The NBU obliges banks and lenders to provide more information to customers: what is expected
Kyiv • UNN
The National Bank of Ukraine has amended regulations on consumer protection to require financial institutions to provide consumers with more information before and after transactions, including loan repayment procedures and details of contractual performance.
The National Bank of Ukraine has amended the rules governing consumer rights and requirements for informing them before entering into transactions with financial institutions, UNN reports citing the NBU.
Details
"The National Bank has made editorial changes to some regulatory legal acts on consumer protection and clarified the requirements for pre-contractual information to consumers and their contractual relations with financial service providers," the statement said.
Now, at the pre-contractual stage, disclosure of information about the right of customers to apply to a financial institution for a certificate of fulfillment of obligations by the parties after the completion of a financial service agreement is required. This will strengthen the protection of their rights and interests, the NBU says.
In addition, non-bank insurer lenders that provide consumer loans secured by the redemption value of a life insurance contract with a funded component must inform consumers about the loan repayment procedure. Banks are also obliged to inform consumers about the unilateral extension of the term of use of a loan under a consumer loan agreement in the form of a bank account or credit line provided by a bank.
The NBU also improved regulation in the areas of consumer protection, consumer lending, and insurance by optimizing the number of regulations. It also canceled the order of the State Commission for Regulation of Financial Services Markets of Ukraine No. 2883 dated December 3, 2004, which concerned the procedure for issuing loans to policyholders in the context of life insurance contracts.
All resolutions will come into force on March 20, 2024.
