The Central Bank of Russia released findings from a behavioural assessment on how borrowers engage with loan agreement terms, highlighting that many consumers do not read the terms and that the results will be used to enhance consumer lending regulation. The assessment notes that nearly half of borrowers sign loan agreements remotely via banking apps. Key reasons for not reading include lengthy documentation, having to click through a link to access terms, reliance on a bank manager, being in a hurry, and difficulty understanding legal language. The regulator also identified factors influencing how carefully consumers read agreements, which sections they see as most or least important, and obstacles to understanding critical information, including a widespread belief that documents are standard and cannot be changed even though customers have the right to amend terms.
Central Bank of Russia 2025-02-27
Central Bank of Russia publishes behavioural assessment on why borrowers do not read loan terms and conditions
The Central Bank of Russia's behavioural assessment reveals that many borrowers do not read loan agreement terms, often due to lengthy documentation and reliance on bank managers. Nearly half of borrowers sign agreements remotely via banking apps. The findings will inform enhancements to consumer lending regulation.