The Office of Competition and Consumer Protection initiated proceedings against Idea Bank in April 2017. It is concerned about the circulated information on the terms and conditions of structured deposits. These are financial products which combine capital protection with investments. They can generate profit, but also loss.
The Authority questions the manner of informing consumers on the terms and conditions of structured deposits at Idea Bank, according to which:
- The bank may fully exclude its liability for the information it provides. Consumers are the ones responsible for risk and profit assessment. Moreover, clients must obtain all of the information on the amount of taxes they will have to pay upon generating profits on their own.
- The bank provides no clear information on the agreement. Before the conclusion thereof, consumers receive “Terms and Conditions of Structured Deposits” containing information on fees, time limits, names of funds in which money is invested, etc. Although the wording of the document suggested that the terms and conditions contained therein were binding, ultimately they might be different. Furthermore, the bank highlights information on potential profits to the detriment of the data on potential losses. This may be misleading to clients.
Should the allegations be confirmed, UOKiK may order that the practice be ceased and the results thereof be removed, as well as impose a fine of up to 10% of the turnover generated in the previous year.
