The Central Bank fined three major banks for violations in consumer relations

The Central Bank conducted monitoring and fined a number of banks for violations in the sphere of interaction with consumers of banking services, the regulator’s data indicate.

According to the information, the Central Bank conducted work to identify and eliminate shortcomings in the activities of credit institutions that could lead to violations of consumer rights. As a result, specialists found a number of violations in the activities of TBC bank, Davr bank, and Hamkorbank.

In particular, specialists at TBC bank noted delays in removing collateral from the registry, failure to notify debtors in advance when issuing online microloans, and non-compliance with legal requirements when reviewing clients’ appeals. Additionally, incomplete information was entered on the bank’s official website, and it was revealed that the organization is not transferring the received funds for debt repayment on time.

The following violations were recorded in the work of Davr bank:

• imposing additional services when serving clients;
• incorrect calculation of daily interest on foreign currency loans;
• incomplete information on the website;
• absence of legally binding conditions in contracts;
• непредоставление полной стоимости кредита;
• online issuance of loans through a mobile application without sufficient information;
• delays in the exclusion of collateral from the register;
• violations in the consideration of clients’ appeals.

During the study of Hamkorbank’s work, specialists also found that the bank’s website contains incomplete information, the organization charges excessive commissions and fees when issuing loans, and does not comply with the laws when reviewing clients’ appeals. In addition, the bank also slowly excluded collateral from the registry.

As a result of the inspection, the regulator fined TBC bank – 615 million soums, Davr bank – 931 million soums, and Hamkorbank – 955 million soums and instructed banks to eliminate the identified violations, compensate clients for the damage caused and restore violated rights, as well as return illegally collected amounts:

• TBC bank – almost 4.2 billion soums accrued as excess interest;
• Davr bank – more than 4 billion soums;
• Hamkorbank – almost 20 billion soums of illegal payments.

Earlier, it was reported that the Central Bank of Uzbekistan had fined nine banks in a month. The regulator enhanced oversight and implemented measures against banks, microfinance institutions, and pawnshops for breaching prudential norms and rules for countering money laundering.