Advertising, Estonia, Financial Services, Legislation, Loan, Markets and Companies

If the parliament approves the draft law, consumer credit advertisements may contain in the future only certain information. The changes should result in a situation where the consumer credit advertising cannot be made more attractive with additional messages.

The advertising ban does not apply to housing loans, hire purchase, leasing or credit cards.

The ban on the advertising channels does not take away from consumer credit companies the opportunity to publish their trademark in these channels, provided that it is consistent with the principle of responsible lending.

Also, sponsor messages, which are not considered as advertising, are allowed in these channels.

There is an estimated more than 100,000 instant loan recipients in Estonia. Of these, approximately 35,000 persons have encountered difficulties in repaying the loan. Instant loans are currently the biggest cause of payment difficulties among people after fines.