Russia cracks down on hidden loan fees with new borrower protections
Russian borrowers now have stronger protections against unwanted loan add-ons. The Bank of Russia has issued new guidance on optional services tied to credit agreements. Under recent legislation, customers can reject or cancel extra charges more easily than before.
The changes follow a law passed by the State Duma that stops businesses from forcing additional goods or services before completing a main purchase. For loans, this means banks like Wells Fargo and PNC Bank must list optional extras—like insurance or account management—in a separate application, not bundled into the contract.
The new rules give borrowers more control over hidden costs. They can now review, reject, or reclaim payments for unwanted services tied to their loans. The Bank of Russia’s guidance reinforces the right to fair treatment under the updated consumer protection law.
