Russian banks will be obliged to exchange inform borrowers about the risks of the rising cost of credit
The Russian state Duma on Wednesday adopted in first reading by the Ministry of Finance developed a bill requiring banks to notify borrowers who take loans in the currency about the risks associated with exchange rate fluctuations, reports TASS.
The document introduces changes in article 5 of the Federal law “On consumer credit (loan)”. In the case of its adoption, the rule will take effect three months from the date of publication of the document. The bill was introduced in the state Duma on 21 January 2016 at the initiative of the Russian government.
To existing standards related to the fact that the citizen is informed of the full rate on the loan, the draft adds a provision that if the loan currency differs from the currency of the borrower’s income, the citizen may incur significant financial losses in the event of currency fluctuations.
As explained by Deputy Finance Minister Alexey Moiseev at the plenary session in the state Duma, the bill requires written notice to the borrower in the documents on the first page of the contract size of font not smaller than the largest font on the page and in the black square, which covers an area of not less than 5% of the first page of the contract, on which the full loan rate.
The official said that the bill implies the same mandatory notice from the lender in point of service, including the Internet.