Monday, June 18, 2018

OTP Bank charged with violating consumer rights

OTP Bank was charged on Tuesday by a Ural federal court with violating consumer rights after an investigation revealed the bank's voluntary life and health insurance package allegedly contained provisions that violate current laws.

According to the analysis, the bank's insurance package for the borrowing party allegedly had a proviso on charging the borrower for joining the program, Ural Business Consulting reports.

Additionally, under the program, customers would not receive their insurance fees back should the insurance party cancel the agreement before the end of the term, and the amount paid back to the insured would depend on the reason given by the borrowing party for the cancellation of the agreement.

The loan and insurance scheme was allegedly designed by the bank so as to keep necessary data from the consumer so that they are unable to make an informed choice on the type of insurance services and the amount of the insurance premium. It also allegedly kept the nature of the service and the bank's obligations hidden and obscure, according to Ural Business Consulting.