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Debtors' association to file suit with European Court of Human Rights

Author: Roberta Mlinarić

ZAGREB, Feb 1 (Hina) - The association "Blokirani", formed by citizens whose bank accounts have been blocked, is preparing to file a lawsuit with the European Court of Human Rights in Strasbourg after the Croatian Constitutional Court dismissed its complaint asking that the court establish if the Distraint Act was in line with the constitution.

The association's president, Miriam Kervatin, said the lawsuit was expected to be filed with the Strasbourg court in February.

Three years ago the association asked the Constitutional Court to abolish the Distraint Act and quash all distraint orders passed on the basis of distraint legislation in force until then.

The association's main objection regarding the Distraint Act was that it increased rather than reduced the debt of citizens with blocked bank accounts, and that the number of such people had increased from 25,000 to 330,000 in only a couple of years.

"Responsibility undoubtedly rests with debtors, that should be said, but we want to warn about the absurdity of the distraint model that multiplies the debt instead of helping settle it since responsibility rests both with debtors as well as the state as, for example, we have always paid the highest loan interest rates or the highest prices of telecommunications services," Kervatin said.

She said that the association did not deny that the institute of asset blockade in the case of a debt existed in Europe and the rest of the world. "But that blockade is temporary and you try to reach a settlement in court, declare bankruptcy or try to solve the problem some other way. In Croatia the situation is different. 330,000 families have been blocked and every six months their debt increases by half a billion kuna," said Kervatin, confident of the success of the lawsuit.

(Hina) rml

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