Federal Antimonopoly Service sues Bank Uralsib

Sverdlovsk Region’s division of Federal Antimonopoly Service took legal action against Bank Uralsib, accusing the company of violating the federal advertising legislation, the spokesperson for the Service reports.


Bank Uralsib’s advertisement on their consumer loans with a mortgage was reported to lack some essential data on the product and the terms of buying or using this loan type. There was no information about the incidental commission for providing a customer with the loan prior to having the mortgaged property officially registered by the state. Nothing was said about the insurance expenses or the requirements imposed on the mortgaged property and the borrower. Apart from that, the information about the interest rate one would have to pay on the loan in case one’s automobile was used as collateral (the rate actually comes to 18%) was missing. Finally, there was nothing about the banks right to unilaterally change the interest rate and the terms of paying the loan back.


What is more, Bank Uralsib’s ad on their consumer loans backed up by some private individuals’ guarantee is also reported to lack essential information about the product: there are no data on the requirements imposed on the borrower (like life insurance) and the guarantors; nothing is said about the banks right to unilaterally change the interest rate and the terms of paying the loan back.


Moreover, Sverdlovsk Region’s division of Federal Antimonopoly Service believes Bank Uralsib’s advertisements quote data on the cost of the product and the ways of paying for it as well as on the discounts, tariffs, and other terms of purchase that are not true. The ads are claimed to violate Article 28 (parts 3) and Article 5 (parts 7 and 3) of the federal bill on advertising.


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