Russian Man Turns Tables on Bank, Changes Small Print in Credit Card Agreement, Then Sues, Now Settles

Minyanville.com > Business News > Editor's Pick

By Nick Shchetko Aug 14, 2013 4:50 pm

In a new development, the bank and its famous customer have come to an agreement. 

Editor's note: This story has been updated. Please see our final update at the bottom of this previously reported story. 
 

In Soviet Russia, banks pay customers' bills. Or, at least, one might.

An interesting case has surfaced in Voronezh, Russia, where a man is suing a bank for more than 24 million Russian rubles (about $727,000) in compensation over a handcrafted document that was signed and recognized by the bank.

Dmitry Agarkov said that in 2008 he received a letter from Tinkoff Credit Systems in his mailbox. It was a credit card application form with an agreement contract enclosed, much like the applications Americans receive daily from Visa (NYSE:V), Mastercard (NYSE:MA), American Express (NYSE:AXP), or Discover (NYSE:DFS). Agarkov filled in the form and returned the signed application, though what he sent back was not exactly the same document the bank had sent him.

A promotional image from Tinkoff Credit Systems' website.
Agarkov changed some parts for his own benefit -- most notably, the small print. He opted in for a 0% APR and no fees, and added that the customer "is not obliged to pay any fees and charges imposed by bank tariffs." He also changed the URL of the site where the terms and conditions were published from www.tcsbank.ru to tcsbank.at.ua. Additionally, he added a special clause that would protect him should the bank break the agreement in a unilateral manner. For each unilateral change in the terms provided in the agreement, the bank would be asked to pay the customer (Agarkov) 3 million rubles (about $91,000), or a cancellation fee of 6 million rubles ($182,000).

Agarkov then sent his updated agreement to the bank, and shortly thereafter received the bank's signed and certified copy, as well as a credit card. 

However, after two years of active use, the bank decided to terminate Mr. Agarkov’s credit card in 2010 because he was late paying the minimum required amounts. In 2012, the bank sued Agarkov for 45,000 roubles ($1,363) – an amount that included the remaining balance, fees, and late payment charges. The court decided that the agreement Agarkovcrafted was valid, and required Agarkov to settle only his balance of 19,000 rubles ($575).


Dmitry Agarkov, the customer who rewrote the rules for his own credit card. Photo republished with permission from RIA Voronezh.

Despite the apparent victory, Agarkov fought back: On August 1, the Kominternovsky District Court of Voronezh launched hearings about Agarkov's countersuit against the bank. As Tinkoff Credit Systems had not honored eight clauses in the agreement, Agarkov now wants the bank to pay amends of 24 million rubles ($727,000) total. The law firm Konsultant, which is representing Agarkov, says that the bank’s decision to terminate the agreement cannot be lawful because his client was not paid 6 million rubles, as per terms of the amended agreement.

The bank has so far said that the case was related to "a nonrecurrent technical issue," and it is willing to have its day in court. The next hearing will be held in September.

UPDATE:

The dispute between Agarkov and Tinkoff Credit Systems escalated when the bank's chairman, Oleg Tinkov, took to Twitter to respond to media interest in the case. (See: Russian Bank Chairman Comments on the Fine Print Case: 'Nobody Will Win Anything From Us.')

Then, on August 14, both sides announced a settlement on undisclosed terms.

"The conflict is counterproductive, so we agreed to settle it by withdrawing our mutual complaints," said Oliver Hughes, president of Tinkoff Credit Systems.

"This started as a joke in 2008... but the joke has gone too far," said Agarkov.

"Of course I won't recommend other people do what I did. Before you opt in for credit, you must think multiple times and carefully study your bank's terms. But if you agree, you'll have to stick to it."

By Nick Shchetko Aug 08, 2013 1:57 pm

Oleg Tinkov, the owner of Tinkoff Credit Systems, responded to the media hype around a customer who changed the fine print in his credit card agreement.

The highly popular story about a Russian man who had changed the fine print in his credit card agreement and is now suing the bank, developed further today as the bank's owner weighed in.

Oleg Tinkov. Photo from his Twitter.
Oleg Tinkov, the head of Tinkoff Credit Systems bank (he also holds a 61% stake in the company) commented on the story via Twitter:

"With regards to the man from voronezh, our lawyers say that he'll be awarded not 24 million but a whole 4-year sentence for fraud. now it's the matter of principle for @tcsbank."

He added:

"It's time to stop this 'diamond dream' and daydreams about 24 million. Nobody will win anything from us, that's just a dream to get rich."

"Oh my god, what a country! You treat fraudsters as heroes," he also ranted on Twitter, referring to Russia.

Russian media outlet RIA Voronezh, which was first to break the story yesterday, quoted the bank as stating that the incident happened due to a technical failure and the amount of the lawsuit totaled just 900,000 Russian rubles (about $27,000), not 24 million rubles.

The lawyers on the plaintiff's side noted that the 24-million-ruble figure was the amount of the compensation they had asked for to settle the case before going to court. The amount being disputed was reduced to avoid much higher judiciary fees, which would have been triggered if the figure passed the 1-million-ruble mark. They noted that if they were to win this case, they would follow this suit with a claim for a larger amount and would expect an "automatic" victory.

Agarkov and his lawyers were also disappointed to see that the bank representatives publicly called Agarkov a fraudster and expect both the bank and Tinkov to apologize for the allegations.

"We're surprised that a person was accused in a felony and even provided with his alleged jail term without a decision from a court," said Dmitry Mikhalevich, Agarkov's lawyer.

And if the bank doesn't retract its accusatory statement, it might have another lawsuit on its hands, they warned. "It's courts that still pass judgments in Russia, not bankers," said the lawyer.

Dmitry Agarkov (his surname was previously reported by Russian Media as Alexeev for privacy reasons), from Voronezh, Russian Federation, is hoping to win 24 million Russian rubles (about $727,000) in compensation after he handcrafted a new agreement for a credit card offer sent to him in the mail, much like the offers Americans receive daily from Visa (NYSE:V), Mastercard (NYSE:MA), and American Express (NYSE:AXP). Agarkov's re-written agreement was signed and recognized by the bank.