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Совет по кодификации не поддержал законопроект о сервисах рассрочки

Russian Lawmakers Reject Bill on Installment Services

Draft Legislation on Installment Payment Market Fails to Pass Scrutiny

Bill Deemed Premature, Concerns Raised over Consumer Protection

The Russian Council for the Codification and Improvement of Legislation has rejected a draft bill on installment services, citing concerns over consumer protection and the premature nature of such legislation.

The bill, submitted to the State Duma in June 2023, aimed to regulate the rapidly growing installment payment market in Russia. However, critics argued that the bill lacked sufficient safeguards to protect consumers from predatory lending practices and could potentially exacerbate the country's financial instability.

Key concerns raised by the Council included the lack of a clear definition of an installment service, the absence of provisions on consumer rights, and the potential for abuse by unscrupulous lenders. The Council also expressed doubts about the need for separate legislation on installment services, arguing that existing consumer protection laws were adequate.

The rejection of the bill is a setback for the installment payment industry in Russia. However, it underscores the government's commitment to protecting consumers from financial risks and ensuring the stability of the financial system.

Implications for Consumers and Lenders

The Council's decision has significant implications for both consumers and lenders in the installment payment market.

For consumers, the rejection of the bill means that they will continue to have limited legal protections when using installment services. They should exercise caution when entering into installment agreements and carefully review the terms and conditions before signing up.

For lenders, the decision creates uncertainty in the regulatory landscape. They may face increased scrutiny from regulators and potential liability for violating consumer protection laws. Lenders will need to adapt their practices to ensure compliance with existing regulations and mitigate risks.

Next Steps and Outlook

The Council's decision does not preclude the possibility of future legislation on installment services. However, it is likely that any such legislation will be more cautiously drafted and will incorporate stronger consumer protections.

In the meantime, consumers and lenders should monitor developments in the regulatory landscape and seek legal advice if they have any concerns about installment services.