Bank Practices and Protecting Indebted Accounts: What to Know
During a recent briefing, GV Plekhanova Meri Valishvili addressed the agency about how banks sometimes withdraw funds from Russian clients’ accounts without the account holder’s explicit knowledge. The situation, she explained, can unfold under two main circumstances: a court order or a contractual agreement that permits such transfers.
Valishvili noted that the first scenario is the more common one, with court-issued directives occasionally sufficient to authorize a deduction. This reality highlights the importance of understanding when legal processes can authorize access to funds and how those decisions are communicated to customers.
Since February 2022, banks have faced a new rule requiring them to preserve balances sufficient to cover living expenses in the accounts of indebted Russian residents. This measure aims to protect basic financial needs while investigations or settlements unfold. The expert also pointed out that if a contract contains a clause allowing fund withdrawal, the account holder’s consent to such withdrawals can be withdrawn at any time, provided the customer follows the appropriate procedure and notices are observed.
Maria Dergacheva, a former financial market expert quoted by Compare, stressed the importance of closing unused bank accounts. She warned that even accounts showing a zero balance can incur losses, underscoring the risk of forgotten accounts lingering with potential unauthorized or mistaken charges. The guidance here centers on proactive account management to minimize exposure and protect one’s funds.
Overall, the discussion underscores a balance between legal authority and consumer protection. Customers should stay informed about potential triggers that might lead to unexpected withdrawals, review contract terms for fund-access clauses, and regularly audit their accounts to ensure accuracy. Banks, for their part, are encouraged to maintain clear communication about whenever funds may be debited and to adhere to recent regulations designed to safeguard essential living expenses for vulnerable account holders. For individuals managing multiple accounts or enduring debt, these practices can help preserve financial stability and reduce the chance of inadvertent losses over time.