Russian President Vladimir Putin has enacted a new law that prohibits the accrual of penalties on overdue loan debts of deceased borrowers. This moratorium on fines will apply until their heirs officially accept the inheritance. The relevant document has been published on the official legal acts portal.
The law specifically forbids creditors from imposing penalties, including fines and interest, for a borrower`s failure to meet obligations under a consumer loan agreement (including mortgages) following their death. This prohibition remains in effect until the heirs formally accept the inheritance, but for a period not exceeding six months from the date the inheritance is opened, unless otherwise stipulated by Russian law or court decision.
These amendments are incorporated into Article 14 of the `Law on Consumer Credit (Loans)` and will take effect on September 1, 2025. Importantly, the provisions of this new law will also apply to legal relationships arising from agreements concluded before this date, specifically concerning rights and obligations that emerge after September 1st.
Under the Civil Code, individuals who accept an inheritance are jointly and severally liable for the deceased`s debts, including outstanding loans, in proportion to their share of the inheritance. The standard period for accepting an inheritance is six months. However, in practice, heirs are often unaware of the deceased`s outstanding loan obligations. Before formally accepting the inheritance, they frequently learn about these debts from creditors who contact them demanding full repayment, including accumulated penalties and fines, as highlighted in the supporting documents for the new legislation.
