PS3330 - The ICA imposes a EUR 1,640,000 fine on Agos Ducato for unfair practices
PRESS RELEASE
PRESS RELEASE
THE ICA IMPOSES A EUR 1,640,000 FINE ON AGOS DUCATO FOR UNFAIR PRACTICES
The ICA imposed a fine on Agos Ducato amounting to EUR 1,640,000 for misleading and aggressive commercial practices. In the Italian Competition Authority’s opinion, Agos carried out three practices that infringed the Consumer Code related to financing relationship with consumers.
In particular, the first practice concerns misleading and omissive information diffused by Agos, especially through personalised letters sent to financed customers, bearing confidential proposals promising new liquidity at improved financial conditions well below those originally subscribed by the consumers. The ICA ascertained the untruthfulness of the offers. In fact, in the vast majority of the cases, once customers contacted the Company they were offered much higher rates and instalments than what presented. Moreover, in 75% of the cases, customers experienced worse financial terms and rates, increased by average of more than 20%.
The second practice concerns Agos’s conduct aimed at hindering the early settlement of personal loans through, for example, complex procedures based on requests for documents that are not easily available for the customer, or based on the prior verification of certain conditions before providing related calculation. Further obstacles were put in place in the cases of revolving credit lines.
Lastly, the Authority also ascertained a third practice consisting in insistent payment reminders for due instalments in a manner considered aggressive by the ICA because based on numerous telephone calls (phone collection), text messages (SMS) and reminder letters (telegrams), even addressed to third parties (such as guarantors, employers and family members), and causing pressure due to the close frequency.
The case was reported to the ICA by many consumers and six consumer associations: Altroconsumo, Codici, Federconsumatori, Unione Nazionale Consumatori, Unione Tutela Consumatori, as well as Movimento Difesa del Cittadino.
Rome, 9 August 2016