Loan companies to pay over pln 1.65 million in fines in Poland

Polish Authority of Competition and Consumers Protection (pl. UOKiK) imposed a fines amounting to 1,65 million PLN on two loan entities. The main reason was application of unfair market practices by them. Both companies mislead their customers in advertising of financial products, which they offered.

UOKiK claims that the advertisements presented by the punished loan entities significantly differ from the reality. The main charges in favor for imposing fines were:

• lack of information in presented advertisements with regard to all conditions necessary to obtain preferential loan,
• understated annual percentage rate of loan (741.82% while in fact it was 2333.95%),
• incorrect amounts of interests charged,
• lack of information about loan intermediaries (one of punished entities offered loans as an intermediary).

Both punished companies have challenged the decision.

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