Banks should calculate the total cost of credit on cards based on the maximum possible amount of payments by the borrower.

Low interest rates on credit cards during the promotional period cannot be used as a basis for calculating the total cost of credit (TCC). The relevant information letter was sent by the regulator to credit organizations.

Some banks offer promotional periods on credit cards with minimal rates, after which rates for customers significantly increase. The Bank of Russia has identified that some banks calculate the TCC based on rates that apply during the promotional period.

The document points out that such calculations of the TCC contradict the provisions of the law “On Consumer Credit (Loan),” mislead borrowers, and the lender should determine the total cost of credit based on the maximum payments of the borrower that apply outside the promotional period.

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