MTS-Bank's loan agreements are discovered to violate consumers' rights
5 August 2013 (10:06)
An inspection of MTS-Bank by Sverdlovsk Region authorities revealed that the bank's loan agreements violate consumers' rights.
According to the spokesperson for the authorities, it follows from the terms of the loan contracts MTS-Bank is signing with its customers that a loan is only offered to a borrowing party provided that the latter opens an account with the bank. Now such a proviso in a loan agreement actually infringes upon the consumers' rights, as there is no legal requirement to open an account with a bank when a private individual is taking out a loan.
Besides, it follows from the loan agreements that all the disputes resulting from these loans are to be settled in Yekaterinburg Verkh-Isetsky District Court. This proviso is also in contradiction with the law, as the law states it is possible for a consumer to place a claim with any court nearest to the plaintiff's place of residence or stay, or any court nearest to the headquarters, subsidiary, or representation of a business, or any court nearest to the residence of a defendant who happens to be a sole trader.
The bank also violated the condition on providing the customer with complete and accurate information on the services offered.
So Rospotrebnadzor imposed a 10,000-ruble fine on MTS-Bank.
Sverdlovsk Region Arbitration Court ruled that the imposing of administrative punishment upon MTS-Bank was legitimate, and the 17th Arbitration Court of Appeals supported this ruling.
According to the spokesperson for the authorities, it follows from the terms of the loan contracts MTS-Bank is signing with its customers that a loan is only offered to a borrowing party provided that the latter opens an account with the bank. Now such a proviso in a loan agreement actually infringes upon the consumers' rights, as there is no legal requirement to open an account with a bank when a private individual is taking out a loan.
Besides, it follows from the loan agreements that all the disputes resulting from these loans are to be settled in Yekaterinburg Verkh-Isetsky District Court. This proviso is also in contradiction with the law, as the law states it is possible for a consumer to place a claim with any court nearest to the plaintiff's place of residence or stay, or any court nearest to the headquarters, subsidiary, or representation of a business, or any court nearest to the residence of a defendant who happens to be a sole trader.
The bank also violated the condition on providing the customer with complete and accurate information on the services offered.
So Rospotrebnadzor imposed a 10,000-ruble fine on MTS-Bank.
Sverdlovsk Region Arbitration Court ruled that the imposing of administrative punishment upon MTS-Bank was legitimate, and the 17th Arbitration Court of Appeals supported this ruling.
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