Loan Agreements

 

On 28 June 2012 the Plenum of the Supreme Court issued Resolution No. 17 regarding disputes relating to the protection of consumer rights.

The Resolution clarifies a number of issues related to consumer protection. In particular, according to the Resolution, the assignment by banks of loan receivables due from individuals to a non-bank entity is not compatible with the Law on Protection of Consumers’ Rights. Such an assignment may be made only if this opportunity is provided for by law or the agreement (moreover, the relevant contractual term should have been agreed upon at the time of entering into the agreement).

This position of the Supreme Court differs from the position of the Supreme Commercial Court which considers that an assignment of loan receivables due from individuals by banks to a non-bank entity is not in conflict with the law – Information Letter No. 146, dated 13 September 2011.

The Resolution is mandatory for lower courts when considering similar issues.

For further information please contact Igor Ostapets or Irina Dmitrieva in the Moscow office of White & Case, tel + 7 495 787 3000 .

Share/Save