Oschadbank Fees on Blocked Cards: How to Prevent Unexpected Debt.

The Issue with Oschadbank's Fees

According to Novyny.live: Oschadbank, one of Ukraine's largest state-owned banks, has been charging fees on credit cards that clients have blocked, if the formal requirements for closing the accounts are not met. This has become a significant issue for some customers, as the bank does not offer a remote card closure service. One internally displaced person encountered accumulating debts for SMS notifications, despite having blocked his card back in 2022.

The card in question was blocked by the client in 2022, but Oschadbank unilaterally extended its validity until 2028. As a result, the bank began deducting 15 hryvnias monthly for SMS alerts linked to the blocked card. The citizen who discovered this situation stated:

“I had a card for IDPs, which I blocked back in 2022. The card physically expired in 2023. I am currently abroad. I recently saw that Oschadbank independently extended my card until 2028 and is charging 15 UAH monthly for SMS notifications on a blocked card! A negative balance has already accrued, which the bank is treating as a credit debt.”

Complicated Card Closure Procedures

Closing a card is only possible in person at a bank branch, which complicates matters for those unable to visit one. To close an account, a client must submit an application and surrender the card to a bank employee. It is also crucial to note that an account will not be closed if it holds a balance or has an outstanding debt.

This case underscores the importance of clients thoroughly understanding Oschadbank's card service terms. Customers must therefore remain vigilant and pay attention to potential fees that may arise from not closing cards in a timely manner.

This incident highlights the challenges bank customers face in managing their finances, particularly with limited access to banking services. The inability to close cards remotely jeopardizes the financial well-being of some clients, especially those abroad or with limited mobility. It is important for banks to consider their clients' needs and provide more convenient service conditions.