FAS OPENED A CASE AGAINST “MOSCOW CREDIT BANK” PJSC

The Bank failed to duly inform consumers about full terms of using some of the bank cards [1]

The Federal Antimonopoly Service opened a case against “MOSCOW CREDIT BANK” PJSC for violating the Federal Law “On Protection of Competition” [2]. FAS exposed elements of misleading potential consumers by the Bank with regard to mandatory conditions that impact profit margins of some debit cards.

Promoting debit cards with interest accrued on the cash balance, focused attention of its web-site visitors primarily on the size of the accrued interest. The page, however, did not contain any indications that the interest is not accrued on the card balance, exceeding 300 000 RUB.

FAS analyzed the issue and concluded that the Bank action could have misled potential consumers with regard to mandatory conditions affecting profitability of some debit cards. Failure to put the relevant information on the web-site could have formed an incorrect impression about absence of restrictions in terms of the deposit, on which interest is accrued, and that only one mandatory condition should be observed: maintaining the average monthly cash balance.

Olga Sergeeva, Head of FAS Department for Control over Financial Markets, reminded: “FAS already issued a warning to the Bank in February 2020 to stop actions with elements of violations and to undertake measures in order to eliminate their consequences, which the Bank had to fulfill within ten days upon receiving. “MOSCOW CREDIT BANK”, however, failed to fully execute the warning, which constituted the grounds for FAS to open the antimonopoly case”.

Reference:

Article 14.2 of the Federal Law “On Protection of Competition” prohibits unfair competition by misleading consumers, particularly, with regard to quality and consumer properties of goods offered for sale; the purpose of such goods, means and conditions of its fabrication or application, the results expected from use of such goods, its fitness to particular purposes; quality of goods offered for sale, availability of the good on the market, possibility to achier it under certain conditions, the actual demand for the goods; source of production, the goods manufacturer, warranty obligations of the seller or manufacturer; the sales conditions, particularly the price for the goods.

[1] “Mudrost” Pension Card, “Mir Privilegii MCB ВР CLUB”, MOSKARTA (including in the “Vygodny package of carded services).

[2] Article 14.2.