Also, banks will be required to provide complete information about services on official sites.
The National Bank adopted new requirements for banks to disclose information on consumer loans and advertising deposits, which would come into effect on September 1, 2020. At the same time, the requirements to disclose information about financial services on banks’ websites will also work. PaySpace magazine says what will change in the supply of information by banks.
How will the ad change
According to the new requirements, the advertisement should have the basic conditions for obtaining loan or deposit:
- For a loan, the actual annual interest rate, the maximum loan amount and its tenure must be indicated.
- For deposits – Interest rate, deposit period, currency and minimum amount.
Furthermore, advertising financial services should not disrupt the visual perception of information.
How the flow of information from bank sites will change
On their sites, banks should disclose complete, reliable and current information about the services, their total cost to the consumer, conditions for obtaining and exposure.
- For a loan, you will get the full annual interest rate, the consumer’s total expenses (not only the interest, but also the bank fees, as well as payments for related and additional services, if any), the loan body, the frequency of payment of interest and fees, Also, fines and penalties have to be disclosed. In case of late payment.
- For deposits, you need to specify the annual interest rate, deposit period, conditions for early withdrawal, payment for additional and related services of the bank and the like.
All comments and clarification needed Indicated in same font size and colorAs conditions of service. In addition, calculators must be earned at sites to calculate the cost of income from using a consumer loan or depositing funds.
Compliance by banks for the disclosure of information in advertising and on websites will be regulated by the National Bank’s Special Unit, the Office for the Protection of Consumer Rights of Financial Services. These changes have been approved in National Bank Resolution No. 62 of May 14, 2020. At the same time, the regulator extended the time for banks to adapt, noting the difficulty of meeting certain standards under quarantine.
Paypal magazine help
Earlier, the National Bank of Ukraine has already extended the time for banks to adapt to the new requirements for disclosure of information about services on websites and in advertising. Therefore, in February, the regulator postponed the date of entry of claims from March 2 to June 2, 2020.
Recall that in September 2019, the Ukrainian Parliament adopted a law according to which the National Bank gained powers to protect the rights of consumers of financial services.
Read: Law on Financial Monitoring: How to Transfer and Pay for Services Now