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On June 12, 2018, the Consumer Protection Center (CRPC) adopted a decision concerning the violation of the collective interests of consumers by which AS Mogo (hereinafter referred to as the "Company") was sentenced to a fine of € 80,000
By decision, the Company was required to put an end to unfair commercial practices by developing and approving detailed and traceable customer reimbursement procedures and badessing the ability of consumers to repay their credit pursuant to the Consumer Credit Act. consumer protection (hereinafter PTAL). As part of the same company, the CRPC also decided on 29/05/2018 to impose a fine of 12,000 euros to implement a deceptive and misleading commercial practice that promotes irresponsible borrowing by sending SMS: "THINK! You have a cash loan of 425 EUR per month with a duration of 36 months! You will only pay EUR 25.58! To confirm the loan, call: +37166900900. "
1. CRCC has concluded that the Company has implemented non-professional business practices without providing the PTAL's appropriate capacity to repay credit badessments:
• allowing specific consumers to systematically repay credit violations, for example:
– grant loans to consumers, taking into account unofficial / unverifiable income, exceeding the maximum authorized amount of credits;
] – grant a loan to the consumer, without any badessment of its ability to repay the loan, solely on the basis of the guarantor's bank account.
• Without developing a procedure for badessing the consumer's ability to repay repay a loan that would provide a detailed, traceable and customary consumer the ability to repay the credit-based credit badessment system. r Real and sufficient information on consumer income and expenditure
The CRPC stresses that it is essential that the actual profits of consumers serve as a basis for badessing the creditworthiness of the consumer without undue risk . or sell your property to pay off a loan, or you may need to limit your daily expenses to basic needs. In general, consumer credit is essential and consumers need a service, but solvency badessment procedures should be sufficient to prevent as much as possible the provision of loans to consumers of which the financial situation may worsen after obtaining a loan. On the contrary, the Company has made it clear that the implementation of the recommended measures could result in a reduction in the number of borrowers in the Company and prevent consumers whose actual income exceeds documented earnings proven by obtaining credits, the CRPC decided that
2. On May 29, 2018, the CRPC took a decision in the event of an infringement of the collective interests of consumers, which imposed a fine of 12,000 euros on the Prohibition of Unfair Commercial Practices Act and the Council. of Ministers of 2016. Regulation No. 25 of 25 October. 691 "Regulations on consumer loans" distribution of inappropriate advertising by sending messages with the slogan "WELCOME! You have a cash loan of 425 EUR per month with a duration of 36 months! You will only pay EUR 25.58! To approve a loan, call: +37166900900 "(hereinafter – Advertising).
The company, sending SMS and mobile emails to its customers and potential customers with the text: "WE WILL CONTACT YOU! You have a cash loan (..)", the text of which clearly indicates that the client has received a cash loan that he had not previously requested. Advertising and Similar Content Email advertising was sent to a large number of clients or potential customers (over 28,000) from October 31, 2017 to November 3, 2017. The CRPC concluded that, upon receipt of a such offer, this could affect the customer's economic behavior, because it gives the impression that he received a cash loan without the consent, the application and the evaluation of the solvency of the client. To know the reasons for the obligations, to know the reasons for the information received and the reasonableness, the customer could decide to visit the home page of the Company, to telephone the telephone number of the Company or to take advantage of the information. other measures to obtain it.
The manner of presenting the advertisement and evaluating the content of the advertisement concluded that the content of the advertisement directly deceives the consumer on the loan granted, which could negatively affect the economic behavior of the person.
The CRPC emphasizes that the corporation is obliged to implement commercial practices. act in good faith and comply with all the requirements of its by-laws, including internal procedures approved by the Company and, in accordance with the conclusion of a consumer credit agreement, evaluate the ability of the consumer to repay the loan. ]
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