Azerbaijan's Supreme Court has clarified that the fact of fraud in obtaining an online loan is not in itself a basis for automatically declaring the contract invalid.
As reported by the court, in recent years, against the backdrop of digitalization of banking services, remote lending has become widespread. It allows citizens to obtain a loan without visiting a bank, but at the same time creates new legal risks.
Azerbaijan's legislation allows banks to open accounts remotely and conclude loan agreements. According to Central Bank rules, when providing online services, financial organizations may use enhanced electronic signatures, video calls, video recording, facial recognition, one-time confirmation codes (OTP), and other identification methods.
Many victims believe that the fact of deception fully relieves them of legal responsibility for the loan debt. However, the Supreme Court emphasized that citizens also bear responsibility for the safety of their personal data.
"The mere existence of fraud is not enough to declare a loan agreement invalid. In each specific case, the court collectively assesses the bank's actions, its compliance with legislation, the citizen's behavior, and all submitted evidence," the Supreme Court noted.
