Bank of Moscow fined for colluding with insurers

11 February 2010 (10:41)

Sverdlovsk Region division of the Federal Antimonopoly Service ruled that Bank of Moscow violated Article 11 (part 1, paragraphs 1 and 5) of the Competition Protection Act, the spokesperson for the division reports.

The legal proceedings were instituted against the bank when it was suspected of violating the antimonopoly agreement.

‘The offense consisted in the fact that Bank of Moscow adopted a certain order of issuing consumer loans, car loans, and mortgages to private individuals. Also, the bank signed certain agreements with fourteen Yekaterinburg-based insurers; the implementation of these agreements resulted in infringement of such conditions upon the borrowing parties that were both disadvantageous and irrelevant. For one, the customers had to insure their life and earning capacity in favor of the bank. What is more, the insurance agreement had to be valid ten working days longer than the loan period, and the sum under insurance was actually 5% greater than the loan sum’ the antimonopoly body explains.

Sverdlovsk Region division of the Federal Antimonopoly Service declared on February 5, 2010 that Bank of Moscow’s Yekaterinburg subsidiary was guilty of an administrative offense and sentenced the organization to a 370,431-ruble fine.

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