Azernews.Az

By Aynur Karimova

Financial disputes inevitably arise between different financial institutions and ordinary citizens. In such cases, citizens often do not know where to seek help. The financial ombudsman service is of significant importance in this regard.

Samir Aliyev, an expert at the "Support for Economic Initiatives" public union, claims that Azerbaijani is yet to establish a financial ombudsman service and such an institute is desperately needed.

"This institute operates in many countries, but Azerbaijan does not have it yet. Unfortunately, citizens facing particular problems with banks often do not know where to turn," he told local media.

Today, the number of debtors on loans exceeds two million in Azerbaijan. When citizens receive consumer loans and cannot afford to pay them for various reasons, they face problems with the banks. If the citizen does not pay the loan, the bank has the right to file a charge and to put his/her property up for sale.

"The volume of problematic loans continues to increase. If the credit investments in the country increase by about 15-16 percent per year, the volume of problematic loans increases by 25-30 percent," he added.

Today, the rights of bank clients in Azerbaijan are protected by a law titled "On the protection of consumer rights." The establishment of a financial ombudsman service will become a significant step towards the protection of the rights of bank clients.

Recently, the Head of Azerbaijan’s Commercial Banks Association, Zakir Nuriyev, announced that the Azerbaijani government would establish an institute of the financial ombudsman -- a pre-trial format for dispute resolution between the bank and its client before applying to a court.

"It is very convenient, because trials last for a long time and is expensive, while an appeal to the financial ombudsman is free. It is a bridge between the client and the bank. I should say that the banks themselves are interested in the establishment of such an institution, as the banks do not need trials, because it takes their time and requires money, etc.," Aliyev said.

Currently, financial ombudsman services operate in 100 countries. The scope of supervision is not just limited to financial and economic issues, but also includes basic human rights protections and various social problems.

Despite the fact that the ombudsman will not be in charge of punishment, fines, or enforcing appropriate compensation, the financial ombudsman will focus on specific issues and become a bridge between the bank and its client.

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Aynur Karimova is AzerNews’ staff journalist, follow her on Twitter: @Aynur_Karimova

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