The mechanism for the protection of consumer rights by a financial institution lies in the observance by the credit union, when carrying out activities for the provision of financial services, of the Law of Ukraine “On financial services and state regulation of financial services markets”, namely:

  • the principles of consumer protection defined by Art. 3-1 memory;
  • informing consumers in accordance with Art. 12 memory.
 1. FINANCIAL SERVICE PROVIDER
a)Name: Credit Union “ZARAZ”

Location: 03039, Kiev. st. Victor Zabila, building 5, office 122
Contact number: (0-800)755-427 (the call is free) (044)525-54-27; (050) 443-50-30; (067) 242-44-67; (063) 495-37-03
CU email address: cu_zaraz@ukr.net
Address where complaints from financial services consumers are received: 03039, Kiev, Viktor Zabily st., building 5, office 122

b) Intermediary service providers – none.
c)Information about the state registration of the CU:
Date of state registration in the Unified State Register: 25.05.2011
Date of recording: 25.05.2011
Record number: 10681020000027941
Code egrpou 37716197
d)Information on the inclusion of the CU in the state register of financial institutions:
Included in the GRFU on the basis of the decision of the Financial Services Commission 01.12.2011 №711
Registration number 14102665
Series and number of CU Certificate №943
Date of issue of the certificate 01.12.2011
e)Information on the availability in the CU, the right to provide the corresponding financial service:
PROVISION OF FUNDS IN A LOAN, INCLUDING IN NUMBER AND ON THE MINES OF A FINANCIAL CREDIT
By the order of the National Commission for State Regulation of Financial Services Markets dated 06.04.2017 No. 982, a perpetual license was issued to carry out economic activities to provide financial services (except for professional activities in the securities market), namely, the provision of funds in a loan, including including and on the terms of a financial loan.
License status: valid, unlimited.
ATTRACTING FINANCIAL ASSETS WITH AN OBLIGATION ON THE FOLLOWING RETURN
By the order of the National Commission for State Regulation of Financial Services Markets on April 13, 2017 No. 1090, a perpetual license was issued to carry out economic activities to provide financial services (except for professional activities in the securities market), namely, the provision of funds, including and on the terms of a financial loan.
License status: valid, unlimited.
f)Contact information of the body in charge of state regulation of the CC in the field of financial services:
National Bank of Ukraine (NBU) location: Ukraine, 01601, Kiev, INSTITUTSKAYA STREET, 9, Convenient online form on the NBU website; For electronic appeal: nbu@bank.gov.ua (fill in and send form and add supporting materials as needed. But attachment size is no more than 10 MB); For correspondence: st. Institutskaya, 9, Kiev, 01601; For the submission of written applications from citizens: st. Institutskaya, 11-b, Kiev, 01601; Phone: 0 800 505 240; Mon-Thu 9:00 – 18:00, Fri 9:00 – 16:45; Appointment: through online-form or by phone. 0 800 505 240; Public reception: st. Institutskaya, 12, room 24.

2. The list of services provided by a financial institution, the procedure and conditions for their provision. Cost, price / tariff, fee (interest) for financial services, depending on the type of financial service.

Credit Union ZARAZ provides financial services in accordance with: valid perpetual licenses; the procedure and conditions for their provision are specified in the regulations on financial services of the credit union “ZaRaZ”. http://zaraz.net.ua/2021/11/polozhennya-pro-finansovi-poslugi-nova-redakciya-vvedennya-v-diyu-10-11-2021r/  Namely:

– provision of funds in a loan, including on the terms of a financial loan.

As a result of obtaining a loan, taxes and fees are not paid at the expense of an individual.

When providing funds for a loan, including on the terms of a financial loan, the total amount of fees, payments and other expenses that the client must pay, including taxes, will consist of:

1) interest for using a loan accrued in the manner prescribed by the contract;

2) the amount of the provided loan specified in the agreement.

In case of violation of the terms of the agreement, the borrower, at the request of the credit saw, pays a penalty, inflation charges in accordance with Art. 625 GKU and interest in the manner prescribed by the contract.

