Federal Law "On Consumer Loans"

Federal Law 353 "On Consumer Credit" regulates relations relating to the provision of funds to citizens for purposes not related to conducting commercial activities. The provisions of the regulatory act do not apply to transactions in which the obligations of an individual are secured by a mortgage. Let us further consider the Federal Law "On Consumer Credit (Loan)" in more detail.

General characteristics of the contract

The agreement includes general and individual provisions. Elements of other agreements may be present in it, if this does not contradict the normative act in question. By the terms of the agreement on the provision of consumer credit, with the exception of the provisions agreed by the parties to the transaction in accordance with Part 9 of Art. 5 Federal Law No. 353, the rules of Art. 428 Civil Code. General provisions are established by the organization transferring funds to the individual, unilaterally for subsequent repeated use.

Informing citizens

The Law "On Consumer Loans" requires financial institutions to place information on:

1. Name of the enterprise, location of the executive, permanent body, contact details, official website on the Internet.
2. License number, in accordance with which banking operations are carried out, entering information into the state register or about membership in a self-regulatory association (depending on the type of enterprise).
3. Requirements for the applicant. They are established by the creditor and are binding.
4. Dates of consideration of the application and decision on it.
5. The list of documents required to obtain funds, including for assessing the solvency of the subject.
6. Types of loans.
7. Amounts provided and terms for their return.
8. The currency in which loans are provided.
9. Ways to provide funds, including using electronic payment instruments.
10. Interest rates. When using variable tariffs, information is provided on the procedure for their establishment.
11. Types and amounts of other payments of a citizen under the contract.
12. The ranges of the total cost of the loan established in accordance with the requirements of the Federal Law No. 353.
13. The frequency of payments when returning funds, deduction of interest or other amounts.
14. The time period during which the applicant can refuse the loan.
15. Methods of returning funds, payment of interest on debt, including a free option for repayment of obligations.
16. Means of support.
17. Responsibility of the borrower in case of improper performance of the terms of the contract, the amount of the penalty, the procedure for its calculation. It also provides information on the circumstances in which sanctions may apply.
18. On other agreements that must be concluded, or other services provided without fail when concluding a loan agreement, on the applicant's ability to agree or refuse to sign them.
19. About the probable increase in the expenses of the applicant in comparison with the expected amount in rubles, including in the case of applying a variable rate.

Other information that is significant to consumers may be provided at service locations. Information is reported to citizens free of charge. If necessary, an individual may request copies of the documentation. They are provided free of charge or for a fee, the amount of which does not exceed the cost of their manufacture.

Individual conditions

The Law "On Consumer Loans" provides for the harmonization of provisions directly between the financial institution and the applicant. Individual conditions include:

1. The specific amount provided to the citizen, or the limit of funds and the procedure for its adjustment.
2. The validity period of the contract and the term for the refund.
3. Currency in which the loan is granted.
4. The interest rate in% per annum, and in the case of using a variable tariff - the procedure for determining it in accordance with the considered normative act.
5. Information on the establishment of the foreign exchange rate if the type of cash in which the loan is granted differs from that in which the financial institution transfers the amounts to a third party indicated by the borrower.
6. The size, quantity and frequency of payments of a citizen under the contract or the procedure for determining them, as well as the rules by which they are changed in case of early repayment of debt.
7. The purposes for which the individual will spend the funds, if the corresponding condition is indicated in the contract.
8. Responsibility of the entity for improper fulfillment of obligations.
9. The possibility of a ban on the assignment of rights (claims) to third parties under the contract.
10. Consent of the applicant to the general terms of the agreement.
11. Ways to exchange information between the parties.

The Law "On Consumer Loans" allows the inclusion in individual conditions and other information relevant to the parties to the transaction.

Bans

Law 353- "On consumer credit (loan)" does not allow the inclusion of conditions in the contract:

1. On the transfer to a financial institution of the entire amount or part thereof as security for obligations.
2. On the issuance of a new loan to an individual to pay off existing debt without drawing up an appropriate contract after the date of its occurrence.
3. Establishing the obligation of a citizen to use the services of third parties in connection with the fulfillment of obligations under an agreement for a fee.

Change of conditions

The Law on Consumer Loans allows for the adjustment of individual provisions of the contract. At the same time, the financial structure that provides funds to citizens is obliged to comply with the requirements of regulatory enactments. A citizen using loan funds must report changes to his contact details or the way he contacts him. Law 353-FZ "On Consumer Credit" allows:

1. Interest rate reduction by a financial institution unilaterally.
2. Reduction or cancellation of fees for the provision of services provided for by individual terms of the agreement.
3. Reduction of the amount of interest, penalty, penalty or their cancellation (in whole or in part).
4. Change in the general conditions of the contract.

