More banks sign deal with Banking Ombudsman
By Sara Israfilbayova
Five more financial institutions operating in Azerbaijan have signed agreement with the newly-established Institution of Banking Ombudsman.
Kapital Bank, AFB Bank, Pasha Bank, Atabank and Aqrarkredit non-bank credit organization signed agreement with the Institution of Banking Ombudsman, Executive Secretary of the Banking Ombudsman Elchin Hasanov told Trend.
The goal of the newly-established mechanism is to increase customer confidence in banks and settle disputes between parties without judicial intervention. Ikram Karimov was appointed the Banking Ombudsman.
Negotiations with banks on this issue have been ongoing for some time, and the lawyers of the financial structures have asked for time to get acquainted with the declaration, Hasanov said.
He added that the number of banks, working with the Banking Ombudsman, will increase in the future.
Some 31 banks, including two state banks, and 123 NBCOs are operating in Azerbaijan. So far, 23 banks and one NBCO have signed agreements with the Banking Ombudsman of Azerbaijan.
The ombudsman is expected to handle disputes with the amount of a claim up to $2,000.
Appeals will be accepted on the website www.bankombudsman.az, according to the Association of Banks of Azerbaijan (ABA).
Before sending an appeal to the Ombudsman, an individual must send his/ her claims to the bank in writing. In turn, the bank must provide the claimer with an answer within 30 days. An individual can apply to the Ombudsman within 60 days after receiving the answer or 30 days after the letter was sent to the bank.
In addition, the ombudsman activity will cover only those banks that signed the Declaration on the transfer of disputes involving individuals - clients of the financial institution to the Banking Ombudsman.
The Banking Ombudsman is not entitled to take decisions on making amendments and additions to mortgage loan agreements, including termination of (full or partial) obligations of the parties to the contract. The competence of the banking ombudsman includes holding meetings and providing banks with recommendations on the borrowers' appeals concerning changes in mortgage conditions.
The Ombudsman issues a conclusion about the possibility or impossibility of settling disputes. The Ombudsman is independent in activity, any interference in the activity when considering appeals is unacceptable.
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