Delta Credit violates antimonopoly legislation

30 July 2009 (10:15)

Sverdlovsk Region division of the Federal Antimonopoly Service (FAS) declared that Delta Credit Commercial Bank violated Article 11 (part 3) of the Competition Protection Act. The regional division of the service was empowered to deal with the case by Russia’s Federal Antimonopoly Service, the spokesperson for the division reports.

FAS’s Sverdlovsk Region division took legal action against Delta Credit Commercial Bank on April 7, 2009. The alleged offense consisted in the bank coordinating the activity of several lending institutions by developing the Delta Credit Mortgage Lending Standards and by promoting them. The promotion, in its turn, consisted in signing agreements with the banks that made the latter use these Standards, as this was the condition under which their mortgages could be lifted.

Such actions result in imposing certain loan contract terms upon the loan applicants/policy-holders that are neither relevant to the lending process nor appealing to the borrowers. What is more, these terms actually limit the competition on the refinancing market.

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