Effective interest rates http://zaraz.net.ua/ukr/krediti/

– attraction of financial assets with an obligation for their subsequent return.

If an individual receives interest from the CU under an agreement on attracting a contribution (deposit) to a deposit account in a credit union:

1) such income is taxed at a rate of 18%, in accordance with clause 170.4 of article 170 of the Tax Code. The credit union, as a tax agent, within the timeframes determined by the Tax Code for a monthly tax period, pays to the budget the total amount of tax accrued at the rate specified in clause 167.1 of article 167 of the Tax Code, that is, 18% of the total amount of interest accrued for the tax month for the amount of the contribution of the members of the credit union;

2) from such income, a military fee of 1.5 percent is levied in accordance with subparagraph 1.2.p.16-1 of subsection 10 of section XX of the GCC. The accrual, maintenance and payment of the fee to the budget is carried out in accordance with the procedure established by Article 168 of the Labor Code.

In the event that a depositor transfers a contribution (deposit) to a deposit account to a bank account of a credit union, a commission may be paid to the bank for settlement and cash services of the bank in which the CU account is opened in accordance with the tariffs determined in the manner prescribed by law and the rules for the provision of services posted on the website jar.

Effective interest rates http://zaraz.net.ua/ukr/vigidni-vkladi/

3. Financial Services Agreement

CREDIT AGREEMENT ON THE PROVISION OF FUNDS IN A LOAN, INCLUDING AND ON THE TERMS OF A FINANCIAL LOAN.
 1.1.The client has the right to withdraw from the contract for the provision of financial services. The period during which the client can use the right to withdraw from the contract, as well as other conditions for the use of the right to withdraw from the contract:
1) The right to withdraw from the agreement on the provision of financial services – non-consumer loans are not provided for for this type of loan by law and by the agreement.
2) Concerning consumer loans
The borrower has the right, within 14 calendar days from the date of the conclusion of the Agreement, to withdraw from the consumer loan agreement without explaining the reasons, including if he receives funds.
The Borrower shall notify the Lender of the intention to withdraw from the Agreement in writing before the expiration of the period -14 calendar days from the date of conclusion of the Agreement.
If the Borrower does not present the notice in person, it must be notarized or submitted and signed by a representative in the presence of a power of attorney to perform such actions.
Within seven calendar days from the date of submission of a written notice of cancellation of the Agreement, the borrower is obliged to return the funds received under the Agreement to the Lender and pay interest for the period from the date of receipt of funds to the day of their return at the rate established by the Agreement.
Cancellation of the Agreement is the basis for the termination of agreements on additional or related services, which were determined as mandatory for obtaining a loan, concluded by the Borrower. The Lender (if he was paid payments under agreements on additional or related services) is obliged to return to the Borrower the funds paid by him for such additional or related services, no later than 14 calendar days from the date of submission of a written notice of cancellation of the Agreement, if such services were not actually provided until the day of refusal of the Borrower from the Agreement in the manner prescribed by law.
The right to withdraw from the Agreement does not apply to: consumer loan agreements, the fulfillment of obligations under which is secured by the conclusion of notarized agreements (legal provisions); consumer loans provided for the purchase of works (services), the performance of which occurred before the expiration of the term for cancellation of the Agreement – 14 calendar days from the date of conclusion of the Agreement.
 1.2.Minimum contract duration (if applicable):
The minimum contract period does not apply.
 1.3.The client has the right to terminate or terminate the contract, the right to early performance of the contract, as well as the consequences of such actions;
Consumer loan agreement
If the Borrower has exercised the right to repay the loan by increasing the amount of periodic payments, the Lender is obliged to make a corresponding adjustment of the borrower’s obligations towards their reduction and, at the request of the Borrower, provide him with a new payment schedule.
The Borrower, who intends to repay the loan debt ahead of schedule, is obliged to notify the Lender about this in writing no later than five working (banking) workers before the scheduled date of early repayment of the debt and contact the Lender’s officials for the final calculation of the full balance and the exact debt on the loan for the date of the planned payment. If the Borrower fails to comply with the terms of this clause of the Agreement, the Borrower bears the risk of incorrect calculation and payment of the loan debt.
The borrower has the right at any time to repay the loan in full or in part ahead of schedule, including by increasing the amount of periodic payments. If the Borrower has exercised the right to repay the consumer loan by increasing the amount of periodic payments, the Lender is obliged to make a corresponding adjustment of the Borrower’s obligations in the direction of their reduction and, at the request of the consumer, provide him with a new settlement schedule. The borrower, in the event of early repayment of the consumer loan, pays to the lender interest for the use of the loan for the period of actual use of the loan funds.
Loan agreement, which is not covered by the Law of Ukraine “On Consumer Lending”:
The Borrower has the right to early terminate this Agreement only on condition of early repayment of the loan and payment of interest for the actual period of use of the loan on the day of termination of the Agreement.
