Bank liquidation does not release the borrower from repaying the loan — appellate court
The Cherkasy Appellate Court considered an appeal in a civil case concerning the recovery of debt under a consumer loan agreement, a decision on which was previously made by the Cherkasy District Court.
Case circumstances
The plaintiff in the case was a limited liability company that acquired the right to claim under the loan agreement after several assignments of the right to claim. The defendant appealed the decision of the court of first instance, which ordered him to pay over 117 thousand hryvnias of loan debt, as well as court costs. This was reported by the Cherkasy District Court of Cherkasy region.
As established by the court, in 2021 the defendant concluded an agreement with JSC "Megabank" for the use of a credit line within the todobank card product. The bank provided access to credit funds, which the borrower used through payments, transfers, and cash withdrawals. However, proper repayment of the loan and interest did not subsequently occur.
After JSC "Megabank" was declared insolvent, the right to claim under the loan agreement was sold through an electronic trading system and subsequently transferred to the LLC. The amount of debt as of September 2024 amounted to 117,828 hryvnias, of which over 42 thousand hryvnias was the principal debt, and over 75 thousand hryvnias were accrued interest.
Appellate court decision
In the appeal, the defendant stated that after the cessation of "Megabank" banking services, he was unable to properly fulfill his credit obligations. He also requested the cancellation of interest charges, reduction of legal assistance costs, and granting a two-year installment period for the execution of the decision.
However, the appellate court concluded that the arguments of the appeal did not refute the established circumstances of the case. The panel of judges took into account that the fact of concluding the loan agreement, receiving credit funds, and the existence of unpaid debt were confirmed by written evidence, including the application-agreement, account statements, debt calculation, and assignment agreements.
The court also noted that the mere fact of the bank's liquidation does not terminate the borrower's obligation to repay the loan and pay the interest stipulated by the agreement. Furthermore, the appellate court found no violations during the simplified proceedings, as the defendant had the opportunity to submit explanations and evidence.
Regarding the costs of professional legal assistance, the court agreed with the conclusions of the court of first instance about their proportionality to the complexity of the case and the scope of services provided by the lawyer. The court also found no grounds to grant an installment plan for the execution of the decision.
As a result of the appeal review, the decision of the Cherkasy District Court of Cherkasy Region was left unchanged.
The appellate court ruling has entered into legal force.
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