Experts explain how citizens can protect their financial rights when signing contracts.
Consumers are increasingly reporting instances where banks automatically add insurance to credit card agreements, with monthly charges potentially reaching 10,000 rubles. This trend is evident from customer feedback on financial platforms, where many discover these unsolicited insurance policies only after deductions appear on their statements. This raises questions about the legality of such practices and how individuals can safeguard themselves from unwanted services.
Major banks are increasingly bundling insurance with credit card issuance, often doing so without explicit customer consent. Consumers report not receiving proper disclosure about these additional services, leading to surprise deductions from their accounts. For example, customers of Russia`s largest commercial bank have reported monthly charges of 1,700 rubles for insurance they were unaware of.
Another top-50 commercial bank, identifiable by a purple letter in its logo, reportedly added three insurance policies totaling approximately 10,000 rubles per month to some clients` accounts. Similarly, a leading bank in the gas industry continued to charge for «card protection» even when customers explicitly declined it during the application process. Some users even found insurance automatically linked to their credit cards issued alongside salary cards, with no separate notification or visibility in their online banking portal. One customer of Russia`s largest bank noted an automatic 199-ruble monthly insurance charge on their credit card, which could only be canceled by visiting a physical branch. Instances of «stealth» insurance activation on existing cards are also recorded, where customers only become aware of the service after initial charges appear, without understanding their origin.
This trend coincides with a significant decline in new credit card issuance, which halved to 1.07 million in the first half of the year. Elman Mekhtiev, CEO of the Association for Financial Literacy Development, suggests that «reduced profits are pushing creditors to compete for commission income, thereby promoting additional services.» Legally, all paid supplementary services, including insurance, require explicit, informed, and documented customer consent, as stipulated by Article 16 of the Law «On Consumer Protection» and clarified by the Bank of Russia.
However, in practice, banks often hide consent within a general checkbox in the contract or online banking offer, failing to highlight that the client is specifically agreeing to paid insurance rather than just standard card terms, notes investment advisor Yulia Kuznetsova. If a client did not consent to insurance during credit card application, or if consent was obtained through improper disclosure, there are grounds to dispute the charges.
Dmitry Yanin, Chairman of the Board of the International Confederation of Consumer Societies (KonfOP), asserts that «insurance linked to loans is largely useless for consumers.» He explains that payouts from compulsory life and health insurance policies for borrowers rarely exceed a few percent of the collected premiums, meaning «almost nothing goes back to the people.» Such insurance essentially acts as an additional loan fee, providing no real value to consumers. Yanin warns that disputing these charges is complicated, as the borrower bears the burden of proving that the service was imposed on them.
According to Evgenia Lazareva, head of the «For Borrower Rights» project of the People`s Front, amendments to Federal Law 353 «On Consumer Credit (Loan)» have been in effect for over a year. These amendments require creditors to inform clients about additional services and products, including those tied to credit cards, and to document these add-ons separately. The law also mandates that banks provide clients with the option to decline these extra products or agree to purchase them for an additional fee.
To avoid falling victim to these banking tactics, Mekhtiev advises several steps: First, carefully read the entire contract, as borrowers often rush through documents to secure funds quickly. Second, do not hesitate to ask direct questions: «Is insurance included? What is its cost? Can I opt out?» When applying online, always uncheck any pre-selected options for additional services, including insurance.
If additional services or insurance have already been activated, clients should submit a cancellation request, utilizing the «cooling-off period.» This period allows for the termination of an insurance contract within 30 days of the financial product`s issuance without providing a reason.
Filing complaints with the bank itself, as well as with the Central Bank of Russia and Rospotrebnadzor (the consumer protection agency), is also advisable. Kuznetsova states that banks typically issue refunds in 70-80% of cases, especially when the complaint is supported by evidence demonstrating a lack of informed consent.
