Based on National Bank of Serbia (NBS) measures, the total amount of receivables that banks will not collect from users amounts to 2.94 billion dinars, said the NBS.
Conducting bank supervision procedures in the field of consumer protection, the NBS has determined certain irregularities concerning the acting of banks towards natural persons – holders of the so-called “inactive” current accounts.
These are accounts that users have not used for a number of years to carry out payment transactions, and on which they have a certain amount of debt, which significantly increased due to the long-term charging of account maintenance fees and interest on unauthorized overdrafts, i.e. default interest, said the NBS.
In some accounts, a negative balance existed already at the time of the last transaction by the user, while in some cases, due to the calculation of the account maintenance fee, the user entered an unauthorized overdraft, whereafter the accrual of interest began, it explained.
Based on the NBS order in those supervision procedures, three banks made a permanent write-off of receivables worth 735 million dinars, with around 49,000 users included.
After that, the NBS sent a request to the remaining banks to act in the same way, so 16 more banks permanently wrote off their receivables based on inactive accounts in the amount of 2.2 billion dinars, with the write-off (full or partial) including around 157,000 users.
In regard to all written-off receivables, banks cannot initiate the enforced collection procedure, and the data on the arrears are deleted from the Credit Bureau records, no later than three years after conditions for the write-off of those receivables were met, in accordance with the NBS opinion.