CONSUMER LENDING: NEUTRALIZING ASYMMETRY

Abstract

The article deals with the actual problem of the need to neutralize possible variations of the asymmetry of credit agreements in consumer lending.

The authors of the article focus on the latest changes in Russian legislation regulating relations between commercial banks and potential borrowers in order to balance their obligations and rights.

When making a loan application for an adequate assessment of the parameters of the loan provided by the bank and, consequently, in order for the recipient of consumer credit services to make an objective decision, the proposed legislative changes allow solving the problem of false appearance of symmetry and the actual lack of equality when concluding a credit transaction.

The authors list the most common "distortions" of a consumer loan agreement in favor of the interests of a commercial bank through the presentation of certain credit conditions, which a potential consumer of bank credit products should be aware of in advance to counteract possible asymmetry. When making a loan application for an adequate assessment of the parameters of the loan provided by the bank and, consequently, in order for the recipient of consumer credit services to make an objective decision, the proposed legislative changes allow solving the problem of false appearance of symmetry and the actual lack of equality when concluding a credit transaction.

The authors list the most common "distortions" of a consumer loan agreement in favor of the interests of a commercial bank through the presentation of certain credit conditions, which a potential consumer of bank credit products should be aware of in advance to counteract possible asymmetry.

As illustrations of possible "traps", the authors consider the following examples:

- imposing additional agreements on a potential borrower;

- violation of the rights of the payer on the loan for the free use of his own current account;

- the amount of the penalty for non-fulfillment of obligations under the loan agreement;

- possibilities of using mortgage holidays;                                                              

- the full cost of the loan, in particular, mortgage.

The authors of the article pay special attention to the impact of the Bank of Russia on unscrupulous commercial banks through the use of such a tool as the maximum values of the full cost of credit in order to control the policy of credit rates of commercial banks and reduce the debt burden on users of consumer loans.

According to the authors, positive changes in banking legislation obliging commercial banks to comply with the requirements specified in the legislative framework will be able to neutralize the asymmetry of consumer credit agreements in conditions of low financial literacy of borrowers, which will increase fair competition in the consumer lending market.

The regulatory and legal methods presented by the authors to eliminate abuses in the field of lending, the possibility of correcting "skewed" loan agreements, will ultimately eliminate the illegal advantages of commercial banks in concluding credit transactions over the interests of potential consumers of banking products.