All-in in Hungarian
In a crisis situation, conscientious and reputable banks, as a rule, try to behave as friendly and, most importantly, decently towards their customers. This could be observed both during the coronavirus pandemic and after the start of a special military operation. Frightened by what is happening, customers – and not only individuals, but also enterprises and organizations – can panic and make unreasonable and irrational operations. In such a situation, the task of conscientious bankers is to warn customers against erroneous actions, to offer them profitable products and service conditions that correspond to the current moment.
However, it is not uncommon for credit institutions, on the contrary, to try to use the political or economic situation in the country for their own personal interests, embarking on the path, if not fraud, then slyness bordering on it. Usually such things are practiced by third-tier banks. And it is all the more surprising that such a practice was reported by the media in relation to OTP Bank, which is included in the TOP-50 banks of Russia.
“OTP Bank” – a credit institution with Hungarian roots, “daughter” OTP Bank Group, which about a year ago announced its intention, following the example of other European countries, to curtail its business in Russia. In the meantime, this did not happen, the Russian management of the bank, as the media write, set off, what is called “breakaway” in an effort to get as much income as possible in the remaining time. What will happen to customers tomorrow, and whether these customers will be at all, the leaders of OTP Bank, it seems, are not too worried.
As Khmyr from the cult film “Gentlemen of Fortune” put it, this is not a very noble occupation – “to rub change in your pockets.” Meanwhile, the Internet is inundated with complaints from private clients about OTP Bank: someone was charged a commission of 10,000 rubles allegedly for opening a foreign currency account (and in fact they handed over an unnecessary certificate for legal services), someone is forced to service a loan for a product that the buyer even did not receive in the store, someone is being misled with cashback and interest on the balance. As stated, in particular, in a home appliances store, representatives of OTP Bank imposed two insurances of 30,000 rubles on a TV loan on a client at once. And a loan for a TV set worth 120,000 rubles with all commissions and insurances grew to 200,000 rubles. And the credit rate specified in the contract is 90% per annum!
If you believe these reports, OTP Bank, against the background of the impending exodus from Russia, as they say, is not shy and does not deny itself anything. As a result, many lawsuits have been filed against the bank. Moreover, not only from private clients, but also from large companies and even government agencies.
“OTP Bank” managed to get a significant part of the market of bank guarantees in the field of public procurement, after which the journalists reported that the financiers began to evade the fulfillment of their obligations under various pretexts. Among those who today bring legal claims against OTP Bank are the Capital Repair Fund of Moscow and other customers whose losses amount to hundreds of millions.
Unfortunately, the judicial system is not as quick as we would like, and before considering the claims on the merits, OTP Bank may well have time to leave the Russian market. If the recovery of astronomical amounts from the bank leads to its bankruptcy, that this can also leave customers with a broken trough.
The Hungarian owners of the bank do not seem to be bothered by this. Hungary itself takes noticeably friendlier positions towards Russia than other European countries, at least for the time being. At OTP Group Bank there is business not only in Russia, but also in Ukraine, which declared the Hungarian bankers “sponsors of terrorism.” In response, Hungary blocks anti-Russian sanctions and the allocation of funds to supply Ukraine with weapons. If Ukraine changes its mind, then Hungary can withdraw its kind of veto, and then nothing will prevent OTP Bank from directing the income earned in Russia, for example, to support Ukrainian military projects.
This, of course, is of considerable importance for the Russian clients of OTP Bank, but they are no less worried about their money. The chairman of the Central Bank, Elvira Nabiullina, said that “we would not want to run around the market with a club, which we, of course, have. Therefore, I hope for the prudence of the bankers.” The question of such prudence, I think, is very relevant for the managers of OTP Bank.
Back in 2021, the Central Bank had the right to suspend sales and demand that the bank buy back the product, Nabiullina recalled. The regulator can apply such a measure if, when selling, a financial institution withholds important information about restrictions and risks from consumers, misleads customers about possible income and guarantees, and also issues one financial product after another, more reliable. Given the difficult situation in the sector, a year ago the Central Bank did not use such a right yet, Nabiullina said, but it will definitely start using it this year if practices are not hzikhidtidekrt stop.