The authors of the Diagnostic Review of Consumer Protection and Financial Literacy conducted research on financial loans, and found that, until 2018, unlimited fines and penalties were placed on overdue loans. Then, changes in legislation made it so that the fines and penalties should not exceed the amount of the loan.
The head of the research committee, Artur Harutyunyan, said that a change was made to the Tax Code of Armenia, which states that if banks forgive fines and penalties, people will be exempted from tax liabilities. “In this case, there is some movement. Banks forgave fines and penalties that have accumulated from the past.”
Another author of the review, Nune Danielyan, said that the process to forgive fines and penalties is done based off of an application completed by the individual. However, there are many cases in which citizens do not know that they have the opportunity to decrease their fines and penalties, and they do not go to court.
