LETTER OF CENTRAL BANK OF THE RUSSIAN FEDERATION

of September 17, 2013 No. 183-T

About the offer credit institutions of settlement (debit) cards with the overdraft and credit cards to clients

The Bank of Russia notes active growth of the offer by credit institutions to clients of settlement (debit) cards which transactions with use can be performed for the credit account, provided by credit institution (further - debit card with the overdraft), and credit cards - for the I half-year 2013 the surplus of number of the specified cards constituted 28 and 41% respectively, at the same time for the same period of last year the surplus constituted 12 and 24% respectively.

With respect thereto the Bank of Russia recommends to credit institutions - debit card issuers with the overdraft and credit cards in case of disclosure of information on terms of credit according to requirements of the Federal Law "About Banks and Banking Activity" and the Law of the Russian Federation "About consumer protection" separately and by method, available to clients, to open procedure for loan repayment, including information, stipulated in Item 4 letters of the Bank of Russia of November 22, 2010 No. 154-T "About recommendations about disclosure of information on the main conditions of use of bank card and of procedure for settlement of the conflict situations connected with its use", and also other information (the structure of information is given in appendix), based on which clients can make the weighed decisions on need of obtaining (use) of debit cards with the overdraft and credit cards. Methods of bringing to clients of the specified information (SMS informing, placement on the official site of credit institution on the Internet, at the stands located at offices of credit institution, etc.), explanations of special terminology shall provide respectively availability, clearness of information to the clients who do not have special knowledge.

Bring this letter to the attention of credit institutions.

This letter is subject to publication in "the Bulletin of the Bank of Russia".

Appendix

to the Letter of the Bank of Russia of September 17, 2013 No. 183-T

Structure of the additional information recommended for disclosure by credit institutions - issuers in case of the offer to clients of debit cards with the overdraft and credit cards

1) Information that the agreement signed by the client contains elements as agreements providing making of transactions with use of bank cards, and the credit agreement.

2) Information on procedure for loan granting in cases when the credit card is offered to the client without personal visit of credit institution.

3) Information on procedure for change of conditions of loan granting, including change of the size of credit limit and the size of the corresponding commission fees, according to requirements of the Federal Law "About Banks and Banking Activity".

4) Information on procedure for collection of the commissions established by credit institution - the issuer, connected with obtaining and use of debit card with the overdraft or credit card, including during the grace period on credit cards, and also specifying on whether the commissions will keep from the amount of the granted loan.

5) Information on situations in case of which it is possible to use suspension of the right of the client debit card with the overdraft or credit card, including in case of non-execution by the client of obligations on repayment of the loan, and also about procedure for the prior notice of the client of suspension of the specified right.

6) Information on responsibility of the client in case of non-execution (improper execution) of obligations on repayment of the loan provided when implementing transactions with use of debit card with the overdraft or credit card including about the sizes (method of their determination) of the cash amounts levied by credit institution from the client depending on the size and (or) the term of non-execution (improper execution) of obligations.

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