The State Duma has advanced a bill aimed at regulating installment services operating within Russia, a move reflected in the floor document currently under discussion in the lower house of parliament.
The proposed law would establish installment providers as a distinct class of legal entities authorized to offer installment payment services. The authors argue that these intermediaries, if properly regulated, can offer their services without charging fees, allowing regulators to apply a simplified framework to their activities.
The bill sets out several obligations for operators. They would need to be listed in a dedicated register, satisfy criteria related to their own capital, and meet standards for governance and the composition of shareholders and management bodies. Oversight of these operators would be entrusted to the Bank of Russia, ensuring a centralized and coherent approach to monitoring.
Additionally, the document requires operators to share information about contracts with credit bureaus if a user has outstanding obligations totaling more than 15 thousand rubles. This transparency requirement is designed to help prevent risky lending practices and to improve the accuracy of borrower profiles in credit reporting systems.
One spokesperson emphasized that the main objective is to ensure that the installment mechanism is not used as a substitute for formal lending, which frequently occurs without meeting the lending standards currently in place. The statement came from the head of the State Duma Committee on Financial Markets, Anatoly Aksakov, in discussions reported by the press.
Earlier, the central bank leadership raised concerns about revived gray schemes allegedly aimed at stimulating real estate purchases once the concessional mortgage program winds down. The central bank heads warned that such schemes, including installments and cashback promotions, can push up apartment prices and create non-transparent conditions for buyers. These remarks are part of ongoing debates about consumer finance and housing affordability in the country.
Historically, certain loan products in Russia have surged in popularity, prompting policymakers to examine the broader implications for consumer credit markets, financial stability, and household debt levels. The current legislative effort reflects a broader trend toward increasing oversight of non-bank lending and ensuring that credit mechanisms operate under clear rules and within an accountable regulatory framework.
In summary, the bill seeks to delineate the responsibilities and oversight for installment service operators, protect borrowers, and restrict practices that blur the line between installment arrangements and traditional lending. The anticipated outcome is greater market transparency, improved risk management, and a more stable consumer credit environment for individuals across the country. Source: State Duma discussions and Bank of Russia oversight considerations.