Real interest rates on loans
Posted on Oct 28, 2000 08:15:27 AM
Recently, the Federation Council refused to approve an amendment to the Law on Protection of Consumer Rights, which require banks to disclose full details of the conditions for issuing credit. The situation was comical: the real interest rates on loans have managed to combine in one package with the issue of genetically modified foods, as a result rejected by both.
It is not true of the Loan
According to the Central, individuals taking personal loans at 29% per annum, twice as often overpay. And with car loans at the stated rate of 13% actual payments may take up to 25%. It turns out that a person takes a loan from the bank, relying on one amount, and after signing the contract it appears that, except for the interest rate it must pay fees for opening and maintaining accounts, a penalty for early repayment or late payment, insurance and various etc. And this situation in the near future is unlikely to change, because the decree of the Central Bank, requires all financial institutions from July 1, called the effective rate – the final amount of the purchased goods on credit, is now seen by many as merely a recommendation. “We have no authority to impose uniform requirements on all types of loans,” – explained the director of the Department of Banking Supervision of the Bank of Russia Alexey Simanovsky.
Complain to the court?
How should we behave the borrower? Refuse loans? Then farewell dream of an apartment and car, and someone, and a new couch. Apply to large banks, which allegedly began to disclose the real rate? Many experts say it is nothing more than a publicity stunt and the whole truth you do not tell. President of the Association of regional banks Anatoly Aksakov invited readers to “AIF” to complain about the failure of the decree of the Central Bank of Territorial Administration and the Central Bank to court. But this way seems dubious, given that banks have already won three of the five cases against Rospotrebnadzor, who tried to protect the interests of borrowers. Only one solution – to remember a few simple rules:
1. For the stated in the advertisement rate must be attached with the charges. Before signing a loan agreement, specify their quantity and value, and then must re-read the contract carefully and check whether the information converges. If you find it hard to understand what was written in the document, take it up and show your attorney. This service costs about 300 rubles.
2. The contract must be clearly defined repayment schedule.
3. Indicate whether there are additional charges for repaying the loan in a non-cash and fines.
4. If your monthly mortgage payments exceed 40% of your income, transfer the purchase at a more favorable period.
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