The Central Bank of Russia issued guidance that banks are not required to apply the statutory antifraud cooling-off period to a car loan where the loan proceeds are transferred to an auto dealer, including where the transfer is routed through the borrower’s bank account, provided the payment process prevents the borrower from changing the payment purpose or withdrawing cash. The clarification comes ahead of the 1 September 2025 legal requirement to introduce a cooling-off period for loans and microloans to protect borrowers from fraud, under which borrowings above RUB 200,000 may be disbursed only 48 hours after the creditor and the client sign the agreement. The Bank of Russia explained that the rule is not applicable to car loans in these circumstances because they are targeted loans and, as long as funds are credited directly to the car seller’s account, the risk of fraudsters stealing the proceeds is considered minimal.
Central Bank of Russia 2025-07-25
Central Bank of Russia clarifies when the antifraud cooling-off period does not apply to car loans
The Central Bank of Russia clarified that banks are exempt from applying the statutory antifraud cooling-off period to car loans when proceeds are transferred directly to an auto dealer. This guidance precedes the 1 September 2025 requirement for a cooling-off period on loans above RUB 200,000, aimed at fraud prevention. The exemption is due to the minimal fraud risk when funds are credited directly to the seller’s account.