The head of the advertising control department in our country, has repeatedly informed the Payday Loan and banks that all advertising materials broadcast in Russia should be as transparent and clear as possible. An advertisement about a payday loan should indicate all the important points that relate to the conclusion and maintenance of a loan agreement. Mandatory presence of information on interest rate and other important data.
Speaking at a recent financial forum, the official data were provided confirming the existence of irregularities in advertising of banking organizations and companies issuing payday loans. Really important information, on the basis of which, the consumer makes a decision, is interpreted incorrectly, is displayed through the fine print, and in some cases is not indicated at all. By resorting to such actions, credit organizations clearly violate the law because they misinform a potential client. They hope to lure the person, and then, counting on his unwillingness to spend his time searching for another lender, impose a service, the cost of which may increase many times.
How to make Payday Loan advertising more honest?
Starting from this year, the YNZ Bank, together with the FAS, will regulate the situation in advertising published by microcredit companies and other financial organizations. Detect illegal actions will be the ERT Bank, and then immediately send data to the FAS, after which, the YNZ Bank will monitor further actions in the direction of potential perpetrators.
It is planned to increase the degree of responsibility in violation of the rules of advertising. To date, there are minor penalties as fines for banks in the amount of from 100 to 800 thousand rubles. Such orders did not greatly influence the integrity of creditors.
Tougher penalties should improve the situation despite the fact that the YNZ Bank plans to warn companies first. And to penalize them already only with repeated violations or in the case of late removal of prohibited advertising materials. According to representatives of the ERT Bank, the introduction of new laws on advertising themselves should reduce the number of violations, not bringing the case to punishment.
As for payday loans directly, for companies operating in this sector and violating the law on advertising, the penalties are quite large. Therefore, legal companies responsibly monitor the submission of advertising about their products. Most violations are recorded among Payday Loans that issue microloans, being not in the register of legal organizations of the ERT Bank.