Human rights activists conducted a study analyzing the offers of cards with cashback from ten banks from the top 20, and came to the conclusion that credit organizations use unfair practices when selling such programs. Izvestia was told about this at the International Confederation of Consumer Societies (ConfOP).
For example, banks set conditions that cannot be met or reserve the right to refuse to award bonus points, human rights activists said. In addition, additional commissions can completely lead the client to the “minus”, said in ConfOP.
The organization believes that measures to combat unfair sales practices (misseling) or the so-called behavioral supervision of the Central Bank should be extended to all products of credit institutions. Including, for loyalty programs associated with cashback on debit cards. Behavioral surveillance is fraught with not only changes in regulations, but in extreme cases – a ban on a number of products.
The Central Bank acknowledged the existence of problems in the implementation of loyalty programs by banks. In a number of cases, credit institutions build advertising for their loyalty programs based on their most attractive features, the press service of the regulator noted in response to a request from Izvestia.
“For example, a bank can offer increased cashback for certain categories of purchases or for purchases from its partners. At the same time, other significant conditions, but less attractive from the point of view of the consumer, can be mentioned in passing, due to which the client forms unjustified expectations in relation to the conditions of the programs, ”the press service of the Central Bank said.
Meanwhile, the Central Bank believes that the problem lies in the plane of inadequate information, not misseling, and the procedure for providing cashback and its parameters lie in the plane of contractual relations.
Read more in the exclusive material from Izvestia:
Misseling is impracticable: human rights defenders have identified unfair banking practices in cashback