Court rules in favor of fining Home Credit and Finance Bank

Moscow Court of Arbitration declined the claim placed with it by Home Credit and Finance Bank Ltd and ruled in favor of the Russian Federation Federal Antimonopoly Service’s decision to fine the bank for violating the antimonopoly legislation through unfair competition. The fine was imposed on the bank on December 18, 2008.

The Federal Antimonopoly Service stated on September 18, 2008 that Home Credit and Finance Bank had violated Article 14 (part 1, paragraph 1) of the Federal Bill on the Protection of Competition (disseminating inaccurate or false data that could damage other businesses) and Article 14 (part 1, paragraph 2) of the Federal Bill on the Protection of Competition (misleading the customer as to the consumer properties of the products offered).

The bank was believed to misinform its customers as to the terms of their consumer loans, since the online ads placed via the bank’s website claimed there was no commission for offering a loan. However, the bank did include the monthly commission for servicing the loan into the bank-customer agreements.

Home Credit and Finance Bank denied the legitimacy of the fine that had been imposed on it by the Service, so the case was contested in Moscow Court of Arbitration. Having looked into the case, the court supported the Service’s original decision, though.


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