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

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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


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  1. michael walsh journalist says:

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

    Thumb up 0 Thumb down 0

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