Microfinance lenders urged to reduce penalties after service outages

The MiR self-regulatory organisation has urged microfinance lenders to offer relief to borrowers affected by disruptions to Yandex's cloud infrastructure, RIA Novosti reported on October 16, citing a letter from the organisation.

The letter says some borrowers have been unable to access their accounts to check outstanding balances or payment schedules, repay debts or submit applications.

MiR proposed reducing interest rates, lowering or cancelling late-payment penalties, or introducing a penalty-free period. It recommended documenting lenders' decisions internally and informing borrowers.

Lenders were also urged to record outage-related complaints and publish information about unavailable systems and expected restoration times. Once services are restored, they should inform customers of adjusted obligations and explain how any overpayments will be returned.

The letter separately recommends checking information submitted to credit bureaus and correcting inaccurate records.