Azerbaijani banks accused of irregularities against borrowers and guarantors

Baku. 25 November. REPORT.AZ/ Commercial banks based in Azerbaijan sometimes take illegal steps against debtors and their guarantors. Report informs, Baku city, Nasimi district court’s judge Parviz Huseynov told in his speech on second day of the forum "Banking prospects in the post-oil period” held by Azerbaijan Banks Association (ABA).

According to him, sometimes banks demand guarantor to pay debt for died debtor; this is not reasonable: “Of course, died person cannot fulfil his obligations. But it doesn’t mean that guarantor must pay for him. Moreover, banks don’t agree with guarantor the extension of loan agreement; whereas his approval is also necessary”.

“Another example: borrower and guarantor receive their salaries from the same bank; but for some reason bank subtracts overdue payments from guarantors account. Sometimes banks subtract such big amounts from borrowers account, that they ask banks to sue, so that they pay legally determined percentage from their income”, the judge told.

P.Huseynov added that, when lending money for a long term, the banks didn’t properly assess creditors’ paying capacity: “Banks gave loans even to those people, who had debts to several banks; they litigate now. At the same time, banks didn’t pay attention to guarantee; as a result, to receive money back became a problem”.

“Sometimes citizens, who cannot pay for car loan, surrender the vehicle to the bank. In some cases, banks don’t register it properly and continue charging the debtor interests and fines”, he added.