Starting January 1, 2024, non-bank financial institutions must disclose consumer lending terms on their websites and in advertising. This is recalled in the EP article.
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This decision was made by the National bank in October 2023. Companies were given time to adapt to the new requirements.
According to the new rules, the following essential characteristics of the service for providing a consumer loan must be disclosed on the websites of non-banking financial institutions:
- loan amount; loan terms; interest rate; other expenses related to lending; procedure for calculating the interest rate; procedure for granting a loan; loan repayment procedure; consequences of failure to fulfill loan obligations.
This information should be posted in a place accessible to consumers, on the home page of the website and in the section dedicated to consumer lending.
Non-bank financial institutions should also warn consumers about possible their consequences in the case of using a loan or the consumer’s failure to fulfill obligations under a consumer loan agreement.
In the case of posting information about lending on other websites, the financial institution must ensure the placement of hyperlinks to its own website with a full list of loan terms.
The NBU notes that such changes are aimed at increasing the transparency of lending and protecting consumer rights.