Legal framework
Due to the economic downturn in 2008, many borrowers experienced difficulty repaying loans taken before 31 December 2008. Although most of the properties pledged for these loans had been sold, the proceeds received were not always sufficient to cover the remaining liabilities.
As a result of the changes to the Credit Institutions Law, which became effective on 4 August 2020, the creditor has a right to unilaterally write off pre-crisis loan liabilities of private individuals fully or partly until 31 December 2022.
Being aware of the role of the bank not only in the good, but also in more difficult times, SEB banka, investigating each case individually, offers the possibility to write off pre-crisis loan liabilities fully of partially.
- For customers belonging to socially sensitive groups, there is a possibility to write off outstanding liabilities of up to 100%;
- For other customers, the bank will review this possibility on a case-by-case basis, based on the application submitted.
NB! Guarantors also have the possibility of having their outstanding loan obligations written off if the guarantee is granted for obligations that meet the requirements of the laws*.
Write-off of liabilities
Those customers of SEB who have outstanding pre-crisis liabilities and who meet the criteria set out in Paragraph 88 of the Transitional Provisions of the Credit Institutions Law* may request the write-off of all or part of such liabilities.
100% write-off of liabilities
Customers whose purpose of the loan was the purchase of a home, who do not own property and who belongs to one of the following socially sensitive groups, may apply for a full write-off of liabilities by submitting an application (PDF, LAT):
- large families (3+ children),
- persons to whom the status of a low-income or indigent person has been granted,
- individuals with disabilities,
- senior citizens over the age of 65.
Partial write-off of liabilities
Customers who do not belong to the socially sensitive groups but have outstanding pre-crisis liabilities may apply for a partial write-off of their liabilities by submitting an application (PDF, LAT).
Submission of documents
Applications and documents may be submitted in a number of ways:
- electronically, by sending an email to debitori@seb.lv
- in SEB internet bank under Other/Settings - E-documents, by selecting the type “Cancelation of liabilities”;
- by mail, by sending a letter to the following address: Meistaru iela 1, Valdlauči, Kekava Municipality, Kekava County, LV -1076.
Under Paragraph 88 of the Transitional Provisions of the Credit Institutions Law a credit institution may unilaterally write-off all or part of the liabilities of natural persons if they meet all the following conditions:
- the loan agreement was entered into with a private individual;
- the private individual is not and has not been a related person (in relation to the lender) within the meaning of the law On Taxes and Duties;
- the liability arises from the loan agreement which was entered into and became effective prior to 31 December 2008;
- repayment of the liability was secured by a pledge – a mortgage on real property;
- the debtor or pledgor lost ownership of the mortgaged property because of the liabilities owed to the creditor (the pledge has already been sold, but the proceeds received did not fully cover the liabilities) by 31 December 2018;
- upon cancellation of the loan, it will be recorded as a written-off asset in the books of the creditor;
- no insolvency proceedings have been instigated against the individual concerned.
