’s ads unlawful, FAS claims

4 August 2009 (08:51)

Sverdlovsk Region division of the Federal Antimonopoly Service (FAS) looked into’s alleged administrative offense case.

The regional public prosecution authorities had investigated the bank’s advertising materials and papers earlier and placed their files with the division so that the latter might decide whether the bank’s loan ads violated the existing legislation. The division did declare’s ads violated Article 28 (part 3) and Article 5 (part 7) of the Federal Advertising Act.

For example, the bank’s Outstanding Loans advertisement did not provide any information as to the bank’s right to unilaterally change the interest rate on the loan. Nor did it say anything about the commission taken for the issuance of the bank card, about the overdraft use charges, or about having to pay for the bank processing one’s account transactions.

All this resulted in the division ruling that was guilty of an administrative offense, with liability to follow described in Article 14.3 of the Russian Federation Administrative Offense Code. Namely, the bank will have to pay a 60,000-ruble fine.

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