| Raiffeisen fined for breaking rules |
| Last Updated(Beijing Time):2009-10-27 07:16 |
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Bulgaria's Commission for Protection of Competition has fined the Bulgarian branch of Austria's Raiffeisen International 5.58 million leva ($4.29 million) for a misleading advertisement, the watchdog announced in a statement on Monday.
The bank had advertised free life insurance, which was offered from 2004 through 2007, to clients who took mortgages without actually maintaining the insurances, the antitrust commission said.
The commission punished Raiffeisen following a tip-off by one of its clients, who complained the bank had canceled the insurance without informing him.
The client and his wife were offered free life insurance when they took mortgage in October 2004. In 2009, after his wife died, the client informed the bank only to find out that the insurance has been unilaterally canceled by Raiffeisen, as of June 1, 2006.
According to the watchdog, the bank used the free insurance only to bait clients, hurting both the interests of clients and competitors. |
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