bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Ceturtdiena 02.04.2015 | Name days: Imgarde, Irmgarde
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

Ilves agrees to run for President of Latvia

Toomas Hendrik Ilves, the current President of Estonia, has on Tuesday, March 31, agreed to the offer of Latvia's ruling Unity party to run for the post of the President of Latvia.

SEB: Ukraine faces acute economic crisis and is nearly out of reserves

Baltic and Central European countries continue demonstrating good resistance toward the Russian-Ukrainian conflict, Russian sanctions on imports of food products and the growing recession.

Harmony once again criticizes Straujuma for her statement during elections

Harmony Centre has once again submitted a request to the court against Prime Minister Laimdota Straujuma and the statements she made last year on the Saeima Election Day. The party has requested to court to recover moral compensation from her.

Russian media fall for a joke article about relocation of Mistral ships to Latvia

A number of large Russian media outlets have taken seriously a joke article written by EUObserver specifically for April Fools’ Day in which France allegedly plans to supply one of the Mistral ships to Latvia.

Latvia and Estonia may unite to create a joint Russian television channel

During a meeting with the management board of Estonian EER social media channel, the management board of LTV signed an agreement that may result in joint efforts between the two countries to create a unified Russian television channel, as reported by Chairperson of LTV Ivars Belte.

Banking sector’s contribution to Latvia – low in comparison with other EU states

In 2013, the contribution of the banking sector to Latvia’s economy was 4.39% of GDP. This sector also provided residents more than 23 thousand jobs that year, according to results of an audit by KPMG Baltics.

Milk quotas scrapped in EU

In all 28 member states of the European Union, milk quotas have ended starting from Wednesday, April 1.

Repeated audit at Riga Freeport could be concluded by the end of the year

Latvian State Audit plans to complete the audit regarding the large-scale Krievu Island investment project by the end of 2015, as confirmed by State Auditor Elita Krumina.

Kasyanov: Putin’s supporters in Latvia don’t want to live in the Russia of today

Russian opposition politician Mikhail Kasyanov is certain that people who express support to Vladimir Putin’s regime in Latvia do not have any detailed knowledge about Russia’s internal policy. They would never want to live in the country that Russia is today, as reported by lsm.lv.

Co-pilot suspected of deliberately crashing down passenger plane had complained of depression

The Germanwings co-pilot suspected of deliberately crashing his plane into the Alps on March 24 had earlier complained about suffering from depression.

Flu epidemic ends in Latvia; 22 dead this season

In the last couple of weeks the number of patients that turned to Latvian medical institutions for assistance with flu infections did not exceed 100 cases per 100,000 residents in all regions involved in flu monitoring initiative. With that, it can be considered the flu season has concluded in Latvia, as reported by Latvian Disease Monitoring and Prevention Centre.

Last day to submit state official’s declaration for 2014 in Latvia

This Wednesday, April 1st, is the last day for the submission of state official’s declaration for 2014 in Latvia.

Estonian Air accuses airBaltic of unfair competition

Estonian Air accuses Latvian national airBaltic airline of unfair competition, as reported by Postimees.

Drivers to be charged entry fee when driving to Jurmala

From April 1st to September 30th, all drivers entering administrative territory of Jurmala city will have to pay a fee of EUR 2. Electric cars, on the other hand, are allowed to enter the resort city free of charge.

Lithuania: Russia is trying to make us vulnerable and reliant

Russia’s efforts to influence its neighbouring states, including Lithuania, have increased since 2014. In order to accomplish this goal, Russia employs all kinds of political, military, diplomatic, economic and other measures, said Lithuanian President Dalia Grybauskaite’s chief advisor for matters of national security Valdemars Sarapins.

Altum allocated EUR 48 million to Latvian businessmen last year

Latvian Financial Development Institution Altum had allocated a total of EUR 48.1 million as state financial support to Latvian entrepreneurs in 2014. This allowed Altum to provide support to more than 1,200 business development projects.

Latvia's VAT and labour tax revenue turn out lower than expected this year

This January and February a surplus of EUR 10.2 million formed in Latvia’s consolidated budget, which is mostly made up of the surplus of EUR 36.2 million in municipal budgets and deficit in the state budget equal to EUR 26 million.

Bondars sees his chances of becoming presidents as positive; Berzins remains quiet

Leader of Latvian Regional Alliance Martins Bondars remains the only officially proposed presidential candidate at the moment. He believes he has good chances of being elected, as reported by lsm.lv.

Strelchenok: Strīķe comes to work, but does nothing

Chief of Latvia’s Corruption Prevention and Combating Bureau Yaroslav Strelchenok is certain the former deputy chief Juta Strīķe only comes to work for show and does not carry out her duty. This is why he says he is collecting evidence of this in order to turn to the court and request her dismissal, as reported by lsm.lv.

Belevics provided with access to official secrets

Constitution Protection Bureau has decided to provide Latvian Healthcare Minister Guntis Belevics from the Union of Greens and Farmers with access to official secrets, as confirmed by Prime Minister’s press secretary Aiva Rozenberga.

Ryanair will no longer charge security fee to passengers at Riga Airport

Ryanair low-cost airline has announced that starting April 1st it will no longer charge security fees to passengers at Riga International Airport.

Saeima deputies spend nearly EUR 10,000 on a trip to Vietnam

Saeima deputies Gundars Daudze from the Union of Greens and Farmers, Sergei Mirski from Harmony, Solvita Aboltina from Unity and head of the Saeima Inter-Parliamentary Relations Office Sandra Paura have been on an official visit to Vietnam’s capital city of Hanoi since last Thursday.

Meteorologists predict snowy Easter in Latvia

This week, active cyclones will bring about cloudy and precipitation-rich weather to Latvia. On Monday, March 30th, most of Latvia’s territory will experience snowfall, including wet snow. Wind speed is also expected to rise.

Bordans: presidential elections may decide whether or not we will elect next Saeima

«We should not fear Russia’s ideological diversions and the tension they bring. We should instead focus on keeping our historic memory active,» – says the Chairperson of the New Conservative Party Janis Bordans.

Retail trade turnover up by 9.3% in Latvia

Compared to January 2015, the total retail trade turnover increased by 1.2% in February 2015, according to seasonally adjusted data at constant prices.