Tashkent, Uzbekistan (UzDaily.com) — The Central Bank of the Republic of Uzbekistan has issued a warning to credit institutions amid an increase in cases of consumer rights violations in the financial services market.

In a letter addressed to banks, the regulator highlighted a troubling trend of imbalance in the relationship between credit organizations and their clients.

According to the Central Bank’s observations, some credit institutions have been found engaging in unfair practices that contradict the principles of fairness and transparency. These actions not only cause material harm to consumers but also undermine trust in the banking and financial system as a whole.

The document emphasizes that, in accordance with Article 9 of the Civil Code of the Republic of Uzbekistan, the exercise of civil rights must not infringe on the rights of others or legally protected interests. All participants in civil-law relations are obligated to act in good faith, reasonably, and fairly.

To protect the legitimate interests of consumers and to improve the quality and transparency of retail financial services, the Central Bank has drawn banks’ attention to the inadmissibility of unfair practices towards clients.

Among such practices are:

Including terms in credit agreements that infringe on consumer interests and disrupt the balance of rights and obligations between the parties;

Misleading consumers about their rights, including the ability to contest contract terms;

Unilaterally changing key contract conditions (interest rates, payment terms, etc.) without notifying or obtaining consent from the client;

Refusing credit without providing clear and justified reasons based on opaque creditworthiness assessment algorithms;

Providing false or misleading information, including inaccurate advertising claims;

Imposing additional products and services (insurance, SMS notifications, etc.) without informing or obtaining client consent;

Including contract terms (“covenants”) not provided for by law or requirements that are impossible to fulfill;

Advertising loans with a minimum interest rate without disclosing full information on maximum rates and their calculation method;

Offering loan amounts exceeding the requested sum to push consumers into additional debt obligations;

Charging fees for repayment during the grace (interest-free) period on credit cards contrary to transparency principles; and

Premature debiting of funds from the borrower’s or guarantor’s bank card before the scheduled payment date.

The Central Bank strongly recommended that the contents of the letter be communicated to all responsible employees involved in the development and provision of financial products and services, and that regular training be provided to front-office staff to improve their qualifications in consumer protection matters.

The regulator also announced that examples of identified unfair practices will be regularly published through the Central Bank’s official communication channels.