Some banks in Azerbaijan charge clients additional insurance fees and service commissions, often presented as protection against financial risks such as job loss or fraud.
These charges frequently cause dissatisfaction, as many customers do not know whether such services are mandatory, if they can refuse them, or how to recover funds already deducted.
At the center of the issue is a legal question: Can banks offer paid add-on services without a customer’s explicit consent, and does this violate consumer rights under Azerbaijani law?
Banking expert Ismayil Mammadov, commenting on the situation, said that the core principles of banking are transparency, trust, and safety. According to him, no bank has the right to impose an insurance product on a client.
“Such services can only be provided with voluntary consent. A client has the full right to decline them at any time. If a bank claims that these services are ‘mandatory,’ that is illegal and unethical. It is the bank’s responsibility to ensure secure operations-3D Secure systems, SMS verification, and risk monitoring-without charging extra. Selling ‘fraud-protection insurance’ does not exempt banks from their obligations.”
Mammadov stressed that under Azerbaijani law, no paid service can be charged without clear, informed consent from the customer.
Articles 422 and 423 of the Civil Code, as well as Article 10 of the Law on Consumer Protection, require that all contract terms be disclosed transparently in advance. Add-on services such as unemployment insurance or fraud-protection insurance may only be activated after written or electronic confirmation by the client. Without consent, any deductions are considered illegal.
According to the expert, Azerbaijan’s legislation provides strong consumer protection. In cases of unauthorized deductions, the bank must:
Provide a written explanation and return the money upon customer request;
If the response is unsatisfactory, the client may file a complaint with the Central Bank of Azerbaijan;
Additionally, submit a complaint to the State Service for Antimonopoly and Consumer Supervision under the Ministry of Economy;
If necessary, take the case to court.
He noted that any changes in banking tariffs or service terms must be communicated to customers at least 30 days in advance, and clients must be fully informed before receiving a card or signing a contract.
Payment schedules for such services, he added, may be monthly or annually, depending on the bank’s policy.
Source: Qaynarinfo
