Putin Limits Cost of Consumer Loans

2013/12/21

MOSCOW, December 22 (RIA Novosti) – Russian President Vladimir Putin has signed a law declaring that the full price of a consumer loan cannot be more than a third higher than the average market rate as determined by the Central Bank.


The law, which goes into effect on July 1, also states that the borrower has a right to return the loan in full within 14 days without priorly notifying the lender.


According to the law, the borrower also has a right to be provided information for free about the terms of the loan, how to return the money, the amount of the interest rate, the services that he or she would be entitled to receive along with the loan, and how to decline such agreements or services.


Lenders must also state the full price of the loan on the first page of the agreement with the lender.



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