These actions can be carried out if they do not entail the emergence of new or increase existing obligations of the borrower. In this case, the financial institution must send the citizen a corresponding notice and provide him with access to information about the adopted adjustments.

Nuances

The Federal Law "On Consumer Credit" establishes that in the event that individual conditions provide for the opening of a bank account in the name of the applicant, all operations related to the fulfillment of obligations, including the issuance and crediting of funds, are free of charge. The provision on the need to conclude additional agreements or use the services of a financial company to execute or execute the main contract is included in it only if the individual has expressed his consent to this in writing. 353 The Law "On Consumer Credit" does not allow the collection of remuneration for the organization to fulfill the obligations established by regulatory enactments, as well as the provision of services that are provided in its interests, and as a result of which a separate property benefit is not created for the debtor.

Repayment order

The Law "On Consumer Credit (Loan)" determines that in case of insufficient amount contributed by the debtor, obligations are closed in the following order:

1. Unpaid interest.
2. Debt on the principal amount.
3. Fine, penalty or penalty. Its value is determined by the rules of Art. 21 Federal Law No. 353.
4. Interest accrued for the current period.
5. The amount of the principal debt at the date of the next payment.
6. Other deductions established in regulatory enactments or the contract.

Forfeit

The RF Law "On Consumer Credit" establishes a rule in accordance with which it is calculated. In accordance with the provisions of the regulatory act, the amount of the penalty cannot be more than 20% per annum. This amount is provided if interest is accrued under the agreement on the principal amount of the debt for the period in which the repayment period has been violated. If% is not provided for by agreement, then the penalty amount is 0.1% of the delay. It is charged for each day of non-payment.

Loan cost

When calculating it, the following payments are taken into account:

1. On repayment of the main debt under the contract.
2. Interest payment.
3. In favor of a financial institution, if such an obligation is provided for in the agreement or if the provision of funds is made dependent on such payments.
4. For the issue and subsequent maintenance of electronic means of payment during the execution and execution of the contract.
5. In favor of third parties, if this follows from the agreement in which these persons are defined, or if the provision of a loan is made dependent on the conclusion of an agreement with them.

Tariffs

The Law "On Consumer Credit" stipulates that if a third party is defined in the contract, the special rates applied by this entity are used in calculating the full cost. Rates may not take into account the features of the debtor himself. If the creditor does not take them into account, the applicant must be notified of this. In some cases, payments to third parties in the calculation of value cannot be determined uniquely for the entire period of the contract. In such situations, the tariffs set on the day the calculations are made apply. If several third parties are indicated in the contract, the rates of any of them may be used. In this case, information should be indicated on the person whose tariffs are applied in the calculation.

Clearance transaction

The Law "On Consumer Credit" establishes a number of requirements for concluding a contract. If upon provision of funds the citizen is offered additional conditions for a fee, including health / life insurance, a statement must be drawn up containing a clause in which the individual gives his consent. At the same time, their cost is indicated in the document. Consideration of a citizen's application is free of charge. If the document has been drawn up, however, a decision on the provision of funds cannot be made without the presence of an individual, the latter is provided with an act that contains information about the date it was accepted for consideration. A financial company has the right to refuse an applicant without giving reasons, unless the federal laws establish an obligation to send a reasoned response to an entity. At the same time, information about the decision is provided to the credit bureau. The contract will be considered signed if the parties have come to an absolute agreement on all its individual provisions. The validity of the agreement starts from the moment the funds are provided to the applicant.

Additionally

The borrower may inform the credit institution of its consent to receive funds under the conditions established in the contract within five days from the moment of familiarization with them, unless otherwise specified by the financial structure. She, in turn, cannot change the provisions of the agreement within 5 days from the moment they are received by the citizen. If the financial structure received an agreement signed by the borrower after a five-day period, it will be considered non-concluded.

Conclusion

If the borrower violates the obligation for the intended use of funds established in the contract, the lender may refuse to continue servicing the client. He also has the right to demand early repayment of debt. The documentation required to conclude a contract, as well as an application for the provision of funds, can be signed by the parties to the transaction using an analogue of the signature in a way that confirms its ownership by the parties, in accordance with applicable laws and regulations, and sent through information and communication channels.