The press service of Rospotrebnadzor explained that banks often violate four core consumer rights: the right to free choice, service security, access to necessary and reliable information, and the overall quality of service. Banks may not impose extra services, refuse service, or fail to protect personal data without the borrower’s consent. They should not provide information or documents about the consumer characteristics of a financial product, nor mislead the borrower. Finally, banks must not withhold documents or violate the terms of service provision.
Unilateral Waivers and Commissions
Across many cases, banks breach consumer rights within loan agreements. Representatives highlighted four primary violations common in practice.
First, a bank may terminate a loan agreement unilaterally without recognizing the reasons required by current law. Second, the borrower may be coerced into accepting additional paid services, such as insurance, or commissions. Fees can be charged for simple actions like printing cash at a teller, withdrawing from an ATM, or allocating funds to loan repayments.
Third, a bank may bill for informing the consumer about card transactions through SMS, push notifications, or clauses related to extra services, all without the debtor’s consent. Fourth, payments under the contract might be limited to bank transfers or the assignment of rights, without the borrower’s consent.
Nikita Suklin, a lawyer at Yukov & Partners, noted that receiving 6,000 complaints to Rospotrebnadzor signals significant issues in consumer credit. He also cautioned that these figures may understate the true scale of abuse, as some borrowers tolerate or ignore the practices.
Officials from the Central Bank of the Russian Federation told socialbites.ca that complaints about unwanted add-ons or high commissions during loan origination have risen slightly. The bank noted that borrower consent for extra services is being documented, even as overall customer complaints about banks declined. In the first half of 2023, the regulator registered 80.3 thousand complaints, down 13.5% from the previous year.
Galaktion Kuchava, head of the Popular Front’s regional bloc for the “For the Rights of Borrowers” project, pointed out that banks leverage their market position to push terms that borrowers may feel pressured to accept. He argued that consumers are eager to obtain loans, and banks exploit that need to secure agreements.
When a financial institution unilaterally refuses a loan, the consumer loses predictability and legal certainty—the fear that the bank could alter the terms or withdraw support at any moment undermines financial planning.
Unwanted Services and Excessive Interest
Borrowers often sign up for services because contracts show a default option to mark consent, even when the law prohibits automatic consent. An expert noted that banks weather this through a simple checkbox in the contract form. At the same time, the collection of various commissions remains a significant income stream for banks, so they resist eliminating these charges.
Timur Aitov, head of the financial security commission of the council of the Russian Chamber of Commerce and Industry, called the introduction of additional services in lending a central rights violation. He cited a case: a loan offered at 10% interest may require a 30% insurance premium. If the client refuses the insurance, the loan could carry a much higher implied rate, or the loan could be unavailable without insurance. The result is often a forced consent to a “voluntary” insurance contract.
Kuchava added that managers may apply unnecessary security labels during the loan application and offer insurance against unlikely fraud, even suggesting services like astrology or fortune-telling as part of a package. He warned that the list of such practices is long and the methods vary, sometimes leaving borrowers stunned.
The price tag on these additional services can reach substantial sums, sometimes totaling hundreds of thousands of rubles, according to Alexander Tishchenko of the Consumers Union. Suklin emphasized that the law requires banks to inform customers about add-ons and obtain consent. He cautioned that a lawyer’s sole determination of payment form is a privacy violation and can trigger additional costs for the borrower.
Protection for Borrowers and the Cooling-Off Window
Under the current framework, optional insurance and other add-ons can be waived. Borrowers have a cooling-off period of 14 days from the date the optional insurance contract is signed, during which they can terminate the contract and receive a full refund. The bank is not allowed to rewrite loan terms after the contract is signed.
When borrowers feel their rights were violated, they should file a complaint with the central bank, file a civil suit, or reach out to the financial ombudsman or a consumer protection agency. The central bank has signaled supervisory actions to curb add-ons and has announced rule changes. Beginning January 24, 2024, the cooling-off period extended to 30 days, giving borrowers more time to revoke add-ons. A separate law prohibits the assignment of loan rights without the borrower’s consent, and the central bank continues to intervene in cases of violation.
Kuchava advised that a separate agreement should be used for each additional service, making it harder for banks to bundle in extras. If a loan is not urgently needed, it may be wise to wait for the new framework to take effect. He also urged borrowers to gather sufficient evidence—copies of documents, photos, audio, and video—to prove misuse. He suggested documenting conversations with bank staff and keeping records to ensure the rights can be protected calmly, not under pressure.
In practice, if a bank employee tries to push an unwanted service, the borrower should record the encounter and file complaints with supervisory authorities. If chasing every detail feels overwhelming, consulting with a financial marketplace or loan comparison service can help locate more favorable terms, though due diligence remains essential. An industry expert observed that only a minority of bank staff explain all loan terms, and many borrowers are unaware of all clauses when signing. The key reminder is that a signed contract is binding, and all terms included in it stand.