The borrower has the right to repay the loan early in installments, pay interest for the actual period of use of the loan, pay interest on the loan in advance payments (for subsequent payment periods) without restrictions, including in a lump sum advance payment of interest for the use of the loan for the entire planned term of the agreement or ahead of schedule repay the loan and pay interest for the actual period of use of the loan in a lump sum. Moreover, if such an early repayment of the loan took place before the expiration of three months of using the loan, the Borrower must pay the accrued interest for three full months of using the loan in the amount specified in Appendix No. 1 to the Agreement (calculation schedule) (lines 1, 2, 3).
 1.4.The procedure for amending the contract;
Amendments and additions to the agreement are made out by signing additional agreements in writing by the Parties, taking into account the following:
Any proposals for changing the essential terms of the contract must be made by sending a message in a way that allows you to establish the date of sending such a message.
Proposals to change the essential terms of the Agreement are provided in the following order and terms:
1) A proposal to change the essential terms of the contract (notification) is sent to the other party by letter in a way that allows you to set the date of departure or is handed over to the Borrower or a representative of the Union against a personal signature with a note on the date of departure and receipt.
2) The party to the contract is obliged to provide a written response within 10 days from the date of receipt of the letter or delivery of the offer against a personal signature.
3) If the party to the contract does not agree with the changes or does not give a response within the time period provided for in clause 2), the proposal is considered not accepted.
4) If the party to the agreement has agreed to the proposal, the additional agreement is concluded at the location of the union, in writing, within three working days from the date of the written response.
5) Changes to the agreement come into effect from the date of signing the additional agreement. All amendments, additions and annexes to the agreement signed by the parties are its integral and integral part.
 1.5.Impossibility of increasing the fixed interest rate under the contract without the written consent of the consumer of the financial service;
Interest rate type – fixed, cannot be increased without the written consent of the Borrower.
2. ATTRACTING FINANCIAL ASSETS WITH AN OBLIGATION ON THE FOLLOWING RETURN
 2.1.The client has the right to withdraw from the contract for the provision of financial services. The period during which the client can use the right to withdraw from the contract, as well as other conditions for the use of the right to withdraw from the contract:
The Depositor has the right to refuse to make the Contribution within fourteen calendar days from the date of signing this Agreement by providing the Union with the appropriate written notification.
 2.2.Minimum contract duration (if applicable):
The minimum contract period does not apply.
 2.3.The client has the right to terminate or terminate the contract, the right to early performance of the contract, as well as the consequences of such actions:
The agreement can be terminated on the initiative of the depositor in the following order.
The depositor at any time unilaterally has the right to demand termination of the agreement, having warned the Union about this in writing. In this case, the Union, upon first demand for contracts concluded on the basis of refund of funds on demand or within a period of not more than 30 calendar days from the date of receipt of the first written request of the depositor for early termination of the fixed-term contract and refund of the Contribution, shall return the Contribution to the Contributor and carry out all the necessary calculations for payment interest due to the Depositor in the manner determined by the Agreement. The accrual of interest on the Contribution starts from the next day after the Contributor makes the Contribution and ends on the day of final settlement in case of early termination of the Agreement. The date of termination of the Agreement is the day of the return of the Contribution.
For urgent contributions (deposits), in case of early termination of a fixed-term agreement, the interest rate is recalculated downward in the manner prescribed by the agreement. For contracts on attracting contributions (deposits) upon first request, there is no transfer of interest in case of early termination of the contract on the initiative of the depositor.
 2.4.The procedure for amending the contract;
Amendments to the Agreement are also made by the Parties concluding an additional agreement (s) in writing. A proposal to change the essential terms of the Agreement (notification) is sent to the other Party in a way that allows you to set the date of departure.
The terms of the Agreement may be changed or supplemented at the initiative of the Union in the event of a change in the market conditions for monetary resources, changes in the legislation governing the relations of the Parties, the adoption by the competent state bodies of acts or decisions that somehow affect the Union’s performance of the terms of the Agreement.
In this case, the Union shall send to the Depositor a written proposal indicating changes and / or additions to the Agreement by registered mail with acknowledgment of receipt. If the Investor agrees with the new terms of the Agreement, he is obliged to notify the Union about this and sign an additional agreement to the Agreement within one month from the date of receipt of the letter. These changes come into force upon signing by the Parties of the additional agreement. If the Investor has not signed an additional agreement within one month from the date of receipt of the letter, the offer shall be considered not accepted. In this case, starting from 32 days after the Depositor receives the above letter, the Agreement is terminated, the Deposit is returned to the Depositor and the interest due is paid based on the interest rate specified in the agreement for the actual period of using the Deposit.

