Financial Services, Latvia, Legislation, Loan

International Internet Magazine. Baltic States news & analytics Friday, 29.03.2024, 06:55

Stricter regulations on "quick" loans passed in Latvia

BC, Riga, 28.05.2015.Print version
Saeima in Latvia decided in the final reading today to pass amendments to the Consumer Rights Protection Law, stipulating stricter regulations on the so-called "quick" loans, including a prohibition to issue loan agreements during the nighttime hours.

According to the amendments, the total cost of a loan may not exceed 0.55% of the principal loan amount a day during the first week after the loan is issued, 25% a day from the eighth to 14th day, and 0.2% each subsequent day, the Saeima Press Service previously informed LETA.

 

The law also prohibits lenders from issuing loan agreements during the nighttime hours, namely, from 11 p.m. to 7 a.m.

 

It was also decided that the Financial and Capital Market Commission would not be tasked with supervising "quick" loan companies, and that the Consumer Rights Protection Center would still be supervising the quick loan industry.






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