Loan disbursement fee is viewed as unfair practice by the Bank of Russia
28 August 2020
News
In the course of conduct supervision, the Bank of Russia has found out that certain non-bank financial institutions charge a loan disbursement fee from consumers for crediting consumer loans to their accounts.
The regulator believes that such practice increases individuals’ expenses and violates their consumer rights. The Bank of Russia has forwarded an Information Letter to microfinance organisations, pawnshops, consumer credit cooperatvies, and agricultural consumer credit cooperatvies which communicates that since the loan disbursement service is inseparable from the loan provision service, it cannot be fee-based.
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