Advertising, Financial Services, Latvia, Legislation, Loan

In order to impede irresponsible borrowing and improve the sector's reputation, head of the Non-Banking Lenders Association Baiba Fromane urges Lateko Lizings, the owner of LatCredit, to halt the advertising campaign. If the company refuses to do so, the Consumer Rights Protection Center will take specific measures, the association indicates.

"Short-term credits are comparatively new service in Latvia's financial sector, it is therefore important that loans are used properly. The advertisement in which people are urged to borrow money for parties or in this case – festivals, is unacceptable, as it facilitates irresponsible borrowing and creates a wrong impression about the purpose of the service," the association indicates in a press release.

The Consumer Rights Protection Center's guidelines stipulate that credit companies are not allowed to advertise irresponsible borrowing.

"The association makes sure that its members and other companies in the sector practice honest and responsible business. Reliable credit companies are labeled as "Responsible Lenders", which helps customers to recognize which credit companies can be trusted," Fromane emphasized.