Reasons why borrowers do not read agreement terms
Nearly half of borrowers sign loan agreements remotely, through banking apps. Many people do not read the terms and conditions, mostly because the agreements are lengthy, it is necessary to click a link, or they trust the manager, are in a hurry or do not understand legal language.
These are the findings of a behavioural assessment carried out by the Bank of Russia. The regulator has identified the aspects determining how carefully financial consumers tend to read the agreement terms, what sections are considered to be the most and the least important, and what prevents people from comprehending critical information. In particular, many borrowers believe that all documents are standard and may not be changed, whereas a customer does have the right to amend the terms.
The Bank of Russia will use the results of the assessment to enhance the consumer lending regulation.