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Central Bank of Russia will tighten a responsibility for illegal consumer loans

DATE: August 29, 2016 | AUTHOR: atlawyers

Central Bank of Russia drafts amendments to Clause 14.56 of the Administrative Code of  the Russian Federation, tightening responsibility for providing consumer loans by companies that are not registered as a credit or microfinance organizations. Currently breach is punishable by fine amounting to 500 000 rubles. In case of repeated violation, the Central Bank of Russia proposes to increase the penalty up to 2 million rubles, then up to 5 million rubles. Furthermore, illegal loan companies are to be deprived of the opportunity to enforce debts from their debtors.

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