A man accuses Oschadbank of losing 50,598 hryvnias from his cards—what was the court's decision?

A client of Oschadbank began receiving messages on his phone regarding deductions from his accounts. In total, he lost 50,598 hryvnias, which the man demands the bank return. This is stated in the decision of the Novoukrainka District Court of Kirovohrad Oblast, published on September 24, 2024.

On June 30, 2023, the man started receiving notifications about fund deductions from his accounts. A total of 28,598 hryvnias was deducted from his credit card. Additionally, 10,000 hryvnias were transferred from another account to the credit card. An amount of 2,350 hryvnias was also transferred from his account to the credit card. Furthermore, 22,000 hryvnias were deducted from his credit card. The bank subsequently blocked his cards. He immediately reported to the police, stating that an unknown individual had stolen 51,000 hryvnias from his entitled card, leading to a criminal case being opened under part 4 of Article 185 of the Criminal Code of Ukraine, and he was recognized as a victim. Oschadbank confirmed in a written response that a total of 50,598 hryvnias was deducted from the credit card and indicated that the details of the payment card, including passwords and PIN codes for one-time internet transactions, had become known to a third party.

In fact, 12,350 hryvnias of the man's own funds and 38,248 hryvnias of credit funds were illegally deducted from his account, totaling 50,598 hryvnias, along with a commission fee of 1,506 hryvnias. To justify his claim for moral damages, he noted that the bank's unlawful actions caused him significant emotional distress and suffering, leading to a deterioration in his physical and emotional well-being, leaving him in a constant state of stress.

"The plaintiff had access to his accounts through the 'Oschadbank 24/7' mobile application. Transactions using the 'Oschad 24/7' internet resource were conducted correctly using all necessary details of the bank's payment card with the correct input of passwords (PIN codes for one-time internet transactions), known only to the client and directed to his mobile phone number," - stated Oschadbank.

What was the court's decision?

The court partially granted the man's claim. The transactions from June 30, 2023, involving transfers from the card account totaling 57,196 hryvnias were declared invalid. The credit obligations amounting to 38,248 hryvnias to JSC 'State Savings Bank of Ukraine' regarding the card account were recognized as terminated. JSC 'State Savings Bank of Ukraine' was ordered to restore the balance on the card account that existed before the invalid transfers on June 30, 2023. Interest accrued from June 30, 2023, until the day of the court's decision, as well as monthly payments and penalties for using the credit on the card account amounting to 38,248 hryvnias, were annulled. JSC 'State Savings Bank of Ukraine' will be ordered to pay 17,500 hryvnias (unjustly deducted funds) and 10,000 hryvnias (moral damages) to the plaintiff.

"The defendant did not provide adequate and admissible evidence of circumstances that indisputably proved that the plaintiff, as a user of the payment card, contributed to the access to information regarding the credit card, his personal account, account, or the 'Oschad 24/7' mobile application, resulting in the unauthorized use of which he personally initiated the payment transactions on June 30, 2024, transferring funds from his card account totaling 50,598 hryvnias. Thus, an unauthorized deduction of funds totaling 50,598 hryvnias occurred from the plaintiff's account, which should be returned, and the corresponding transactions should be declared invalid. Considering the above, it is reasonable to satisfy the claims regarding the recognition of credit obligations of 38,248 hryvnias to JSC 'State Savings Bank of Ukraine' regarding the card account as terminated. Also, under such circumstances, the court orders JSC 'State Savings Bank of Ukraine' to restore the balance on the card account that existed before the invalid transfers on June 30, 2023," - emphasized the court.