The Central Bank of Russia reported it has uncovered cases where banks, through remote channels, offered individuals borrowing without clearly disclosing the type of agreement and the contracting party, leaving consumers unaware whether they were signing a bank loan or a microloan with a subsidiary microfinance organisation. The regulator described the practice as mis-selling that leads customers to misunderstand the product and its terms. Six credit institutions, including two systemically important banks, were identified as involved in these practices. The Central Bank of Russia demanded that the banks change their approaches to providing information to consumers within the established period.
Central Bank of Russia 2025-04-17
Central Bank of Russia requires six banks to improve remote-channel disclosures after microloans were sold as bank loans
The Central Bank of Russia identified six credit institutions, including two systemically important banks, involved in mis-selling loans through remote channels without clear disclosure of agreement types. This practice led consumers to misunderstand whether they were signing a bank loan or a microloan with a subsidiary microfinance organization. The regulator has demanded these banks amend their information disclosure practices.