OREANDA-NEWS. July 13, 2009. The Federal Antimonopoly Service (FAS Russia) initiated a case against "Absolute Bank" Joint-Stock Commercial Bank (CJSC) and 17 insurance companies, reported the press-centre of FAS Russia.

On 7th July 2009, FAS Russia also initiated a case against "CREDIT EUROPE BANK" CJSC and 18 insurance companies.

The cases were initiated after the Antimonopoly Service investigated violations of antimonopoly legislation by "Absolute Bank" Joint-Stock Commercial Bank (CJSC), "CREDIT EUROPE BANK" CJSC and insurance companies.

In the case against "Absolute Bank" Joint-Stock Commercial Bank (CJSC) and 17 insurance companies, FAS Russia is challenging the written agrements concluded as a part of mortgage loan programmes offered by "Absolute Bank" Joint-Stock Commercial Bank (CJSC). Apart from insuring the subject matter of the mortgage, the programmes include mandatory life and title insurance by the borrowers, which can be considered as unfavourable condition or a condition that is not relevant to the subject matter of the mortgage loan contract.

According to FAS Russia, the agreements have signs of restricting competition on the market of banking services; such agrements are prohibited under Clause 5 Part 1 Article 11 of the Federal Law "On Protection of Competition".

The Antimonopoly Service discovered similar signs of violating the antimonopoly legislation in the actions of "CREDIT EUROPE BANK" CJSC and insurance companies, that entered into agreements as part of the mortgage loan programme offered by the bank.

FAS Russia also believes that the above agreements have elements of violating Clause 4 Part 1, and Part 2 Article 11 of the Federal Law "On Protection of Competition", which prohibit agrements that have resulted or can result in economically and technologically unjustified refusals to conclude contracts with particular buyers (clients) and in restriction of competition.

The cases will be heard on 13th August 2009.