Returning a deposit under a bank’s temporary administration

Problems with a bank’s temporary administration can arise after the NBU recognizes the institution as insolvent. As soon as a temporary administration appears in the bank, it immediately conducts a full audit of the bank’s assets. It is often the case that deposited funds are not returned to all depositors in such situations. Moreover, to recover an amount exceeding 200,000 UAH, you will have to go to court. Without qualified legal assistance, the timeframes of your case may be significantly prolonged and the chances of winning are negligible. Only an experienced lawyer can help you prepare all the necessary documents for filing a lawsuit and an attorney can protect your rights and interests during court proceedings. If you do not know whom to turn to for help in such a case, our company “Nakaz” will be your best solution. Prices for services are listed on our website.

Step-by-step instructions to recover money from a problematic bank

1. Preparation of a written application to the bank. Download a sample Application for deposit return here.

Print the form, fill in your details, find in your bank deposit agreement the clause that specifies the term for issuing the deposit and the procedure for requesting issuance of the deposit, and enter these details in the application. Then print the application for the return of funds in TWO copies, sign them, and date them.

2. Submitting the application to the bank.The completed application for the return of funds is submitted to the branch of the financial institution from which you want to withdraw the deposit. On the second copy, the bank employee must place a mark confirming receipt and return it to you. The mark looks as follows: the bank stamp, the date of receipt of the application, the inscription “Application received”: the position and full name of the employee who accepted the application, and their signature. Keep this stamped copy.

Difficulties obtaining a receipt mark for the application: the bank employee accepts the application but refuses to place the receipt mark. Your actions: remind the employee of clause 3.3 of the NBU Board Resolution ” On approval of the Regulation on the procedure for banks of Ukraine to carry out deposit operations with legal entities and individuals “, which states: “to accept a claim by stamping on it: the date of receipt, the signature of the authorized person, the bank stamp impression and to issue the individual a written notice of non-fulfillment (improper fulfillment) of this claim indicating the reason, the date of recording the claim, the date of issuing the notice, the surname, name and patronymic of the authorized persons and the bank stamp impression”.

If no arguments persuade the bank employees, the application must be sent by mail with acknowledgment of receipt and an inventory of enclosures. Later receive and keep the notice that the bank received the application. This is proof of your appeal to the bank. Attention! Send the application to the branch where you concluded the agreement, as well as to the head office.

3. Filing an application with the NBU

In all our instructions we strongly recommend using all possible pre-trial dispute resolution options. Therefore, in some cases when the issue can still be resolved at the pre-trial stage, we recommend that you inform the bank in writing about your appeal to the NBU, attaching a copy of the appeal. If there is no response from the bank or the response is unsatisfactory, proceed to the next stage.

You can download the NBU application here.

4. Filing a lawsuit in court

If there is no positive result after completing all the previous steps, you can try to contact the prosecutor’s office, file an application for deposit return at the bank’s head office if you previously dealt with a territorial branch. Theoretically these actions should somehow influence the situation, but in practice, apart from formal refusal letters designed to make the client give up, you are unlikely to receive anything substantial.

From this it follows that it is time to file a lawsuit. A properly drafted statement of claim for the return of a deposit largely determines the successful outcome of your case. Assistance from a specialist will be helpful. A person not familiar with legal nuances will have many questions even at the early stages of such a procedure as judicial recovery of deposits in national or foreign currency: where to file documents, how to correctly frame the claims, what documents to attach to the application?

Professional lawyers of the “Nakaz” association know the “shortest route to a bank’s heart” and are ready to show it to their clients. The cost of our specialists’ services is quite reasonable compared to the tasks they are ready to solve for you.

If you still want to try to resolve your problems on your own, do not spare the time and thoroughly study the recommendations given by the professional attorneys of our association on many problematic issues arising in the process of recovering funds. Here you can learn how to fill out and submit an application to the bank for deposit return, what regulatory restrictions exist on returning foreign currency deposits, and find answers to many other questions.

Download a sample statement of claim for the return of a deposit from a bank

A detailed step-by-step guide on how to file a claim in court yourself is available HERE.