Banking Ombudsman to take office soon
Institute of Banking Ombudsman, which will operate under the Association of Banks of Azerbaijan (ABA), will be launched till the end of this week.
Activities of the Institute of Banking Ombudsman are designed to provide practical assistance in overcoming differences, as well as to simplify, speed up the procedure for considering the issues that have arisen on mortgages between the bank and the borrower.
The Association reported that a website is almost ready, through which it will be possible to send appeals (www.bankombudsman.az).
Before sending an appeal to the Ombudsman, an individual must send his/ her claims to the bank in writing. In turn, the bank must provide the claimer with an answer within 30 days. An individual can apply to the Ombudsman within 60 days after receiving the answer or 30 days after the letter was sent to the bank.
The ombudsman is expected to handle disputes with the amount of a claim up to $2,000. In addition, the ombudsman activity will cover only those banks that signed the Declaration on the transfer of disputes involving individuals - clients of the financial institution to the Banking Ombudsman.
The Banking Ombudsman is not entitled to take decisions on making amendments and additions to mortgage loan agreements, including termination of (full or partial) obligations of the parties to the contract. The competence of the banking ombudsman includes holding meetings and providing banks with recommendations on the borrowers' appeals concerning changes in mortgage conditions.
The Ombudsman issues a conclusion about the possibility or impossibility of settling disputes. The Ombudsman is independent in activity, any interference in the activity when considering appeals is unacceptable.
The Institute of Banking Ombudsman exists in such countries as the United Kingdom, New Zealand, India, Kazakhstan and others.