Costly consultations and hypothetical discounts: review of unfair practices in car lending
Banks and car dealers often try to persuade their customers to buy additional overpriced services. Moreover, they prepare contracts in such a way that customers are unable to reject the services and get their money back. This violates the rights and interests of consumers.
Specifically, customers are offered costly insurance consulting services, although such consultations are usually provided for free, or a discount on a car, but only if the customer buys the car on credit or purchases additional paid services. In addition, there are known cases when borrowers have been deliberately poorly informed about the terms of the deal. As a result, customers bear additional costs for purchasing unnecessary goods or services and may not be fully protected by the current legislation.
The Bank of Russia has warned lenders against using the practices specified in the review of practices. Also, the regulator has prepared tips for consumers how to avoid falling victim to unscrupulous lenders or sellers and where to complain if they do.