Luminor Bank AB fined for consumer credit advertising breach
The Board of the Bank of Lithuania has imposed a €150,220 fine on Luminor Bank AB for non-compliance with legislative requirements for consumer credit advertising.
The Bank of Lithuania has found that for almost three weeks online, ATM and outdoor advertisements on consumer credit agreements commissioned by Luminor Bank AB have been in breach of the set legal requirements. The obligatory representative example, which includes standard information on consumer credit, was not presented in a prominent way: its font size was up to 30 times smaller compared to the interest rate (from 9%) or the charge on consumer credit agreement (€0) indicated in the advertisement.
According to the set requirements, the representative example included in the consumer credit advertisement must be more prominent than the information that triggered the inclusion of the example; its text cannot be presented in a smaller or illegible font in relation to other information on consumer credit costs. In cases where several figures relating to the cost of consumer credit are in different font sizes, the font size of the representative example should not be smaller than any of the figures presented in the largest font.
In light of all relevant and attenuating circumstances, Luminor Bank AB has received a fine of 0.1% of its total annual income for 2017.
In 2012 the Bank of Lithuania approved its Guidelines on Financial Services Advertising, which provide a detailed explanation of legislative requirements for financial services advertising, highlighting key aspects regarding its preparation and distribution.