Russian banks opposed the legislative initiative to introduce a ban on increasing the limit on credit cards under an agreement with the borrower, RBC reports.
Author:
https://rb.ru/author/ntihonov/
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According to the publication, the corresponding letters were sent by the National Council of the Financial Market (NCFM) to the Central Bank, the Ministry of Finance, the Federation Council and the chairman of the Committee on the Financial Market of the State Duma, Anatoly Aksakov.
The bill was submitted to the State Duma on April 5 and on October 2 it was adopted in the first reading. The document modifies the law “On consumer credit (loan)”; establishes the prohibition of including in a consumer loan contract conditions “that provide for the possibility of increasing the loan limit without concluding a new consumer loan contract.”
The mechanism for increasing the credit limit within an agreement is used for credit cards, notes RBC. The NSFR letter states that most banks now include in the terms of their contracts with customers the possibility of increasing the limit within the established maximum value.
The explanatory note of the bill states that creditors retain the possibility of unilaterally changing the loan limit, although the legislation does not provide for this. The author of the initiative points out that “the possibility of increasing the loan limit has negative consequences for citizens, leading them into a debt trap.”
The NSFR says that “financial market participants do not support the projected change.”
The position of the banks is known to the chairman of the Committee on Financial Markets of the State Duma, Aksakov, RBC reports. The government’s response to the bill notes that its adoption will reduce citizens’ level of debt.
- According to Scoring Bureau, at the end of August 2024, Russians began using more limits available on credit cards. The proportion of the card limit used increased almost 2 percentage points, to 33.9%. This figure was the highest since the beginning of 2022.
- At the same time, the total volume of overdue debts of individuals, according to the ABK collection agency, exceeded 3 trillion rubles. Every year in Russia 4 million problem debts are added.
Author:
Nikolai Tikhonov
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
