OREANDA-NEWS. Under the mandate of the General Prosecutor's Office of the Russian Federation, in July 2007 the Federal Antimonopoly Service (FAS Russia) checked if the "Russian Standard Bank" CJSC observes the antimonopoly legislation and the laws on advertising in offering and servicing consumer credits, reported the press-centre of  FAS Russia.

As part of its mandate, FAS Russia requested the necessary documents and undertook field review measures in Moscow. It was established that the actions of the "Russian Standard Bank" did not breach the antimonopoly legislation and the laws on advertising.

Comprehensive examination revealed the following.

Individuals interested in getting a consumer loan can study the Terms of offering and servicing credits and the "Russian Standard" cards and the Rates on credits and the "Russian Standard" cards, which they can obtain from the bank managers or take at the information tables situated at the loan formalization locations.

When formalizing a credit, managers of the "Russian Standard Bank", prior to signing a credit agreement, allow the clients to study against signature a payment schedule on consumer credit. The schedule specifies the effective interest rate on the credit, calculated in accordance with № 1759-U Instructions of the Bank of Russia of 12th December 2006.

Analysis of the Terms of offering and servicing credits and the "Russian Standard" cards showed, that the bank uses only two procedures to notify the clients on changes and additions to the terms and rates: putting printed copies of the new editions on informational stands at its branches and representative offices; and placing information on the bank web-site at: www.bank.rs.ru.

At the same time, when signing an offer statement on entering into a credit agreement or a credit card agreement, the clients record separately the fact that they have familiarized themselves with the terms and rates on credits and the "Russian Standard" cards, and accordingly with a possibility of making unilateral changes or additions to them by the bank, as well as with the methods of receiving information about the changes.

According to the presented information, in the last six months the "Russian Standard Bank" has been improving the procedures for communicating information to the clients. In that period the effective interest rate on consumer credits was reduced in 1,3 - 2 times.

Taking into account citizens' discontent with the activities of the credit organizations granting consumer credits, FAS Russia considers that prior to passing the Law "On Consumer Crediting" the Government of the Russian Federation should issue a Resolution on the procedures of informing the credited party.

Legal grounds for adopting the above Resolution are based on the provisions of Clause 1 Article 10 of № 2300-1 Law of the Russian Federation of 07.02.1992 "On Protection of Consumer Rights", under which the list and methods of communicating information on certain types of services is set by the Government of the Russian Federation.

Based on the analysis of the credit granting practice of several banks, FAS Russia believes that the Resolution should define the following actions of the credit organizations as mandatory:

- Providing a payment schedule on consumer credit prior to signing a credit agreement;

- Giving information on all possible expenses associated with a consumer credit, including effective interest rate, prior to signing a credit agreement;

- Sending information on all changes and additions to the terms of offering and servicing the credits personally to each client.

Therefore, FAS Russia approached the Government of the Russian Federation suggesting to instruct the Russian Ministry of Health and Social Development to devise the Resolution in question jointly with the interested federal executive bodies and the Bank of Russia.