As an economic institution, banks are responsible for a variety of tasks, following which many legal responsibilities also arise, and as a result, banking lawsuits are a natural and common issue in the judicial system of any country. For this purpose, in this article, we have decided to review five of the most important and common types of Bank claims in Iran, while introducing banking claims in financial and credit institutions.
What are Bank claims?
The term lawsuits or banking complaints refers to all legal cases where one of the parties to the lawsuit is the bank and the rights of the bank; Or that the matter in question is somehow related to the bank or the duties and responsibilities of the bank. Also, the legal cases that should be examined based on the titles and regulations governing financial and credit institutions and banks are classified as bank-related claims.
Economic contracts that are concluded in banks and financial and credit institutions have many legal complications, and that is why in the vast judicial systems of the countries of the world, lawsuits related to banking issues are considered one of the most common lawsuits.
These lawsuits are so important that one of the branches of the commercial lawyer is called the banking lawyer. Banking lawyers specialize in the laws and regulations governing the banking system and financial and credit institutions. Today, both ordinary citizens and banks seek help from these lawyers to advance bank claims. Claims related to the bank itself are divided into several categories that we have introduced:
Types of Bank claims
To examine more closely the issue of lawsuits and complaints related to the bank, first of all, it is better to get acquainted with the types of these lawsuits. In general, legal claims related to banks and financial and credit institutions are divided into three main categories, which include:
Claims of the bank against the bank
As you know, in every banking system in every corner of the world, different banks have relationships with each other. These connections are based on economic contracts that are arranged between banks. Whenever one of the banks does not comply with the provisions of the contract, the opposite bank can use its right to file a lawsuit against the defaulting bank and pursue the matter at the level of the central bank or judicial authority. The lawsuits of the bank against the bank occur both at the national level and at the international level.
Bank lawsuits against natural and legal persons
Generally, the bank’s lawsuits against natural and legal persons include banking matters related to the facility and its repayment. As you know, when the borrower customer faces problems in repaying his loan installments, the bank can use the securities and guarantees that the customer has pledged to the bank; But if for any reason these bonds and guarantees cannot be collected, then the bank will file a legal case against the customer to receive its claims.
Another common claim of the bank against natural and legal persons is the process of auctioning the pledged property. In this case, when the natural or legal person receiving the facility commits a violation in the contracts between the person and the bank, the bank will first issue a debt payment warning and if this warning is not heeded, it will proceed to auction the pledged property.
Lawsuits of natural and legal persons against the bank
The third type of banking lawsuits and the case we are focusing on in this article is related to the lawsuits of natural and legal persons against the bank in case of banking violations. In most cases of complaints against banks by individuals, the main subject of the complaint is related to the bank’s violation of the terms of the contract that was concluded to provide facilities to the customer.
In simple words, when people receive facilities from the bank, they actually sign a legal contract with the bank, in which each party (the bank and the natural or legal person) has obligations towards each other. When the bank fails to fulfill its obligations, then the customer can file a lawsuit against the bank and bring his complaint to the central bank or judicial authority. In the following, we will get acquainted with the types of claims that the customer makes against the bank.
What are the most common complaints and lawsuits against the bank?
Before we introduce the most common claims made by customers against the bank, it is good to have a general look at the reason for the formation of these claims. As mentioned, bank contracts have many complexities and legal subtleties that make most ordinary citizens who do not specialize in legal matters sign them without fully knowing the provisions of these contracts. This issue provides the basis for the emergence of legal problems and the bank’s abuse of the customer’s lack of knowledge.
Therefore, to avoid such problems, it is recommended to use the advice of an experienced and professional banking lawyer so that you can protect yourself from bank lawsuits and spending time and energy to pursue a complaint against the bank. For this purpose, you can use the services of Dadista Legal and Arbitration Group to handle your banking affairs. One of the fields of activity of Dadista is banking cases.
By mastering the laws and regulations governing the judicial system and the Central Bank of the Islamic Republic, the expert banking lawyers of this collection will help you to conclude reliable banking contracts and, in case of any problems, to get your rights from the offending bank.
Mortgage lawsuit
When the customer submits the property deed to the bank as a guarantee for obtaining the facility and puts the property in the bank’s mortgage; As soon as the customer pays all the installments and the loan is settled, the bank is obliged to return the document to the customer and proceed with the mortgage. If the customer is in settlement mode, but the bank refuses to pay the mortgage for any reason, then the customer can sue the bank by filing a lawsuit against the mortgage.
Claims for annulment of bank proceedings issued from registration enforcement claims
Valid documents, such as the official document that is placed in the bank’s mortgage, are used to impose the terms of the contract on the obligee. Banks can, if necessary, receive executive permission from the registration office. Since these documents are dependent on the terms of the banking contract between the customer and the bank, in case of any calculation error on the part of the bank, the contract is invalidated and the issued banking procedures must also be canceled and stopped. This miscalculation can include both the principle of the customer’s debt to the bank and the mistake in the calculation of late fees or other legal costs that are included in the framework of the banking contract.
Lawsuits related to differences in the calculation and receipt of fine interest
If the customer claims that the bank has wrongly calculated the amount of interest or late payment penalty during the installment repayment process, he can request the relevant documents from the bank to check the calculations. If the bank does not cooperate with the customer in this regard and does not give him the documents related to the installment calculations, the customer can pursue legal procedures in the court by filing a lawsuit related to the dispute in the calculation and receipt of the penalty interest. Of course, proving this miscalculation is not an easy task, and the loan contract must be carefully studied and reviewed by a bank lawyer.
Lawsuits related to demanding loan installments from the guarantor
Another case of bank lawsuits brought by a person against the bank is related to the demand for installments from the guarantor. If the guarantee is in the form of a endorsed check, the bank can claim installments only for a certain period after the due date of the check. Otherwise, the lawsuit of the bank to demand installments from the guarantor will not be accepted and the guarantor can file a complaint against the bank.
Lawsuit for return of guarantee documents
This lawsuit is similar to the mortgage lawsuit: the guarantee documents, such as checks or promissory notes, which the customer gives to the bank when obtaining the facility, must be returned to the customer as soon as the loan is settled. If the bank prevents the return of these guarantee documents, the customer can file a lawsuit against the bank for the return of the guarantee documents.
How to handle banking complaints and lawsuits (customer against the bank or financial and credit institutions)
Handling of banking lawsuits in the field of complaints of natural persons and rights against the bank is done in a layered manner to separate the cases that do not need to be referred to the disciplinary board. At first, the case is investigated at the internal level and the Central Bank of the Islamic Republic of Iran announces the violation to the bank or financial and credit institution in question.
The bank or financial institution in question is obliged to send its written response to the customer within thirty working days from the time of receiving the letter regarding the handling of the matter. Here, the bank or institution presents its answer and defense, and if the answer is acceptable, the case will be closed.
But if the answer received from the bank or financial and credit institution is not acceptable to the customer, the customer can express his objection to the supervisory vice-president of the central bank. For this, it is enough to submit the complaint against the bank along with the answer provided by the bank to the central bank’s supervisory vice-president so that the case is re-examined and, if necessary, referred to the disciplinary board.
Considering the complexity of bank contracts and also the unique way that there is to deal with bank complaints, getting the help of a bank lawyer specializing in this field can increase your chances of success in the complaint case against the bank. You can contact the experts of Dadista’s arbitration and legal group right now and find out about the conditions of banking legal services.