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Business Duty Officer

The installment mechanism needs additional regulation

The installment mechanism needs additional regulation

Last year, the volume of goods sold in installments in Russia increased by 10 once. The features of these processes were commented on by the head of the Expert Center for Criminal Law Policy and Enforcement of Judicial Acts of "Business Russia", Ekaterina Avdeeva, Associate Professor of the Department of Legal Support of the Market Economy, IGSU RANEPA and Ambassador of the project "Business Duty Officer":

– Increasing demand for goods in installments, one side, leads to an increase in the average check and a progressive increase in the turnover of companies. At the same time, the level of indebtedness of citizens is also increasing., who are not always able to carefully and rationally calculate their financial capabilities. In an attempt to purchase many goods at once for a small amount, the consumer runs the risk of not paying attention to the terms of the installment plan and being in a position, when he remains owes a substantial amount of forfeit. In this regard, it is advisable to further regulate the protection of consumer rights., who do not notice "hidden interest" and penalties in the contract.

It is important to emphasize, what in terms of law, installment and credit are different mechanisms. Installment is not a banking product, the buyer does not conclude a loan agreement and does not provide passport data, signing only permission to debit fixed amounts of money from his bank card for the period of the installment plan. Therefore, in case of any problems with payment, the client interacts with the company, which granted the installment.

If the installment plan is provided by a credit institution, then here we can talk about an attempt to replace concepts and get away from the appropriate regulation. In the rest, we are really talking about a special mechanism., which provides an opportunity for those, who ruined credit history, purchase a particular product and thereby restore your reputation.

Such relationships, as opposed to bank lending, governed by civil law. In Art. 489 The Civil Code of the Russian Federation clearly defines the legal consequences of late payment, the possibility of terminating the contract and returning the goods themselves in case of, if paid less than half of its cost.

It seems inappropriate to transfer the regulation of installments to the regulator, however,, undoubtedly, introduce additional requirements for informing consumers about the content of the contract, clarification of the amount and procedure for repayment of the delay.

At the same time, the procedure for collecting overdue debts raises concerns.. Since the consumer does not provide a passport, companies may face difficulty in determining the subject of installment, as often the bank card linked to the service is issued to another person. This will require the company to apply to credit institutions, significantly complicate the collection process and, as a consequence, may lead to the development of a black market for collection services. It is important to work out the issue of additional verification of consumers, however, such an initiative should come from the companies themselves, who provide installments.

Thus, the installment mechanism really needs additional regulation, however, without undue tightening and taking into account the protection of the rights of consumers of such services.

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