Consumer credits

1․ Before signing the credit contract, the Organization provides the Client with an individual bulletin of essential terms of the credit, in which the individual terms of the loan to be provided to the Client are presented.

2․ The Client has the right to unilaterally terminate the credit contract without any reason within 7 (seven) working days (time for reflection) following its conclusion, returning the loan amount in full and paying interest calculated in accordance with the actual annual interest rate stipulated in the agreement.

3․ In case of early repayment, the total cost of crediting for the Borrower shall be reduced proportionally.

4․ The Client has the right to fulfill(repay) the obligations under the credit agreement ahead of schedule, regardless of whether such a right is stipulated in the credit agreement or not.

5. The credit interests shall be calculated based on the nominal interest rate. The credit interest is calculated on the actual balance of the credit.

6. The credit is provided to the Client within 1 business day after the signing of the contract. In cases when the fulfilment of credit obligations is secured by a pledge, the rights to which are subject to state registration, the credit is disbursed to the client within 2 business days after the state registration of the Organization’s pledge right.  To receive the credit, the Client submits a statement/reference containing his/her bank/card account number.

7. The Organization informs the Client about the decision regarding the loan disbursement within one working day after the decision is made. The Organization can inform the Client about the decision made regarding the disbursement of the loan on the territory of the Organization, through a phone call or an e-mail.

8. To receive the loan, the Client submits a statement/reference containing his/her bank/card account number. The credit amount is transferred to the Client’s bank/card account on the day scheduled for credit issuance.

9. After a credit is issued the Organization sends the complete information about that credit to the Credit Bureau within 3 (three) working days, and the current information about the credit is regularly updated during the entire term of the credit. Information submitted to the Credit Bureau includes the essential terms of the credit, including the amounts disbursed and repaid, disbursement and maturity dates, the interest rate, as well as the risk class, days overdue, etc.

The Client’s credit history is formed in the Credit Bureau based on the data received from all lending financial organizations. Credit history is the information about the obligations assumed by the customer, which shows the debts and guarantees, payments, payment habits or information about the obligations or their fulfillment of the subject of credit information, reflecting the credit data of the last 5 years from the time of the request.

A bad credit history can prevent the Client from getting a credit in the future. In order to avoid deterioration of the credit history or to improve the credit history the client needs to make payments according to the schedule defined by the contract and exclude the existence of overdue liabilities on existing credits.

The Client has the right to receive his/her credit history from the Credit Bureau once a year free of charge. If, according to the client, there are incomplete or incorrect data in his/her credit history, the client can contact the ACRA credit bureau to find out what data is stored about him/her and what is the source of the incorrect or incomplete information. In order to correct incomplete or incorrect data in the credit history, the client can also contact the financial organization that is the source of the incorrect or incomplete information

.Information about credit history is presented on www.abcfinance.am and www.acra.am websites.

The Client’s credit score is formed based on his/her credit history. The credit score represents an evaluation of the Client, reflecting how reliable he/she is as a borrower and how diligently has repaid his/her loans. Currently, three types of credit scores are used in Armenia: the ACRA Credit Bureau provides ACRA and FICO scores (the FICO score is used in over 90 countries), while crediting financial organizations may also use credit scores calculated through their internal scoring systems. Each type of score has its own evaluation range (for example, the FICO score ranges from 300 to 850), and the closer the Client’s score is to the maximum, the better.

Factors influencing the credit score include payment history, the size of the credit burden, the number of loans, the length of the credit history, the types of credit used, and the number of new credit applications submitted. To improve his/her credit score, the Client should take key steps such as making payments on time, repaying overdue obligations, reducing the amount and number of existing loans and guarantees, and avoiding unnecessary new credit applications.

To find out his/her ACRA score, the Client can contact the ACRA Credit Bureau.To obtain his/her FICO score or a score based on an internal scoring system, the Client must contact the crediting financial organization and request it by mutual agreement.

Information about credit score is presented on websites www.acra.am and www.abcfinance.am.

10. For credit evaluation, the Organization uses creditworthiness evaluation system and/or a FICO score. The factors that have the main influence on the income and expenses evaluation system and/or the internal creditworthiness evaluation system are: information on the Client's employment and income, their stability and periodicity, the availability of certifying documents, the amount of income, the amount and structure of expenses, including the monthly amounts allocated to the servicing of existing loans, the total amount of current loans, number of credit requests, existence of overdue obligations, etc., as well as similar information about family members and related parties. The factors considered can vary across different credit products.

For improving creditworthiness, the client must pay attention to the improvement of the listed factors and avoid the appearance of the factors mentioned in point 12.

Information on the formation of the FICO score is presented on the websites www.acra.am and www.abcfinance.am.

11. Factors that have positive impact on loan disbursement:

• presence of income
• satisfactory credit rating
• absence of overdue credit liabilities .

12. Factors that have negative impact on loan disbursement:

• unreliability of documents provided by the Client
• failure to submit required documents
• negative information received from the ACRA Credit Bureau and/or other specialized organization
• information that puts into question the information provided/declared by the Client to the Organization
• information on the borrower that puts into question the recoverability of the credit
• absence of security required for credit repayment
• other valid reasons.

13. The Client is entitled to communicate with the Organization through a preferred means of communication: e-mail or postal service. The electronic means of communication is the most comfortable. It is available 24/7 and is free of the risk of losing information in paper form, as well as ensures confidentiality.

14. "Your financial informant" is an electronic system that facilitates the search, comparison of services offered to individuals and the choice of the most effective option for the client. http/: www.fininfo.am/.

15. Disputes arising between the parties can be settled in court, through arbitrations operating in the territory of the RA or through the Financial System Mediator (as prescribed by the RA law on “Financial System Mediator”), located at 0010, Yerevan, 15 M. Khorenatsi Str, “Elite Plaza” business center, 7th floor, e-mail: info@fsm.am, telephone: (+37460) 70-11-11, fax: (+37410) 58-24-21. “AREGAK” UCO CJSC has not waived the right to challenge the decisions of the Financial System Mediator, which means that the Organization can in some cases, appeal the decisions made by the Financial System Mediator against "AREGAK" UCO CJSC in court.

16. To conduct a proper study of the client as defined by RA law on “Combating Money Laundering and Terrorism Financing”, the Organization may require additional documents or information based on “Know Your Client” principle.

17. For providing additional information on credit liabilities in the Organization: (statement, reference, etc.)  the following tariffs are applied: provision of statement on repaid loans free of charge for once, if provided within 30 days after repayment - and if provided within 31 days or more - 5000 (five thousand) AMD (VAT included). For existing loans, the provision of information once a month during the term of the contract is free of charge to every client (borrower, guarantor/s, mortgagor/s), and provision of information more than once a month is 3000 ( three thousand) AMD (VAT included) for each client (to the borrower, guarantor/s, mortgagor/s).