16 December 2013
Holland Authority for the Financial Markets (AFM) has imposed an fine that is administrative BA Finance, a party providing payday advances, and its own two directors. The fines are for providing loans that are short-termcalled вЂpayday loansвЂ™) with no acquired a licence to do this.
The 3 split magazines associated with fines as well as the associated decisions are given just below.
AFM imposes fine on BA Finance for providing loans that are payday a licence
Holland Authority for the Financial Markets (AFM) has imposed an fine that is administrative of on BA Finance B.V. The fine is imposed because BA Finance offered payday advances when you look at the duration from might 2011 to March 2013 with out acquired a licence from the AFM. This can be a contravention of part 2:60 (1) associated with the Financial Supervision Act (Wft).
Finance it self just charged customers service that is low, if the loan wasn’t paid back inside the agreed 7-day period, BA Finance would pass the mortgage to Credit asking B.V. for collection, whom charged the buyer high costs for non-compliance, for instance в‚¬135 on that loan of в‚¬500. Loans were passed away towards the collection agency in around 80 % of instances.
Initially, Credit asking ended up being owned by the owner of BA Finance. The business ended up being later on offered, though its working techniques remained exactly the same. Following this, BA Finance used a different approach, under which a paid guarantee needed to be acquired from Credit asking in purchase to obtain that loan.