Borrower’s signature on loan agreement not to be replaced by phone call
A loan agreement and all amendments to its terms shall be signed by the borrower’s written or electronic signature. In its information letter the regulator says that use of other methods of confirming an individual’s consent to the terms of the agreement is unacceptable.
The Bank of Russia has identified a number of instances when lenders consider agreements duly concluded without obtaining borrowers’ signatures. For example, a bank without prior notice may send a credit card to a person by mail, and then may recognise the person’s card activation call as a ‘signature’ under such an agreement. In some situations, these cards may fall into others’ hands, which creates the risk of fraud and leakage of personal data.
The regulator believes that such practices contradict the law and may potentially violate consumer rights.