On October 23, 2023, changes to the Russian Law “On Consumer Credit” will come into force. Now banks of the Russian Federation will be required to indicate in advertising of consumer loans and loans the full range of values of the total cost of the loan as a percentage per annum, reports vc.ru, citing the FAS and the Central Bank of the Russian Federation.

The total cost of the loan is the sum of interest on the loan, commissions, insurance payments and other mandatory payments associated with obtaining a loan.
Information about the full cost of the loan must be indicated in the advertisement before mentioning interest rates, and the font must be no smaller than the font in which the rate is indicated. This requirement also applies to advertising with sound.

Banks must still list all loan terms that affect the payout amount if the advertisement includes at least one of those terms.

The Federal Antimonopoly Service believes that the changes will help consumers “more consciously calculate the financial burden” when obtaining a loan.