bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Tuesday 29.07.2014 | Name days: Vidmants, Edmunds, Edžus
LatviaLatvia

BIG Bank to pay a fine of EUR 13,000 for misleading customers

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Consumer Rights Protection Centre has imposed a EUR 13,000 large fine against BIG Bank for implementing misleading and substandard commercial practice.

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUThis decision applies to contracts signed within the December 2nd, 2008 – April 30th, 2011 time period and the contracts in which interest payments are calculated not in accordance with interest rate detailed in the contract but with a different (higher) interest rate.

The CRPC has ordered the bank to amend all active interest rate calculation methods in all active contracts that were signed before April 30th, 2011. This will reduce monthly payments for involved customers.

The bank’s implemented commercial practice applies to those customers who were not informed about their loan contracts’ approved interest rate calculation or were possibly mislead about it, because the bank did not directly provide any information about interest rates in contracts signed before April 30th, 2011. Starting with May 1st, 2011, however, the bank mentioned this information in a way that could potentially mislead customers. As a result of this practice, customers who chose to use the bank’s loan services made the decision they would have made if they had been properly informed, as reported by CRPC.

Thousands of people were affected by this commercial practice.

CRPC has ordered the bank to fix the errors in the aforementioned contracts and perform a full recalculation of loan interest rates. As a result of these measures, monthly loan repayment amounts will be reduced for customers whose loan contracts fall within the time period for contracts that are to be recalculated.

Also, every customer whose contract with the bank was signed within December 2nd, 2008 – April 30th, 2011 and customers whose contractual obligations have been cleared have the rights to turn to court.

Ref: 102.109.109.5782


Leave a reply

  1. michael walsh journalist says:

    €13,000. Bankers spend more than that on a night out. Some deterrent.

    Thumb up 0 Thumb down 0

Ukraine: Airliner downed with missile, black box data show

Data recorded by the black boxes of Malaysian airliner MH17 indicate that the plane was downed by missile shrapnel, spokesman of Ukrainian security service said on July 28.

Heat in Latvia to back away for a few days this week

The beginning of this week in Latvia is ruled by heat, with air temperature reaching +33° C at times. Intense heat is sometimes followed by thunderstorms.

Gaidis Bērziņš may replace Baiba Broka as Latvian Justice Minister

The now resigned Justice Minister of Latvia Baiba Broka will turn to the European Court for Human Rights against Latvia. She notes she was never told the reasons behind Constitution Protection Bureau’s refusal to provide her with access to official secrets.

U.S.: Russia has breached Cold War nuclear missile agreement

Russia, by performing a nuclear cruise missile test, has breached a significant arms control agreement, the U.S. government has indicated.

EU leaders agree to expand sanctions against Russia

This Monday, July 28th, ambassadors of EU countries agreed to expand sanctions against Russia, increasing the list of persons against whom sanctions will be applied, as reported by diplomats.

Unity submits list of candidates for 12th Saeima elections

This Monday, July 28th, Unity submitted its list of candidates for the 12th Saeima elections to the Central Elections Committee, as reported by CEC representative Vita Briže.

Latvian State Police leave Maxima ruins in Zolitude

This Monday, July 28th, Latvian State Police made the decision to leave the ruins of Maxima supermarket to its owner. Maxima Latvia has been given authority to perform cleanup of the territory on behalf of SIA Tineo.

Kalniete: if Ukraine loses the war, Putin’s appetite will turn towards Baltic States

The current war in Eastern Ukraine is crucial to Russian President Vladimir Putin, his intentions and the safety of Baltic States, believes Latvian MEP Sandra Kalniete.

Latvian Justice Minister resigns

This Monday, July 28th, Latvian Justice Minister Baiba Broka announced her decision to resign from her post. She plans to submit her resignation to Prime Minister Laimdota Straujuma in the nearest future.

FVS shuts down two slaughterhouses for dumping remains in woods

After an in-depth investigation, Latvian Food and Veterinary Service has decided to shut down two slaughterhouses for ‘non-compliance with requirements regarding the handling of side-products’.

International court rules in favour of Yukos, orders Russia to pay EUR 37 billion

The Hague's Permanent Court of Arbitration in the Netherlands, is expected to announce on July 28 that has ruled in favour of a group of shareholders in a claim of the defunct oil giant Yukos against Russia, awarding compensation of about EUR 37 billion.

Latvian Justice Minister remains without access to official secrets

Prosecutor General Eriks Kalnmeiers has not changed Constitution Protection Office’s decision regarding the decline to provide Latvian Justice Minister Baiba Broka access to official secrets, as confirmed by the minister’s press-secretary Inese Auniņa.

Meteorologists warn: heat in Latvia to reach +32° C

This Monday, July 28th, Riga is expected to experience intense heat, warns Latvian Environmental, Geology and Meteorology Centre.

Israel and Palestine criticise ceasefire demanded by UN

The UN Security Council on July 28 called on warring sides in Gaza to enact immediate, unconditional humanitarian ceasefire.

Krutoy: I say one word and there won’t be a New Wave

This autumn, organizer of the New Wave contest Russian composer Igor Krutoy will decide if New Wave remains in Jurmala for the future.

Fighting near MH17 crash site too heavy for investigators to work

In Ukraine's east, heavy fighting continues near the MH17 crash site, which has on July 27 prevented international investigators from visiting the site.

Economic Diary of Latvia. Single window principle for entrepreneurs

The Latvian government has made a decision to merge two state financial institutions that provide support to business and stimulate development. The new organization - Attīstības finanšu institūcijа – will be entrusted with realization of EU support programmes this year.

Air temperature in Latvia to rise to +33° C on weekends

Weather in Latvia will remain influenced by an anti-cyclone in the next couple of days. Therefore, weekends will be sunny and dry.

Lithuania may establish a nation-wide state of emergency due to African swine fever

Lithuanian authorities consider the possibility of announcing a nation-wide state of emergency because of the recent outbreak of African swine fever at one of the largest pig breeding company in the country – Idavang, said Lithuanian Agriculture Minister Virginia Baltraitiene.

Rescuers continue to find drowned persons in bodies of water in Latvia

Over the course of last couple of weeks fire fighters have been actively responding to calls about different accidents in Latvia. The State Fire and Rescue Service also continues to search for drowned people in different bodies of water.

Construction costs in Latvia up 0.7%

Compared to May, level of construction costs in Latvia in June 2014 decreased by 0.1%. Prices of building materials dropped by 0.3% and maintenance and operational costs of machinery and equipment dropped by 0.1%. Labour remuneration of workers increased by 0.3%.

Board of Pasažieru vilciens weighs options: to buy new trains or to rent them

The new Board of Pasažieru vilciens plans to decide in the nearest future whether or not it will buy new trains or rent them, notes Chairman Andris Lubāns.

Lithuania’s economy and social life diary. African swine fever endangers entire pork industry

Lithuania has made considerable efforts to ward off the threat of African swine fever (ASF), but an outbreak of the virus in a major Danish-owned pig farm puts in jeopardy the entire sector in the country.

Veshnyakov: Latvia’s representatives voice biased statements about events in Ukraine

Relations between Russia and Latvia have become more complicated in the context of Ukraine, believes Russian ambassador in Latvia Aleksandr Veshnyakov.

Latvian police continue to search for owner of garage packed with explosives

Latvian police is still searching for the man who stored a significant stash of explosive objects in a rented garage in Riga, says Chief or Criminal Police in Riga Region Andrey Sozinov.