Business

Court punishes bank for unlawful refusal to return deposit

In Khmelnytsky region, a bank depositor was unable to receive her savings in a timely manner and decided to defend her rights in court. The press service of the Khmelnytsky Court of Appeal reported on the progress of this case, "Komersant Ukrainian" reports.

As noted, in her lawsuit, the woman asked to oblige the bank to terminate the bank deposit agreement, as well as to recover moral and material damage from the bank and the state executive service department.

What was the initial course of the case?

In her lawsuit, the depositor stated that she had entered into a bank deposit agreement for a five-month period and, upon expiration of this period, she turned to the bank with a request to return the funds she needed for her medical treatment. However, the bank refused to return the deposit, explaining that the client’s account had been seized. At the same time, the bank did not specify by whom and when it was done.

The Vinkovets District Court of Khmelnytskyi Oblast dismissed the claim. The plaintiff did not agree with this decision and filed an appeal.

How the case was considered by the court of appeal

The Khmelnytsky Court of Appeal found that in February 2024, the chief state enforcement officer of the State Enforcement Service seized funds in the amount of UAH 3268 held in the plaintiff’s accounts. It was because of this decision that the bank refused to return her deposit.

According to the terms of the deposit agreement, if a deposit is seized, the client has no right to demand repayment of the deposit until it is withdrawn. However, in this case, as the court of appeal emphasized, the state enforcement officer did not seize the deposit, but only the plaintiff’s funds in the amount of UAH 3268 on her accounts.

According to the panel of judges of the Khmelnytsky Court of Appeal, the bank lawfully refused to return the deposit in the amount of UAH 3,268 due to the seizure order, but unreasonably failed to pay the rest of the deposit in excess of this amount.

“In addition, even if the bank believed that it could not return the deposit in connection with this arrest for technical reasons, as explained by the bank’s representative, after the arrest of the plaintiff’s funds was lifted on September 9, 2024, the bank (…) had to return the deposit in September 2024, and not in early February 2025, as it did,” the court of appeal noted.

What the court decided

Given that as a result of the bank’s actions, the plaintiff was unable to use her funds for vital needs, was under emotional stress and made significant efforts to restore her violated rights, the appellate court found her arguments for non-pecuniary damage to be justified.

However, the appellate court rejected the claims for termination of the agreement, as the depositor had timely declared her unwillingness to continue the deposit, which automatically terminated the agreement. The court also found no grounds for recovery of pecuniary damage.

Following the hearing, the court partially upheld the appeal: it overturned the decision of the district court and ordered the bank to recover UAH 3,000 in non-pecuniary damage in favor of the plaintiff.

The text of the decision in case No. 670/731/24 is available in the Unified State Register of Court Decisions.

What to do if a bank account is seized

Funds are seized in accordance with the Resolution of a public or private enforcement officer. The seizure is imposed on any type of account (card, deposit, current) in accordance with NBU Resolution No. 163 of 29.07.2022. According to its terms, if a bank client has seized accounts, all other accounts to be opened are subject to blocking and notification to the State Enforcement Service. This explanation is available on the Sense Bank website.

To find out the amount of the debt, the reasons for the seizure, and to obtain a copy of the seizure order, you should contact the bailiff.

You can find out the bailiff’s contacts and the number of the enforcement proceedings on the website of the Ministry of Justice by following the links:

– https://erb.minjust.gov.ua/#/search-debtors – to search, enter your RNOKPP or your first and last name;

– https://asvpweb.minjust.gov.ua/#/search-debtors – to search, enter the number of the enforcement proceedings;

Contact center number of the Ministry of Justice: 380 44 364 23 93.

You can also use the Diia app: to search, go to “Services” and click “Enforcement Proceedings”. Additionally, you can also find out the amount of the debt and pay it.

After the case is resolved with the bailiff, the bank will receive a Resolution on the lifting of the arrest. The bank then removes the seizure from the accounts specified in the Resolution.

Peculiarities of using the seized funds

During martial law, the bank is guided by the requirements of the Law of Ukraine “On Enforcement Proceedings”, which regulates the procedure for making expenditure transactions from accounts that have been seized.

If a certain amount is seized, it is allowed to spend funds within the available balance in excess of the seized amount.

For example, a seizure is imposed in the amount of UAH 1,000, and the bank’s client has UAH 3,000 on their salary card. The amount of UAH 1,000 will be blocked for use, but UAH 2,000 will remain fully available and can be used for their needs without restrictions.

If all the funds in the account(s) are seized, it is allowed to make monthly expenditure transactions in the amount of two minimum wages (i.e. UAH 16,000) from one account, as well as to pay taxes and fees. To do this, the bank must receive a resolution from the bailiff defining this account. It can be only one account in one bank.

In order to carry out expenditure transactions, you need to apply to the bailiff who imposed the seizure with an application for a bank account to carry out expenditure transactions. The application must be submitted in paper form (in person or by mail).

Within two business days from the date of receipt of the application, the bailiff shall issue a resolution on determining the account for expense transactions and send the relevant resolution to the bank no later than the next business day.

The bank starts to perform expense transactions on the designated seized account only after receiving the Resolution.