IMPLEMENTATION OF THE BORROWER-PAYS PRINCIPLE AND THE PRINCIPLE OF GOOD FAITH IN LENDING TO BORROWERS

Abstract

The article considers the interrelation between the borrower-pays principle and the principle of good faith in lending to borrowers on the example of interest payment by borrowers and other payments under the loan agreement. The author analyzes the specificity of the principle of good faith when establishing, changing and collecting interest for the use of the loan and other payments under the loan agreement. The article concludes that the law does not contain special rules regulating the behavior of the creditor in the establishment and change of interest for the use of the loan and other payments, in this connection the provisions of the Civil Code of the Russian Federation on inadmissibility of unfair conduct of the parties should be applied. Taking into account that the provisions of the Civil Code of the Russian Federation concerning good faith of the parties are evaluative in nature, the author on the basis of court jurisprudence identified cases of bad faith behavior of the creditor when establishing or changing the interest charged for the use of the loan and other payments.
The article also defines the influence of the ratio between the borrower-pays principle payment and good faith concerning the forms and methods of protection of the rights of the borrower and improvement of the legislation on payment of interest and other payments.