Hooked. The new law on consumer credits will not protect the citizens from all tricks of the banks

When a townsperson of Moscow paid off a credit, she had no idea she would have to deal with the bank in courts three years later. 500 roubles that were credited to the account with a delay turned into a significant amount in three years’ time. The bank demanded 161 thousand roubles from the client, and even the court was unable to defend her. And all this only a few days before the consumer credit law entered into force. The purpose of the law is to protect borrowers from such situations, inter alia. The main novelty is the obligation of the banks to announce the entire sum of the credit, at the first page of the agreement and in large letters. However, the banks still employ dozens of tricks, which enable them to extract profits from their clients’ inattentiveness.

Dmitry Zabrodin, Associate of the Law Firm "YUST", reminds that credit provision on the terms of obligatory insurance breaches the consumer’s rights and several laws. The lawyer states: “Only voluntary insurance of liability by the borrower is allowed”. It is important to know that if you refuse insurance, the bank may set a higher interest rate on the credit. According to D.Zabrodin, the Higher Court of Arbitration of Russia ruled such practice legal, but the difference between the higher rate and the rate of the insured credit cannot be discriminative.

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