The State Duma adopted a law on informing the borrower when concluding a loan agreement

In the third reading, State Duma deputies adopted a law on the introduction of a mechanism for informing the borrower when concluding a consumer loan agreement. The decision was made at a meeting on July 21.

The draft law establishes the obligation for credit and microfinance organizations to inform the borrower about the fact of concluding a consumer loan agreement with him and about the terms of the document. And also about the possibility to cancel the loan during the "cooling-off period" through the portal of Public Services.

The notification will be sent immediately to the borrower's personal account on the resource, no later than 15 minutes after the acceptance of all information from the lender by a qualified credit bureau. The lender is also required to inform the borrower about the signing of individual terms, the interest rate, the loan amount or loan limit, and the repayment period.

"We are striking at the most painful point of financial fraud — making loans to citizens without their knowledge. Previously, a person found out that he was in debt only when collectors or bailiffs came. Now the mechanism will work ahead of schedule," said State Duma deputy, Deputy Chairman of the Budget and Taxes Committee Kaplan Panes (LDPR faction).

Thus, within 15 minutes after the bank or the MFI completes the transaction, the borrower will receive a notification on the Public Services portal. If a person has not taken out a loan, they will have time to react, including the framework of the "cooling-off period". It is important that information will be free for citizens, and the entire technical chain — the lender, the credit bureau, the Gosuslugi portal — is integrated into a single system. Thus, such a legal mechanism will prevent fraudulent activities.

"The law was developed in accordance with the instructions of the President [of the Russian Federation Vladimir Putin] and is a logical continuation of the system of self-restrictions on loans. The Liberal Democratic Party consistently supports measures to protect citizens' savings and credit history from criminal attacks," Panes stressed.

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The fact that the deputies intend to consider a bill providing for mandatory informing of citizens when applying for loans and loans in their name, was announced yesterday by the Chairman of the State Duma Vyacheslav Volodin. He added that such an initiative is aimed at strengthening the protection of citizens from the actions of fraudsters.

On July 7, the State Duma approved a law that establishes the obligation of credit institutions to disclose information about the terms of service, including their changes when making transfers through the fast payment service of the Bank of Russia payment system, as well as when providing, using and accepting electronic means of payment.