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International Internet Magazine. Baltic States news & analytics Tuesday, 09.06.2026, 08:32

How can a borrower get protection against banks in Latvia?

Aleksandrs Koposovs, lawyer of the Law office INLAT PLUS, 29.06.2010.Print version
Question: I’m a guarantor for the mortgage loan issued by the bank in Latvia. The sum of the loan is 10 000 euros and the loan payment schedule is being duly performed, but the problem is in the following. The banks won’t issue any loans to me due to the fact that I’m a guarantor for that mortgage. The borrower requested the bank to relieve me from the guarantor’s obligations, but he got a refusal. At the moment the borrower can only add more guarantors, but is not entitled to replace a guarantor with another person. Is there a way to solve this problem?

Answer: Unfortunately, this problem may not be solved without bank’s consent. The bank may decide at its sole discretion whether to issue a loan to the person who is a guarantor or not. Accordingly, replacement of a guarantor with another person may also be carried out only upon consent of the bank.

 

The last year’s amendments to the Consumer Rights Protection Law – the only thing that has recently changed for the benefit of the borrower. According to Section 81 of the Consumer Rights Protection Law, the creditor is not entitled to request from a consumer who has not made any significant violation of the contract:

 

            1) additional security of the granted credit on the basis of reduction of the value of immovable property in the credit security due to the changes in the immovable property market;

            2) any costs for revaluation of mortgage credit security during the term of the contract; or

            3) the pre-term repayment of the credit granted.

 

Law Office INLAT PLUS

Latvia, Riga, Brivibas 40-15

+371 67505970

+371 26403577

[email protected]





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