TITLE: Russia Reduces Maximum Overpayment Threshold for Short-Term Consumer Loans
BODY:
On March 26, 2026, Russia announced changes to consumer lending regulations that will take effect from April 1, 2026. Under Part 24 of Article 5 of the Law on Consumer Credit, the maximum overpayment threshold for short-term consumer loans and advances (with terms up to one year) will be reduced.
The threshold represents the point at which lenders must cease charging interest, penalties, fines, or fees for additional services. Previously set at 130 percent of the loan amount, this threshold will decrease to 100 percent of the loan amount from April 1, 2026. This means lenders can only charge fees and interest up to the point where total payments equal the original loan principal, providing increased consumer protection against excessive charges on short-term borrowing.
The change was introduced through Federal Law No. 545-ФЗ, dated December 29, 2025, and amends the existing consumer credit framework established under Federal Law No. 353-ФЗ of December 21, 2013. The reduction applies to all short-term consumer credit agreements and advances with original terms not exceeding one year. This adjustment aims to limit consumer debt accumulation and protect borrowers from escalating costs on short-term credit products.
The new threshold becomes effective April 1, 2026, and applies to all short-term consumer lending agreements entered into or renewed on or after this date.