OREANDA-NEWS. November 14, 2007. The Federal Antimonopoly Service recognized that advertising materials of "Home Credit and Finance Bank" Ltd violated Clause 2 Part 2 and Part 3 of Article 28 of the Federal Law "On Advertising" and issued the determination to terminate the violations of the Russian legislation on advertising, reported the press-centre of FAS Russia. 
"Home Credit and Finance Bank" Ltd advertised the following credits:

- "Start bez Komissii" [No Commission] advertising campaign in St Petersburg print media in June 2007,
- "Voyage-Credit" advertising campaign in December 2006,
- "Credit 10-10-10 Variant advertising campaign in December 2006 - March 2007,
- "Mobilnaya Desyatka" advertising campaign in December 2006 - March 2007

Each of the advertising materials specified several credit terms, defining the cost of credit for the borrowers (for instance, minimum and maximum credit interest rate, or additional charges as a commission for opening a loan account).

The advertisements also indicated that the above credit terms were subject to change depending on various conditions. The advertisements, however, did not specify the remaining credit terms determining and affecting the actual cost of credit for the borrowers.

Credit terms defining the cost of the advertised credits for the borrowers include the amount of credit, term of the credit agreement, interest rates, lump-sum and recurring payments, as well as other terms if their inserting in a credit agreement can affect the sum which the borrower must pay the creditor under the credit agreement.

FAS Russia recognized that advertising materials of "Home Credit and Finance Bank" Ltd violated Clause 2 Part 2 and Parts 2 and 3 of Article 28 of the Federal Law "On Advertising" and issued the determination to terminate the violations.

Reference:
Clause 2 Part 2 of Article 28 of the Federal Law "On Advertising"": Advertisements of banking, insurance or other financial services must not conceal other terms of relevant services that affect the amount of proceeds gained or expenses incurred by the persons who use the services, if at least one of such terms is advertised.

Part 3 of Article 28 of the Federal Law "On Advertising": If advertisements of services related to credit granting, using or repaying contain at least one term affecting its credit cost, such advertisements must contain all remaining terms that determine and affect the actual cost of credit for the borrowers.