OREANDA-NEWS. On April 13, 2009 the 9th Arbitration Appeal Court in Moscow dismissed the appeal of "Home Credit and Finance Bank" Ltd. (KhKF Bank" Ltd.) on revoking the ruling the Moscow Arbitration Court and upheld the Resolution of FAS Russia on imposing a fine upon the bank for engaging in unfair competition, reported the press-centre of FAS Russia.

On 18th September 2008, the Federal Antimonopoly Service found that "KhKF 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 Article 14 (misleading with regard to consumer qualities of the goods).

The Bank was misleading its customers regarding the terms and conditions of consumer credits. According to the information on credit products at the bank web site, the bank did not charge a commission for provision of credit. However, the bank included monthly commissions for allowance of credit in the credit agreements drawn up by the bank. Also the bank put incorrect information about the popularity of its products.

Under Article 14.33 of the Code of the Russian Federation on Administrative Violations, actions recognized as unfair competition and forbidden by the antimonopoly legislation of the Russian Federation are punishable by administrative charges in the form of a fine.

On 18th December 2008 FAS Russia issued a resolution on imposing a 300,000 Rubles fine upon "KhKF Bank" Ltd. for committing an administrative offence.

"KhKF Bank" Ltd. disagreed with the resolution of the antimonopoly authority and appealed to the Moscow Arbitration Court arguing that FAS Russia failed to prove that the actions undertaken by the bank constituted an administrative offence.

At the same time "KhKF Bank" Ltd. did not appeal the FAS Russia's decision on recognizing that the bank had violated the antimonopoly legislation.

On 18th February 2009 the Moscow Arbitration Court dismissed the claim of "KhKF Bank" Ltd. on invalidating and canceling the FAS Russia's resolution that had imposed a fine upon the bank.

On 13th April 2009 the case was heard by the 9th Arbitration Appeal Court that supported the FAS Russia's position and upheld the ruling of the Moscow Arbitration Court, which confirmed legitimacy of the resolution adopted by the Antimonopoly Service.