More than 70% of the advertising materials of banks do not contain information on the cost of credit. Such data contains in the research of Ukrainian financial institutions in the market of consumer crediting of the USAID project “Transformation of the financial sector”, writes FinClub.
“73.6% of advertising materials do not contain any information about the cost of the loan, in 68% of cases potential borrowers are not provided with any written information,” said Deputy project Manager Julia Round.
According to the first wave of the study, which took place until 20 June 2017, part of contracts on granting the consumer credits do not include information required by current legislation, or contain terms which are inconsistent with it. For example, in 33% of cases the contracts did not contain detailed descriptions of the total value of the loans in 17% of cases – was not an even schedule of payments, 54% of contracts contain provisions that violate the right of the borrower to early repayment of the loan. “More than 50% of the contracts contain unfair terms for consumers,” says Round.