The Business capitalizes on elderly

The Business capitalizes on elderly

As it is known, according to the Decree N-460, April 23, 2014 of the Government of the Republic of Armenia, persons born before December 31, 1938 can receive compensation for money deposits made in the former USSR Savings Bank until June 10, 1993. In order to receive the compensation, the beneficiary must submit, among other documents, a reference from the VTB-Armenia bank about in the depositor’s bank account card.

We receive reports, that when the beneficiaries of the mentioned Decree visit the branches of VTB Bank (Armenia) to receive the deposit reference, the bank offers them to pay 1900 AMD, and directs them to wait for about three months until the compensation will be provided. Retirees usually pay that amount, convinced that the law requires it.

Our research however revealed that the bank offers the citizen to sign a power of attorney, by which the beneficiary of the deposit compensation authorizes the bank to apply to the regional Social Assistance Departments on his behalf within 90 days to receive the compensation.

In fact, it turns out that VTB Bank (Armenia) is giving document to citizens who over the age of 82, who are often on the brink of poverty, who do not have the high legal knowledge, a deep level of awareness of legislation and public administration. offer to sign it and also to pay. Thus, the bank misleads elderly customers by abusing their trust ․ Many do not even realize that the bank is just offering them a private service, that there is an alternative, to do further operations on their own, for free, faster.

This trick of a for-profit bank also makes people much older than the average life expectancy in Armenia wait three months to receive their deposit compensation.

On the occasion of the above-mentioned, the USLGPSEA sent a letter to the Prime Minister, proposing to ban the provision of paid private services to the citizens applying for the process of compensation for soviet deposits.

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