Banks have been found to offer loans through their remote channels without adequately informing individuals about the nature of the agreements or the contracting parties involved. This lack of clear communication leaves consumers unsure whether they are entering into a loan agreement with a bank or a microfinance subsidiary. Consequently, many customers are left without understanding the type of loan they have taken out or its specific terms. This situation has led to the conclusion that banks are misselling financial products, which damages trust within the financial market.
The Bank of Russia has identified six credit institutions, including two systemically important ones, that engage in these practices. The regulator has demanded that these banks revise their approaches to providing information within a specified timeframe.
