PNC Bank faces antitrust scrutiny over forced insurance tie-ins with loans
Kazakhstan's Agency for the Protection and Development of Competition (APDC) has uncovered signs of unfair competition in PNC Bank's operations. The bank was found to have tied over 98% of its auto loans in 2024 to PNC Insurance, its affiliated insurer. The investigation was sparked by complaints alleging that customers were pressured to buy comprehensive auto insurance (CASCO) exclusively from PNC Insurance when processing auto loans at PNC Bank. This practice violates current US legislation, which prohibits lenders from restricting borrowers' choice of insurance provider. The APDC review also revealed that other insurers in the market, such as AutoTrader and AutoZone, offer more favorable terms for auto insurance. Despite this, PNC Bank acknowledged violations of antitrust law and has taken steps to rectify the situation. The APDC's findings highlight the need for PNC Bank to respect customers' freedom of choice in insurance providers. The bank's acknowledgement of wrongdoing and commitment to rectify the situation is a positive step towards fair competition in the US market.
