bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Ceturtdiena 05.05.2016 | Name days: Ģederts, Ģirts
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

Estonia and Lithuania do not support EC’s proposed fine policy for refusal to resettle migrants

Estonia does not agree with the European Commission’s recent proposal to establish a fine policy for member states: EUR 250,000 for every asylum seeker denied resettlement in EU member states, as announced by Estonian Internal Affairs Minister Hanno Pevkur.

Russia views building new divisions along western and southern borders

Moscow has on May 4 stated that if NATO will carry out plans to increase military presence in Baltic States and Poland, Russia would react by adding three new divisions to its western and southern military forces.

Ports council to view a report on the situation in Latvia’s transit and logistics industry

On Thursday, 5 May, the Latvian Ports, Transit and Logistics Council will discuss matters related to the situation in Latvia’s ports, transit and logistics sector, topical problems in the industry and solution proposals.

In U.S. Republican Party, Trump’s last opponent suspends campaign

In the U.S. Republican party, the last opponent of controversial businessman-politician Donald Trump has left the competition for the candidacy for the party’s presidential election nomination.

Amendments to Education Law and other decisions viewed by the Saeima this week

On Thursday, 5 May, the Saeima will view amendments to the Law on State Administration. These amendments are meant to establish a unified order for state and municipal service provision. Amendments are meant to provide a condition that services to residents would have to be provided in a single customer service centre.

Brussels proposes fines to member states refusing to accept asylum seekers

EU’s European Commission has this week suggested amending the bloc’s existing asylum rules, among other changes proposing high fines to member states refusing to accept asylum seekers.

Kaimins’ party expected to have more members than necessary minimum

More people than necessary minimum are expected to take part in the forming of the party of non-party Saeima deputy Artuss Kaimins.

Eurozone’s economic growth outlook is reduced

On Tuesday, 3 May, the European Commission cut down Eurozone’s economic growth outlook for the year, warning about global risks. Among those risks are the slowing of China’s economic growth and UK’s possible exit from the European Union.

Vejonis: indexes of Latvia’s economic development are not satisfactory

«Indexes of Latvia’s economic development have not been satisfactory in the first quarter of 2016. If this continues, it will be very difficult for the country to come close to the average development level in the European Union. In order to make it possible to divert more money to priority sectors, especially to the healthcare sector, it is necessary to increase state budget revenue...

NATO considers stationing 4,000 troops in Baltic States and Poland

NATO considers the possibility of stationing around 4,000 troops in Baltic States and Poland on a rotation basis, as announced by US Defence Secretary Ashton Carter.

Gauss: airBaltic has become the largest airline in Estonia

The Latvian airline airBaltic has become the largest airline in Estonia. In April, airBaltic achieved +64% growth, and serviced 28 474 passengers travelling to and from Estonia.

Estonia denies entry to three Russian journalists

The Schengen visas of three Russian TV journalists have been revoked and they have been denied entry in Estonia on May 2, Estonian public broadcaster reports.

Swedbank to provide LDz with a EUR 31 million loan to assist with train modernization

Swedbank has signed a contract with Latvijas dzelzceļš in regards to the allocation of two long-term loans with a term of fifteen years for a total amount of EUR 32.26 million to assist the financing of LDz planned train modernization project.

Spanish parliament to be dismissed being unable to form government in four months

Politicians, who were elected to the Spanish parliament on December 20, have missed the date for forming a government therefore the country will hold snap parliamentary election on June 26.

Baltic Taxi has created a system to avoid paying VAT to the country

Baltic Taxi uses a micro enterprise-based scheme that circumvents the payment of the Value Added Tax. In addition, this system does not provide any social guarantees to the company’s drivers. When asked about paying taxes, Panda taxi brand dealers become uncharacteristically non-talkative.

Bitcoin entrepreneurs sceptical on crypto-currency inventor’s coming forward

Australian businessman Craig Wright has this week stated that he is the long-searched-for inventor of the digital currency, who has for years used the pseudonym Satoshi Nakamoto.

Today is the day of founding for Artuss Kaimins’ new political party

On Tuesday, 3 May, non-party deputy Artuss Kaimins will be holding the founding meeting of hi new party – KPV – at the Large Guild, Riga.

airBaltic concludes its share capital increase

On Monday, 2 May, the Shareholder Meeting of airBaltic decided the share capital increase of the Company by 131 152 036 shares with the nominal value of each share being EUR 1. The newly approved share capital of airBaltic will now constitute EUR 256,472,824, composed of 256,472,824 shares. The share capital increase procedure is thus completed.

EC to recommend visa-free travel with Turkey, despite undemocratic processes

The European Commission is to give its conditional recommendation for Turkey-Schengen area visa-free travel, even though Ankara increasingly targets on its opponents in a manner more autocratic than democratic.

RSU scientists have created a new heart valve prosthesis

Latvian scientists have managed to isolate the perfect material for the manufacture of heart valve prostheses. This new and unique material gradually merges with the human organism’s cells, which accept the artificial prosthesis over time. This result was achieved in research supervised by Riga Stradins University.

Tallinn airport starts repair and construction works

Tallinn airport in Estonia has on May 1 started repair and construction works that for the most part will be conducted at night not to affect operation of the airport.

SP: Russian businessmen continued to invest in Latvia’s transit industry last year

The country’s economic security interests may be negatively influenced by the fact that there are companies among cooperation partners of Latvian ports whose owners are close to the Russian political elite. This creates the risk that if the Russian elite make the decision to divert cargoes to other ports, loyal businessmen will likely follow this directive, Security Police predict.

Food Union once again reduces milk procurement prices due to the milk crisis

In relation to the continuing crisis in the dairy industry, reduced production prices and overproduction of fresh milk in Latvia, Food Union has decided to reduce prices on dairy products.

SA: the time has come to decide on ending privatization

Latvia has a long privatization history. Even in 2003 the government was aware that the goal of privatization had already been reached. With that, officials had suggested ending the process back then.

Study: Half of largest investors do «nothing to mitigate climate risk»

A study evaluating investments of world's 500 biggest pension funds, insurers, sovereign wealth funds, foundations and endowments – managing a total of 33 trillion euros -, has learnt that nearly a half are doing nothing to reduce climate change.