Russian Microfinance Firms to Be Banned from Pre-Checking Consent for Additional Services

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The Central Bank of Russia has approved an updated version of the basic activity standard for microfinance organizations (MFOs), significantly strengthening consumer protection measures. The new document introduces additional restrictions on practices that may mislead customers when applying for microloans and related services.

Under the new rules, MFOs are prohibited from automatically marking client consent for additional services, even if such services are offered after the loan agreement has been signed. From now on, any client consent must be expressed personally and clearly.

The updated standard also requires MFOs to disclose complete information about additional services at all stages of their provision. Customers must be informed about who provides the service, whether they can opt out of it, and how this may affect the terms of the loan.

Special attention is given to the drafting of contracts. MFOs will no longer be allowed to use visual techniques that could shift focus towards the most attractive conditions. This includes highlighting certain clauses with color, large font, or other methods while simultaneously hiding less favorable terms.

Additionally, the document aligns MFO operations with current legislation. It clarifies the deadlines and procedures for handling customer complaints, rules for informing borrowers about risks and contract terms, as well as specific norms regarding the collection of overdue debt.

The new version of the basic standard will come into effect on July 1, 2026.