Basic standard for protection of CCC members’ rights approved
Consumer credit cooperatives (CCC) will be obliged to disclose the most complete information on their activity, including their participation in a self-regulatory organisation, their management bodies, and third parties acting on behalf of the CCC. This information must be available in all offices where the CCC provides its services.
This and other requirements are part of the basic standard for protection of the rights and interests of individuals and legal entities in respect of CCCs. This document has been developed by self-regulatory organisations uniting consumer credit cooperatives and approved by the Bank of Russia.
According to the standard, promotional materials distributed by CCCs must conform to the principles of reliability and trustworthiness of their contents to avoid abusing confidence or insufficient financial literacy among consumers. For example, in its advertisement, a CCC will be obliged to specify that it only provides services to its participants and that all members jointly bear subsidiary liability.
The document also regulates the relations between CCCs and consumers in case of any disputes: a CCC must respond to any consumer request within 15 business days. This mechanism will allow incidents to be resolved faster and without the need for mediation. In case of any overdue debt on the part of a consumer, the CCC will be obliged to inform them about the debt on a no-fee basis and within seven days from its occurrence. Moreover, the document provides for a detailed procedure to restructure the debt.
The basic standard regulates CCCs’ relations not only with individuals but also with small / medium-sized enterprises and other legal entities. The standard also contains recommendations on CCCs’ interaction with persons with disabilities.
The basic standard will be mandatory for all CCCs regardless of their participation in the SRO and will come into force in 2018.