The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan published consumer guidance on how borrowers can use the bank ombudsman to resolve loan-related disagreements with banks when the parties cannot reach a settlement. The guidance notes that the ombudsman provides services free of charge, acts as a mediator, and that decisions are binding on financial organisations, while borrowers who are dissatisfied with the outcome may still apply to the agency. The bank ombudsman can review disputes on changes to loan agreement terms, debt restructuring and the performance of obligations under a bank loan agreement. The guidance lists situations where the ombudsman cannot be approached, including cases that are in court or already decided by a court, repeat applications without new circumstances, complaints without evidence the borrower first applied to the bank, applications from legal entities or individual entrepreneurs or unauthorised third parties, microfinance loans (which should be directed to the microfinance ombudsman), and matters related to fraud. It also sets out required documentation, including the loan agreement and repayment schedule, any amendments, copies of the borrower’s application to the bank and the bank’s response (or proof of no response), and documents evidencing a deterioration in financial condition; after reviewing the documents, the ombudsman analyses the case and proposes a solution, including restructuring terms aligned to the borrower’s financial situation where agreement with the bank cannot be reached.

Original source View in tracker