According to the information published by the President of the Office of Competition and Consumer Protection (UOKiK), UOKiK currently conducts over 60 proceedings regarding practices violating collective consumer interests on the market of short-term loans (the so-called payday loans).
The main objections of the President of UOKiK concern:
- the so-called rolled up loans - exceeding the limit, imposed by the Consumer Loan Act of 12th of May 2011, of non-interest consumer credit costs in the case of granting by the creditor to a consumer who has not fully repaid the loan, subsequent loans within 120 days from the date of disbursement of the first loan,
- failure to return part of the consumer credit costs in the event of early repayment.
Let's remind - in a certain simplification, starting from March 11, 2016 non-interest consumer’s credit costs cannot exceed 55% of the total loan amount per annum and cannot be higher than the total loan amount in the entire loan period. Described regulation, due to the formula used to calculate the limit, is mostly affecting the market of short-term loans (the so-called payday loans), preferring credit products with a longer repayment period.
Our Law Firm has successfully implemented at least two different business models that are lawful and allow you to conduct business activities on the short-term loan market.
We invite you to contact our Law Firm, which offers services in the field of:
- representation in proceedings before the Office of Competition and Consumer Protection (preliminary investigation, administrative proceedings regarding practices violating collective consumer interests),
- adaptation of the business model and contractual templates of loan companies to the requirements of the law.