The Bank of Russia plans to start regulating the installment market at the end of 2024. The regulator is participating in the development of the corresponding draft law that should regulate this service, Izvestia reports.
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The Central Bank considers it necessary to “build protection for the user of the installment plan at the same level that the borrower who has contracted a consumer loan is currently protected.”
Lawyers are confident that the synchronization of the terms of these two services is inevitable, as well as the emergence of an installment payment agreement. Operators must also notify the credit bureau about the purchase “in parts” in order to be able to take this type into account in the debt load.
The banks are against the initiative; many of them themselves began to develop this service. Credit institutions claim that control in this way could put an end to the “installment payments” market.
The idea of regulating installment payments emerged two years ago and now the Central Bank is proposing approaches to protect consumers. Currently, users do not have complete information about the cost of services, possible overpayments and high fines for late payments. In addition, the regulator emphasizes the need to limit the growth of borrowers’ debt burden.
Author:
Karina Pardaeva
Source: RB
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