OREANDA-NEWS. September 29, 2008. The Federal Antimonopoly Service (FAS Russia) established the fact of unfair competition by recognizing that "Home Credit and Finance Bank" Ltd. violated Clause 1 Part 1 Article 14 of the Federal Law "On Protection of Competition" (disseminating false, incorrect information that can inflict damages upon other economic entities) and Clause 2 Part 1 of the Law (misrepresentation of consumer qualities of the goods), reported the press-centre of FAS Russia.

The bank was misleading consumers on the consumer loan terms and conditions when describing its credit products on its web site: it specified that the bank did not charge any commission for the loan. However, the bank included monthly commission charges in its credit facility agreements for such loans. Furthermore, the bank site gave incorrect information about the popularity of its credit products.

During the case investigation, the bank stopped charging commissions for consumer loans. FAS Russia terminated the antimonopoly case against the bank due to voluntary elimination of the violation. However, it initiated an administrative case in order to determine and impose an administrative penalty in the form of fine. Under the law, possible fine will amount 100 000 - 500 000 Rubles.

In accordance with the Regulations on processing the cases against credit organizations that violated the antimonopoly legislation, the case against the bank was investigated by the Commission formed on parity basis with the Central Bank of the Russian Federation. Members of the Commission noted that the bank charged commissions for transferring the funds to the account, paid in cash to the cash department by the clients as part of the loan repayment. FAS Russia recommended the Central Bank of the Russian Federation to carry out a special inspection of the bank.