Let me make it clear about alterations in pay day loan market — more responsible financing, fewer indebted

Let me make it clear about alterations in pay day loan market — more responsible financing, fewer indebted

the amount of pay day loans given in Lithuania decreased by two thirds on year, whereas the amount lent to customers halved year. Credit lenders assessed customer solvency more responsibly. When it comes to very first time in history, credits overdue reduced in number.

‘Changes are obvious. Active guidance, stricter needs regarding the Law on Consumer Credits that arrived into force at the start of the and competition forced credit lenders to fundamentally change their approach and assess customer solvency more cautiously year. Each one of these modifications relieve the overdue loan payment burden, that also mitigates the possibility of serious social repercussions,’ said Vitas Vasiliauskas, Chairman regarding the Board of this Bank of Lithuania.

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In the 1st half-year of 2016, the entire level of new pay day loans provided, when compared to past half-year, paid off by 68.7 percent — to 130 thousand; in identical duration, the quantity of pay day loans awarded reduced by half — to EUR 65 million, its value that is lowest since 2013.

Credit rating lenders evaluated customer solvency a lot more cautiously. The share of approved applications contracted to 26 per cent in the first-half year of 2015, approximately 40 per cent of applicants were granted a payday loan; year on year. Continuar leyendo «Let me make it clear about alterations in pay day loan market — more responsible financing, fewer indebted»