Clients to be aware of loan and deposit interest rates: regulators’ recommendations
The Bank of Russia and the Federal Antimonopoly Service of the Russian Federation have recommended that the terms for changing interest rates and their possible ranges be displayed in the same print as the most attractive loan and deposit rates, and no parameter be more visible than others. Clients should be able to instantly see the range of values of the total cost of credit and the minimum guaranteed deposit rate.
This is stated in the joint letter of the regulators on the disclosure of information about financial products on the websites of banks and other financial institutions.
Some creditors are now trying to avoid drawing the attention of their clients to the fact that attractive lending or deposit rates will be in effect for a short period of time and only if insurance or additional services are purchased. Banks use the same methods to attract clients’ funds to deposits. They make information on high deposit rates look bright and large, obscuring conditions that they are only valid if additional services are purchased or that the rates drop after a certain period of time.
Such practices not only mislead clients, but also result in unfair competition.