How to inform borrowers of rates on loans: Bank of Russia’s recommendations
Information about interest rates on loans, which is available in lenders’ offices or on their websites, should be published only together with data on the range of values of the total cost of credit (TCC). This includes information posted on banners, loan calculator pages, and in pop-up windows. Moreover, information on interest rates and TCC should be printed in the similar font size.
The Bank of Russia’s information letter draws lenders’ attention to amendments to the Federal Law ‘On Consumer Loans’, which became effective from 21 January 2024.
According to the amended law, the TCC calculation should include all payments of a borrower, which determine loan terms (interest rate, maturity, etc.).
Moreover, now lenders must inform their customers no later than on the day following the conclusion of a loan agreement about services they have purchased together with a loan and their right to reject these services within 30 days.