4. Mechanism for consumer protection and pre-trial resolution of disputes on the provision of financial services.

4.1.1. Complaints of a consumer of financial services are considered by the credit union out of court, provided for by the Law of Ukraine “On Citizens’ Appeals” at the location of the credit union. In case of a consumer’s complaint with the credit union. The Union considers such a complaint and provides the consumer with a substantiated response to it within 30 calendar days from the date of its receipt in accordance with the legislation.

Also, a consumer of financial services can file a complaint for out-of-court proceedings in accordance with the law.:

1) National Bank of Ukraine, location: 01601, Kiev, st. Institutskaya, 9, phone: 0800 505 240, e-mail: nbu@bank.gov.ua, website https://bank.gov.ua/. According to the recommendations and in the manner determined by the NBU, the appeal is drawn up properly https://bank.gov.ua/ua/consumer-protection.

2) State Service of Ukraine for Food Safety and Consumer Protection (State Food Service) Location: 01001, Kiev, st. B. Grinchenko, 1, Reception (044) 279 12 70 24-hour Hotline (Call-center) (044) 364 77 80 Email info@dpss.gov.ua. – DEPARTMENT OF CONSUMER PROTECTION, tel.: 528-63-16; 528-92-42

3) Main Directorate of the State Food Service in Kiev, location: 04053, Kiev, st. Nekrasovskaya, 10/8; Tel.: (044) 486-54-86; Fax: (044) 486-40-27; e-mail: info@kiev.dpss.gov.ua

4) Kiev City State Administration, Kiev City Council, st. Khreshchatyk, 36, Kiev, 01044, Mon-Thu from 8:00 to 17:00, Fri from 8:00 to 15:45, Break from 12:00 to 12:45, from landline and mobile 1551

5) Goloseevskaya regional state administration in the city of Kiev, location: 03039, ave. Goloseevsky, 42, phone 044-281-66-62, email zg_golos@kmda.gov.ua;, website https://golos.kyivcity.gov.ua/

4.1.2. Disputes arising from the execution of this Agreement shall be settled through negotiations.

If the Parties cannot come to an agreement on controversial issues through negotiations, then such a dispute is resolved in court in accordance with the requirements of the current legislation of Ukraine or, in the case of securing the fulfillment of obligations under the Agreement with a mortgage, out of court in accordance with the agreement on satisfying the claims of the mortgagee or the corresponding clause in the mortgage agreement.

4.2. Availability of guarantee funds or compensation schemes applied in accordance with the law.

Ukrainian legislation does not provide for the availability of guarantee funds or compensation schemes for the credit union in the provision of financial services.