In the Russian Federation, a law comes into force limiting mortgage overpayment

AK&M 01 July 2022 19:03

From July 3, 2022, amendments to the law "On Consumer Credit (Loan)" will come into force. This is stated in the message of the Bank of Russia.

The amendments extend to mortgages the same rules for protecting the rights of borrowers, which have already proven their effectiveness in unsecured consumer lending. The UCS includes not only interest on the loan, but also any other related payments of the borrower — for example, insurance and other additional services. 

Since July 1, the temporary moratorium on the restriction of UCS on consumer loans, introduced at the end of February against the background of a sharp increase in interest rates, has ceased to operate. In the context of monetary policy easing, it was decided not to extend the moratorium.