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The Ministry of Finance (FM) proposes to limit the maximum amount of "fast" credit to be issued and the possibility of extending such a loan repayment. It is expected that the Ministry of Education will prepare proposals for amendments to the law on consumer protection, which will be submitted to the Economic Commission for the Agrarian Environment and Regional Policy of Saeima.
The FM informs that in the distance or "fast" group of borrowers the situation is often that the borrower has problems with repayment of the loan at a time. Their borrower usually solves by extending the loan. Such a solution is essentially a medium-term disadvantage for the client compared to the possibility of hearing on a payment schedule, starting with a partial repayment of the loan.
According to the Ministry, it should be prohibited to extend the repayment terms more than twice and to set a payment schedule as a mandatory option in the credit process.
Subject to a repayment schedule, it would be possible to reduce the loan amount. .
Consumers often struggle to repay a loan in a timely manner if the total amount is to be repaid in the same payment, therefore, the FM encourages the restriction of the maximum amount for these types of loans.
FM proposal provides that the loan amount of a consumer loan of up to 30 days, providing for the repayment of a loan at one time, can not exceed 50% the minimum monthly national salary currently set at 430 euros.
explains FM
A study of the University of Latvia on the use of distance or loans "fast" in Latvia shows that in general, as a whole, hardly Ris 40% of respondents encountered reimbursement problems. Of these, 25.2% of the problems occurred several times. On the other hand, nearly 50% of those interviewed admitted that the most common solution to the problem of fast repayment is the extension of the loan.
The MF's regulatory framework only partially protects the interests of borrowers, focusing only on the applicable maximum rate. d, s, id) {
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