Failure to return credits may be punished by forced labor
18 February 2008Russia has worked out the bill according to which persistent non-payers of consumer credits can be punished by forced labor for the term from 180 till 240 hours. Other punishment will be the penalty 100 thousand rubles or the sum of the revenue.
The bill, besides suggestions to toughen punishments for defaulters, contains regulations about introduction of prison terms for the swindlers who illegally get credits –they can be imprisoned for the term from one to two years.
The bill will protect not only rights of banks, but also rights of borrowers. In particular, they will be allowed to repay credits ahead of schedule, and banks will be obliged to specify in the contract cost of the credit and the schedule of repayment.
Now defaulters of consumer credits in Russia are threatened with the penalty as the income of two-five months.
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