Banks to disclose all cashback terms: recommendations from Bank of Russia and FAS
Banks are to disclose both attractive terms and limits under cashback programmes in a comparable format not to create inflated expectations among customers. People should have free and easy access to the documents providing exhaustive information on cashback terms.
These recommendations have been sent to credit institutions by the Federal Antimonopoly Service of the Russian Federation (FAS) and the Bank of Russia.
Currently, banks often focus potential clients’ attention on the cashback percentage, but do not always notify them of the limits, such as the maximum cashback for a certain period, the highest and lowest purchase amounts to get a cashback, or the types of purchases for getting a cashback.
Such practice can be deemed to be unfair, and misleading of customers can be considered as a violation of the laws on protection of competition and advertising, according to the letter sent by the FAS and the Bank of Russia.