A Kyiv resident demands Oschadbank to return deposit interest totaling $85,479. What was the court's decision?
A woman deposited 1 million dollars into Oschadbank. Following a temporary freeze on the deposit funds of JSC "Oschadbank", the bank unilaterally changed the interest rate on the deposit agreement. She is requesting the financial institution to resume interest accrual for the period from November 14, 2019, to July 30, 2021, totaling 85,479 dollars. This information is stated in the decision of the Pechersk District Court of Kyiv, published on January 22, 2025.
On April 22, 2019, the woman entered into a comprehensive banking service agreement with JSC "State Oschadbank of Ukraine" for individuals and opened a current account using an electronic payment medium (bank card). On August 1, 2019, by filling out a deposit opening application through the Oschad 24/7 system and signing an electronic contract with a one-time identifier (password) sent to her phone number, a deposit account was opened under the following conditions:
- deposit type "My Premium Deposit";
- contract amount 1,000,001 dollars;
- interest rate 5%;
- Duration: 12 months;
- closing date July 31, 2020.
On November 14, 2019, the National Anti-Corruption Bureau of Ukraine issued a ruling to freeze funds, including those in the deposit account. On November 18, 2019, the High Anti-Corruption Court issued a ruling in case No. 760/7590/19 to freeze funds, including those in the deposit account. On August 1, 2020, the deposit agreement was extended to August 1, 2021. According to the ruling of the High Anti-Corruption Court dated July 29, 2021, in case No. 991/5046/21, the freeze on the funds in the deposit account was lifted. On July 30, 2021, the funds deposited in the account were returned to her.
On October 12, 2021, at the woman’s request, JSC "Oschadbank" provided a certificate stating that interest accrual on the account was automatically suspended from the day the freeze was imposed, and a zero interest rate was set according to the contract terms. She believes that the actions of JSC "Oschadbank" regarding the refusal to accrue interest on her deposit agreement from November 14, 2019, to July 30, 2021, totaling 85,479 dollars, contradict Article 18 of the Law of Ukraine "On Consumer Rights Protection", as the terms of clause 2.10 of the deposit agreement concerning the cessation of interest accrual from the day the bank receives documents about the freeze are unfair. In particular, these conditions are unjust because, contrary to the principle of good faith, they result in a significant imbalance of contractual rights and obligations to the detriment of the consumer. This imbalance consists of the fact that, having the right and opportunity to use the client's (consumer's) funds, the bank (service provider) is not obliged to accrue interest for such use. Additionally, the actions of JSC "Oschadbank" contradict the provisions of clause 2.8 of the deposit agreement, as the imposition of a freeze on the funds in the deposit account does not serve as a basis for changing the interest rate on the deposit.
Thus, considering that the funds were placed by the woman in the deposit account and were kept there the entire time, JSC "Oschadbank" had the actual ability to use them throughout the duration of such funds. Therefore, the provision of clause 2.10 of the deposit agreement does not meet the requirements of fairness and contradicts the provisions of the Instructions on calculations, which provides grounds for declaring this condition of the contract invalid concerning the cessation of interest accrual on the deposit from the day the bank receives documents about the freeze, as it violates the principle of good faith, leads to a significant imbalance of contractual rights and obligations of the parties, and harms the consumer.
"According to the terms of the deposit agreement concluded between the parties on August 1, 2019, the depositor deposited, and the bank accepted into the deposit account under the terms of this agreement the amount of 1,000,001 dollars at an interest rate of 5% per annum for a term of 12 months, with the return date of the deposit being July 31, 2020. The parties agreed that in the event of a freeze on the deposit (or part of it), the bank would cease to accrue interest on the account from the day the documents about the freeze were received at the bank. The ruling of the National Anti-Corruption Bureau of Ukraine on the freeze of funds dated November 14, 2019, No. 01-092/39630, and the determination of the High Anti-Corruption Court dated November 16, 2019, in case No. 760/7590/19 are mandatory for execution and are executed immediately. Therefore, by ceasing to accrue interest on the account from the day the documents about the freeze were received (November 14, 2019) until the moment of receiving the documents about the lifting of the freeze (August 2, 2021), JSC "Oschadbank" acted in accordance with the requirements of the deposit agreement and the norms of the legislation in force at the time of the disputed legal relationship," the bank stated.
What did the court decide?
The court denied the woman's claim. From the moment the freeze was imposed on the depositor's funds at JSC "Oschadbank", the attracted funds could not be used by the bank and accounted for as a term deposit; instead, they could have been seized at any moment based on a payment requirement for forced withdrawal of funds.
"Ukrainian legislation restricts the use of frozen funds, and the bank, based on clause 2.10 of the deposit agreement, rightfully ceased to accrue interest on the deposit during the period of the fund freeze from November 14, 2019, to July 30, 2021. Therefore, the claim demanding that JSC "Oschadbank" accrue and pay interest on the deposit agreement, according to the interest rate of 5%, for the period specified by the plaintiff, is unfounded and not subject to satisfaction. The court, evaluating the relevance, admissibility, credibility, and sufficiency of each piece of evidence separately, as well as the sufficiency and interrelation of them in their entirety, based on its internal conviction founded on a comprehensive, complete, objective, and direct examination of the evidence in the case, concludes that the claim is groundless and therefore not subject to satisfaction in full," the court emphasized.
What is known about the depositor?
The depositor is Alla Shulga, the former director of the Banking Supervision Department of the National Bank of Ukraine. She was involved in a case regarding the misappropriation of 1.2 billion UAH of the NBU loan by the VAB Bank. On December 20, 2024, the High Anti-Corruption Court closed the charges against nine defendants in the case against the former deputy chairman of the NBU, Alexander Pisaruk, and others for their involvement in the misappropriation of 1.2 billion UAH of stabilization credit from the NBU issued to VAB Bank, owned by oligarch Oleg Bakhmatyuk.