Cases when antifraud cooling-off rule for car loans is not mandatory
Banks are not obliged to introduce an antifraud cooling-off period for a car loan if the money is to be transferred to an auto dealer, including through a borrower’s bank account. In this case, the settlements must be arranged so as to prevent the client from changing the purpose of the payment or withdrawing cash. This is the explanation given by the Bank of Russia.
From 1 September 2025, a cooling-off period for loans and microloans is required by law in order to protect borrowers against fraud. Borrowings exceeding ₽200,000 may only be provided 48 hours after a creditor and a client sign the agreement.
Nevertheless, this rule is not applicable to car loans because such a loan is targeted, which implies that the borrower has already made an informed decision and the risk of the borrowings being stolen by fraudsters is minimal as long as the funds are to be credited directly to the car seller’s account.