Contracts and debts

Loan taken out in my name by fraudsters: what to do under Georgian law

What to do if someone took out a loan or microloan in your name without your consent: how to show that you did not conclude the contract, how to dispute it with the lender, how to correct your credit history and how to file a police report.

What to do

  1. A transaction is an expression of a person's will (Civil Code of Georgia (CC), Art. 50); a contract exists only if the parties agreed on its terms, so without your consent there is no contract (CC, Art. 327). The lender must prove that the contract was concluded with you and that the money was issued (Civil Procedure Code of Georgia (CPC), Art. 102): request a copy of the contract, the identity verification data and the account to which the money was sent.
  2. A relative or acquaintance acting “on your behalf”: a contract concluded in your name without authority is valid only with your consent (CC, Art. 111). If the bank asks you to confirm consent, do not confirm it: consent is given within two weeks of the creditor's request, and silence counts as refusal (CC, Art. 111); if consent is refused, the person who acted in your name answers to the creditor (CC, Art. 113). Do not pay on the loan for them, as this may look like approval.
  3. Immediately notify the creditor in writing that “I did not conclude this contract”: banks and MFOs must accept a claim orally, in writing or electronically (NBG Consumer Protection Rules, Art. 13); the reply to a written claim is due no later than 1 month (NBG Consumer Protection Rules, Art. 13). If the reply is a refusal, file a complaint with the National Bank of Georgia.
  4. Credit history: a credit history extract can be obtained free of charge three times a year (NBG Credit Bureau Rules, Art. 8); a claim about an entry can be filed with the bureau, the National Bank or the Personal Data Protection Service (NBG Credit Bureau Rules, Art. 8); the bureau must review the claim no later than 10 working days (Art. 9); a justified claim is fulfilled no later than 1 working day (Art. 9); the creditor must correct or delete inaccurate data (Art. 6).
  5. Police: fraud is a crime (Criminal Code of Georgia (CrC), Art. 180), as is the use of a forged identity document (CrC, Art. 362). Attach the police report number to your claims.
  6. If a lawsuit has already been filed: the response to the claim is due within the court's deadline, no more than 14 days (complex cases: 21 days) (CPC, Art. 201).
  7. Where to apply: bank or MFO, then the National Bank of Georgia; the credit bureau (Creditinfo); the Personal Data Protection Service; the police (Ministry of Internal Affairs); the court.
  8. Evidence: credit bureau extract, SMS messages from the creditor or collectors, the claim with a receipt mark, the police report number, evidence that you did not take out the loan (you were elsewhere, you had a different phone, your ID was lost).
  9. Pitfalls: paying “to avoid spoiling your credit history” or signing a “confirmation of consent” at the bank's request, which risks approving the contract; oral conversations with collectors instead of a written claim; not reporting the fraud to the police.

Be sure to check

  • without your expression of will there is no contract; the lender must prove that the contract was concluded and that the money was issued
  • a written claim to the lender (“I did not conclude the contract”) with a reply within the set period; a complaint to the National Bank
  • correcting the credit history: extract, claim to the bureau, the National Bank or the Personal Data Protection Service, and the deadlines
  • a police report (fraud, forged document)
  • if a relative acted: a contract concluded without authority does not bind you without your consent; on the creditor's request for consent, the deadline and the consequence of silence (refusal); do not approve it by paying

Provisions in force (texts in Georgian)

საქართველოს სამოქალაქო კოდექსი

საქართველოს სამოქალაქო საპროცესო კოდექსი

საქართველოს სისხლის სამართლის კოდექსი

This is an overview, not legal advice. Deadlines and amounts follow the current wording of the law — check them against the text of each article.

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