July 21, 2014. Sverdlovsk Region division of Rospotrebnadzor (the national consumer rights watchdog) considered a complaint placed by a bank customer and detected a case of consumer rights infringement: the customer was made to sign as many as six insurance contracts at one and the same time, the division's press service reports.

It was determined that Credit Europe Bank issued an automobile loan to its customer at a motor show. Six insurance contracts with different companies were signed right there at the motor show for comprehensive insurance, VTPL, MTPL, life and health insurance, loss of work insurance, and GAP insurance (which covers the actual cash value of a vehicle). Most of these policies were paid for at once, through the loaned money.

Whilst motor third party liability is required by law and comprehensive insurance is obligatory for vehicles which are used as loan security, other types of insurance made the authorities question the need to buy them.

The division of Rospotrebnadzor stated that the bank had misinformed the consumer and actually made them buy two different insurance policies that insured them against identical risks (death because of an accident or illness and inability to work due to an accident or an illness). Besides, when the customer was shown the preliminary calculations of the full cost of their car loan, all the information relating to life insurance was presented in a way that made them think life and health insurance was an indispensable part of the given loan package.

Moscow Arbitration Court considered Credit Europe Bank's complaint relating to the pronounced administrative punishment and agreed with the ruling of Rospotrebnadzor's Sverdlovsk Region division: the bank really was guilty of what had happened. The 9th Arbitration & Appeals Court supported the rulings of Moscow Arbitration Court and Rospotrebnadzor.