It will be easier for Russians to pay off overdue loans. According to the amendments to the bill on consumer credit, approved by the State Duma, it is planned to change the priority payments .
“Russia decided to improve the terms of repayment of overdue loans for citizens. It is planned to change the order in which various loan payments are written off if the borrower does not contribute enough funds, for example, less than the established monthly amount. Now the following sequence is in effect: first, the deposited money goes to repay the debt on interest and principal, then penalties to the bank, and only then interest and principal,” the message says.
“Difficulty may arise, for example, if the borrower’s income decreases. If the amount deposited is less than the required amount, then it will only be enough to pay fines and interest for using the money, and the amount of the principal debt will not be reduced. This is stated in the explanation of the amendments to the bill, which amends the law on consumer credit. The bill is now being prepared for the second reading,” the publication added.
The amendments are being prepared by the Ministry of Justice, the Ministry of Economic Development, the Ministry of Finance and the Central Bank. As noted in the press service of the Ministry of Finance, the change will increase the legal protection of citizens.