Thursday, July 17 2014 19:45
Union of Banks of Armenia: The number of bailiffs' e-notices for attachment of bank customers' accounts has recently risen from 300-400 to 10,000 daily
ArmInfo. The number of e-notices sent by the Judicial Acts Compulsory Enforcement Service to the Armenian banks to attach the current and deposit accounts of the customers has recently risen from 300-400 to 10,000 daily. The press service of the Union of Banks of Armenia (UBA) has told ArmInfo that the high growth rates of these notices create big problems for the citizens and the banks.
The UBA considers that this function has nothing to do with the main activities of the banks. Moreover, tangible human, software and financial resources are needed to perform that function. "The banks are the best partner of the Armenian Government in implementing programmes and performing socio-economic functions and have always supported implementation of socially oriented pogrammes. In this case, the banks are also ready to help the bailiffs take measures on compulsory enforcement of judicial acts, however, the relevant law should comprehensively be revised and the amendments proposed by the banks should be introduced in the law", says the UBA's statement.
On 10 July 2014, some parliamentarians came out with a legislative initiative to amend the Armenian Law "On Judicial Acts Compulsory Enforcement" and the bill was included in the agenda. "If a debtor has money on the current and deposit accounts, the bank that services these accounts shall attach the part of the funds specified in the compulsory enforcement resolution. If the bank, which services the debtor's accounts, makes a mistake when implementing the requirements, it shall compensate for the damage caused and the income lost", say the amendments.
In the meantime, there are several controversial items. The population of the country thinks that banks have nothing to do with the settlement of these problems and expresses its discontent with the banking system. In particular, several debtors were not informed of the administrative penalties imposed on their accounts, thereby being deprived of the opportunity to pay the administrative penalty in due time, i.e. before the attachment of their accounts. Furthermore, the customers are displeased with the tardity of the bailiffs, who delay the procedure of removing the attachment from the accounts.
To note, the customer base of the 21 commercial banks of Armenia (almost 500 branches) numbers over 2 million legal entities and individuals, who have almost 3.5 million accounts in the banks, with almost 2 million belonging to individuals and over 77 thousand to legal entities. The number of accounts in the banks is 3.3 million and 169 thousand, respectively.
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