[The Final Dakar]

$700k windfall: Russian man outwits bank with hand-written credit contract — RT Business

Disappointed by the terms of the unsolicited offer for a credit card from Tinkoff Credit Systems in 2008, a 42-year-old Dmitry Agarkov from the city of Voronezh decided to hand write his own credits terms.

The trick was that Agarkov simply scanned the bank’s document and ‘amended’ the small print with his own terms.

He opted for a 0 percent interest rate and no fees, adding that the customer "is not obliged to pay any fees and charges imposed by bank tariffs." The bank, however, didn’t read ‘the amendments’, as it signed and certified the document, as well as sent the man a credit card.

However, after two years of active use, the bank decided to terminate Agarkov's credit card because of overdue payments. In 2012, the bank sued Agarkov for 45,000 rubles ($1,363) - an amount that included the remaining balance, fees, and late payment charges, which violated the actual agreement. The court decided that the agreement Agarkov crafted was valid, and required him to settle only his balance of 19,000 rubles ($575).

The bankers had to admit the mistake, says Agarkov’s representative Dmitry Mikhalevich.

"They signed the documents without looking. They said what usually their borrowers say in court: 'We have not read it,'” says Mikhalevich.

Despite the victory, Agarkov decided to sue Tinkoff Credit Systems for fines of 24 million rubles ($727,000) for not honoring the terms of the agreement, and the decision to terminate the contract without paying 6 million rubles ($182,000) fee.

"Our lawyers think, he is going to get not 24 million, but really four years in prison for fraud. Now it's a matter of principle for @ tcsbank,” founder of the bank Oleg Tinkov tweeted.

Shady but hilarious

[subego]

If he tried to pull that here, wouldn't the bank had to have initialed the amendments for full kosher?

[The Final Dakar]

I dunno. I just figure the court would throw it out because he pulled a fast one by not telling them he amended it.

[subego]

Exactly. Which is why you do the initials, to show the amendment's been read by all parties.

[Phileas]

Yep, needs initials. Otherwise anybody can amend anything after the signing.

[reader50]

Note that he amended the unsigned credit offer. He signed his revised offer, sent it to the bank, and bank reps signed that offer. According to the story, he never amended it after the bank had signed, only before.

So the bank sent him a contract offer. He sent back one with better terms, and they signed.

[Shaddim]

Smart guy, stupid bank.

[el chupacabra]

I guess they wrote too much fine print for even themselves to read.

[subego]

This goes back to the initials. In United States, contract you give is same as contract you get back, unless you get party initials.

[Phileas]

Originally Posted by reader50 

Note that he amended the unsigned credit offer. He signed his revised offer, sent it to the bank, and bank reps signed that offer. According to the story, he never amended it after the bank had signed, only before.

Still would not mean anything, unless the changes had been initialed. The bank sends an offer, he revised it - for this to be legally binding, the bank then needs to acknowledge these revisions one by one, not just by signing the document.

[el chupacabra]

Originally Posted by Phileas 

Still would not mean anything, unless the changes had been initialed. The bank sends an offer, he revised it - for this to be legally binding, the bank then needs to acknowledge these revisions one by one, not just by signing the document.

Why cant it be considered that he sent the bank an offer, and they accepted it? In any case one could just write/forge some initials next to it and they probably still wouldnt notice.

[Waragainstsleep]

This man is my new hero.

[The Final Dakar]

Originally Posted by reader50 

Note that he amended the unsigned credit offer. He signed his revised offer, sent it to the bank, and bank reps signed that offer. According to the story, he never amended it after the bank had signed, only before.

So the bank sent him a contract offer. He sent back one with better terms, and they signed.

He also scanned their document and made the changes there. If I'm getting the gist correctly, he made them think he sent them back their own contract. Strikes me as pretty transparent fraud.

[mindwaves]

Smart guy.

[Uncle Skeleton]

Originally Posted by Phileas 

Yep, needs initials. Otherwise anybody can amend anything after the signing.

This seemed right to me for the past 4 days. But now that I think about it, there's no way that he could have snuck into the bank's records and amended their copy of the contract. As long as both sides keep a copy, then they "police" each other. If the bank can produce no document that has (A) his signature and (B) no amendments, then he doesn't owe them their fees or interest. If he amends his own copy, then they can produce their copy with his signature and the terms they agreed to. If they don't agree to the changes, then they don't loan him the money. It all... works?