Consumer Credit Regulation in EAEU States

Abstract

Treaty on the Eurasian Economic Union of May 29, 2014 has constituted the Eurasian Economic Union. The current economic crisis, fraught with the coronavirus pandemic, clearly shows necessity for legal protection of entrepreneurs' and individuals' economic interests first of all in the field of financial services and consumer lending. The purpose of this publication is to research contemporary issues of consumer lending, comparative analysis and application of legislation (case-law) of Member States of the Eurasian Economic Union. The analysis is carried out in order to identify the level of protection of the rights and legitimate interests of individuals while concluding a consumer credit. Considering that independent states before the formation of the Union have formed their own regulatory and legal framework, including on lending issues, the legislative acts of the analyzed Member States varied significantly. Moreover, they did not adequately protect the rights of the parties to these agreements, especially individuals. Financial institutions significantly violated the rights of citizens, the conditions under contracts they concluded were of a one-sided nature, which led to numerous complaints, lawsuits in courts, as well as coverage in the media of high-profile cases related to the inability of individuals to pay off debts to financial and microfinance organizations. The Member States, having united in the Eurasian Economic Union, carried out coordinated work to improve legislation in mentioned area, as a result of which the rights of individuals — participants of a consumer credit are protected to a greater extent. However, according to the author, work in this direction, especially in the context of the economic crisis and pandemic, should be continued. The author makes proposals for improving both national legislations and the law of the Eurasian Economic Union, as well as the practice of its application. As a result of the research, the author comes to the conclusion that the EAEU should adopt a special Agreement on the credit contract and the principles of consumer lending. Therefore, it is necessary to adopt a special law on consumer lending in the EAEU Member States.