Banks hidden true rates on credit cards, disclosed by Central Bank report
Bank Regulator Clarifies Credit Card Data Disclosure Violations
The Central Bank of Russia (CB) has reported instances of some bank websites inadvertently disclosing credit card data in an incorrect manner. After addressing these violations through supervisory interactions, the regulator has reminded banks of their legal obligation to disclose product terms transparently to clients under the "Consumer Credit (Loan)" law.
Violations of this law may result in regulatory action being taken. Furthermore, the CB addressed concerns regarding sudden increases in credit card interest rates, as reported by "Izvestia". The regulator clarified that banks are not breaking the law since the product terms are clearly stated in internal documents that clients review before signing contracts.
In a significant move initiated on October 23, 2023, the Federal Antimonopoly Service of Russia (FAS) mandated banks to indicate the range of interest rates in advertisements, rather than just attractive minimum rates. The new regulation demands that this information be placed before mentioning interest rates, and the font size should be at least as large as the rate itself. This rule applies to all consumer loans, including mortgages, and is intended to help consumers make informed financial decisions.
Recent legislative changes have focused primarily on anti-fraud, anti-money laundering, and money transfer regulations, not advertising disclosures. As of June 2025, no explicit amendments were found regarding the disclosure of interest rates in consumer loan advertisements, including mortgages.
Banks must comply with existing laws by clearly disclosing the effective interest rate (annual percentage rate, APR) and any additional fees or costs associated with the loan in all consumer loan and mortgage advertisements. This practice is aimed at ensuring consumers receive transparent and comparable information about credit costs as part of Russia's consumer protection provisions.
For more detailed and up-to-date information, consult the Central Bank of Russia's rules and the Federal Law on Consumer Credit (Law No. 353-FZ).
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Banks need to adhere to the existing laws by clearly disclosing the effective interest rate (annual percentage rate, APR) and any additional fees or costs associated with loans in all advertisements, as part of Russia's consumer protection provisions. The Central Bank of Russia (CB) reminds banks of their legal obligation to disclose product terms transparently to clients under the "Consumer Credit (Loan)" law, which includes personal-finance products like loans.
