Ukrainians are having their bank cards blocked en masse due to utility debts: what is happening and how to escape

Ukrainians are massively deprived of access to their bank accounts due to utility debts. There are hundreds of thousands of people in the debtor register who have not paid their bills, and all of them will sooner or later lose access to their cards. The trial of the debtor lasts only about two months and without the invitation of the defendant. After the decision, the executor opens the case, and first of all he sends letters to the bank. And according to the current law, any bank is obliged to seize the account of its client if required by the executor of the court decision.

About how Ukrainians can be punished for debts, what rules apply and what needs to be changed.

How can they be punished for utility debts?

What they cannot do during war. They have no right to cut off utilities for debts during martial law. Also, utilities will not be forcibly collected from displaced persons in settlements where military operations are ongoing. However, this does not mean that you don’t have to pay for utilities. Firstly, no one will write off the old debt and sooner or later it will have to be paid. Secondly, in addition to shutting off utilities, there are other methods of influencing the debtor.

But they can sue debtors. The register of debtors includes 627.1 thousand Ukrainians who lost in court cases regarding utility debts. The trial follows a simplified procedure. For example, as stated in the materials of case No. 643/5130/23, in June of this year, Kharkov Heating Networks filed a lawsuit against the owners of an apartment that does not pay for heating. And already in August, two months later, the court ordered the debtors to pay more than 89 thousand UAH. This is debt that accumulated from 2016 to February 2022.

The head of the condominium association in the suburbs of the capital, Irina, says: for most debtors, a letter warning them of their intention to sue is sufficient. However, there is no point in suing for small debts. “Litigation is expensive. Now the court fee is almost 3 thousand UAH, and then this money can be recovered from the debtor. If a person does not pay for utilities, of course, he will lose the case. But it’s not only necessary to win the trial, but then you need to receive these debts through the executive service. If the debt is several thousand, then there is no point in going to court,” says the head of the condominium association.

What utility debts can lead to:

• the executor of the judgment may seize the debtor's property;
• according to the executor’s letter, all bank accounts must be frozen;
• if information about debts is transferred to the Credit History Bureau, this may prevent you from obtaining a loan in the future;
• the executor can take away the debtor's property (up to and including the teapot).

Pensions are also seized. By law, they can take away up to 50% of the pension payment. For example, if a pensioner receives a monthly payment of 4,800 UAH, then due to utility debt, 2,400 UAH may be written off from him. At the same time, the cost of living for a pensioner is UAH 2,093. The Constitutional Court decided by its decision that it is impossible to cut the pension so that its size is less than the subsistence minimum.

The size of utility debts has skyrocketed

Mikhail Kochubey, director of the communal enterprise “ZhEK-4” in Brovary, told OBOZREVATEL: during the full-scale war, the population’s debts approximately doubled. On the one hand, it has indeed become more difficult for Ukrainians to pay for utilities due to the worsening economic situation and the rise in prices of some utilities.

However, more often than not, those who really cannot pay their bills have applied for subsidies and are paying regularly. But those families that do not need government assistance often ignore their utility debt. Someone has gone abroad and does not want to rent out their apartment; some take advantage of the fact that they cannot turn off their utilities during a full-scale war.

The exact size of utility debts is unknown. Before the full-scale war, these statistics were published by the State Statistics Service, but now the information is not collected or made public. A few months ago, the Union of Utility Services Consumers estimated the debt at UAH 140 billion. This is a record amount for Ukraine.

This situation threatens the stable operation of utility companies. If Ukrainians do not pay, for example, for water, the water utility cannot pay for electricity or reagents. As a result, the water supply of all customers is at risk, including those who pay regularly.

In Ukraine, a situation has arisen where Ukrainians can accumulate utility debts with impunity. Another problem: not all court decisions are implemented. Private enforcer Anatoly Telyavsky is sure: a situation where a debtor can refuse to pay with impunity even after a court decision violates the right to justice.

On the one hand, it is necessary to change the debt collection procedure. On the other hand, there is a problem with the solvency of Ukrainians. In a normal situation, a family spends no more than 10% of its income on utilities. In Ukraine, however, this figure is often (except for subsidies) several times higher. Therefore, in addition to collecting debts, the state should also work to achieve an increase in prosperity and an increase in wages.