{"id":111628,"date":"2017-12-14T13:12:03","date_gmt":"2017-12-14T13:12:03","guid":{"rendered":"https:\/\/armbanks.am\/2017\/12\/14\/247000\/"},"modified":"2024-12-15T13:31:54","modified_gmt":"2024-12-15T13:31:54","slug":"armenian-law-provides-for-restrictions-on-fines-and-penalties","status":"publish","type":"post","link":"https:\/\/armbanks.am\/en\/2017\/12\/14\/111628\/","title":{"rendered":"Armenian law provides for restrictions on fines and penalties"},"content":{"rendered":"<p><strong>YEREVAN, December 14. \/ARKA\/.<\/strong> The Armenian parliament has passed today in the second and final reading a set of amendments to the Civil Code, which provides for restrictions on fines and penalties imposed by financial organizations.<\/p>\n<p>Deputy justice minister Artur Hovhannisyan explained that the total amount of the fine can not exceed the basic amount, regardless of the period that has elapsed since the accrual of the debt.<\/p>\n<p>According to him, the amendments stipulate that after the borrower&#8217;s collateral is sold, he\/she must be informed about it within a week and if this is not done, the financial institution will no longer have the right to charge additional fines if the value of the collateral is less than the debt.<\/p>\n<p>He noted that currently the statute of limitations for breach of obligations is three years, during which the lender (financial institution) can file a lawsuit to receive its funds. Fines will be charged for the entire period before sending the case to the court.<\/p>\n<p>Legislative changes stipulate also that lenders will be given a three-month period for filing a suit to court, after which they will not be able to charge fines and penalties.<\/p>\n<p>In addition, the financial ombudsman is entitled to reduce the amount of the fine, based on the social status of the borrower. -0-<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Armenian parliament has passed today in the second and final reading a set of amendments to the Civil Code, which provides for restrictions on fines and penalties imposed by financial organizations<\/p>\n","protected":false},"author":1,"featured_media":157087,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","tstyn_error":""},"categories":[9214,9216],"tags":[15837,14597,14598],"class_list":["post-111628","post","type-post","status-publish","format-standard","has-post-thumbnail","category-banks-en-en","category-news","tag-armenia-2","tag-civil-code","tag-restrictions"],"acf":[],"aioseo_notices":[],"aioseo_head":"\n\t\t<!-- All in One SEO 4.9.8 - 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