Oschadbank withdrew more than 74,000 hryvnias from accounts without the client’s permission

Oschadbank withdrew more than 74,000 hryvnias from accounts without the client’s permission

A man lost 74,830 hryvnias from his accounts at Oshchadbank. He accuses Oshchadbank of insufficient protection and security of his funds.

This is stated in the decision of the Pechersk District Court of Kyiv, published on July 30, 2024.

On September 17, 2022, credit funds were withdrawn from the man’s credit card in the amount of 72,000 hryvnias and 630 hryvnias as a commission for withdrawing credit funds, as well as 2,200 hryvnias from his salary card. He urgently reported this to a bank employee and the police, who registered a criminal proceeding under Part 1 of Article 190 (fraud) of the Criminal Code of Ukraine. From September 17, 2022, to November 1, 2022, 2,885 hryvnias were debited from his account to pay monthly payments to repay the credit debt. In addition, on September 29, 2022, he returned 24,000 hryvnias to his credit card from the funds that were debited on September 17, 2022.

The man believes that since the funds were withdrawn without his knowledge and direction, the bank failed to ensure the proper protection and security of the funds, and therefore is obliged to return the funds to the client’s account. He requests to oblige the Main Directorate for Kyiv and Kyiv Region of JSC "Oschadbank" to eliminate the violation of the rights of a citizen of Ukraine as a consumer of financial services.

"According to Article 87 of the Law of Ukraine ’On Payment Services,’ the payer is liable to the provider of payment services under the terms of the payment services agreement. The procedure for issuance/acquisition of payment instruments, including electronic payment means, is defined by the Regulation on the Procedure for Issuance and Acquisition of Payment Instruments, approved by NBU Resolution No. 164 of July 29, 2022. According to clause 140 of Section VII of Regulation No. 164, the user is obliged not to disclose individual account information and immediately notify the issuer of the loss of such information. Transactions for transferring funds to another bank card were confirmed by the plaintiff through biometric data and/or access code. The entrance to the DBO Mobile Banking system ’Oschad24/7’ and the transfer operations were carried out correctly, which is possible only using bank card details, SMS passwords, and push notifications on the plaintiff’s phone," Oschadbank noted.

The court denied the man’s claim. The operations using the internet resource were conducted correctly with all the necessary payment card details, indicating no fault on the part of the bank.

"The transactions for transferring funds in the amount of 74,830 hryvnias (including commission) were carried out on September 17, 2022, on the internet using the DBO system ’Oschad 24/7,’ authorization was executed using payment card details, CVV code, financial number, and codes received in messages, known only to the cardholder, therefore JSC ’Oschadbank’ is not responsible for these transactions," the court emphasized.