Banking service modifications spark criticism from the State Duma, citing concerns over newly introduced terms and conditions.
Now, hear this: Banks in Russia have been known to levy hidden charges for cash withdrawals, burden consumers with steep service fees, and jack up interest rates on loans without providing advance notice. Vyacheslav Volodin, the speaker of the State Duma, has pointed out that these practices force the Russian public to resort to the court system to contest these decisions, resulting in unnecessary financial strain.
Volodin stated that banks are forbidden from unilaterally altering contract terms without notification, and must divulge all loan conditions, caution of potential risks, and communicate any loan applications to the citizens. He also mentioned that the State Duma is in the process of examining the enforcement practices of previously enacted legislative regulations.
While Russian banks typically require thorough identification documents for account creation, including non-residents, there seems to be a lack of explicit legislation regulating or prohibiting banks from imposing hidden fees on services for Russian inhabitants.
In recent weeks, clients of Russian banks have reported issues with hidden connections to paid services and notifications, as reported by Izvestia, citing reviews by citizens on the "Banki.ru" people's rating of banks. Allegedly, banks charge commission for notifications without the customers' consent and dodge responsibility, citing missed SMS or push notifications about new services. Elvira Nabiullina, the Chairman of the Central Bank of Russia, had pledged to monitor banks' attempts to impose unnecessary services on Russian residents in November 2024.
Have a look at our Telegram channel @expert_mag
- #StateDuma
- #complaints
- #HiddenFees
Despite international sanctions imposed by the European Union and allied countries that have hampered Russian banks' international operations, these primarily target asset freezes, financial transaction bans, and messaging restrictions, rather than regulating domestic bank fees. Enforcement of sanctions by the EU on Russian banks faces inconsistencies, with implementation delays within EU member states. On the Russian side, sanctions have exacerbated trade credits, payment difficulties, and financial instability within the Russian banking system. However, the domestic regulation of bank fees in Russia remains less transparent and effectively enforced.
- Vyacheslav Volodin, the speaker of the State Duma, has urged Russian banks to disclose all loan conditions and potential risks to consumers, and to communicate any changes in contract terms with proper notification.
- The State Duma is reviewing the enforcement practices of previously enacted legislative regulations, as concerns regarding hidden fees in Russian banks' services continue to persist, with the Central Bank of Russia pledging to monitor the issue in November 2024.
