The Latvia Group of Non-Bank Lenders (LGB) believes that the regulations adopted in the Law on Non-Bank Lenders could be unconstitutional. Of course, the LGB is against the capping of interest rates, which could make it more or less profitable to issue quick loans above 100 USD (loans under 100 USD are not subject to this law), but in principle there is also a complaint against the ban on overnight fast loans. .
January 13, 2016 A new name for the Group of Non-bank Lenders is “Latvian Group of Alternative Financial Services”.
Why borrow at night?
Even for long, it is not clear why borrowing at night would be very important. Well, for example, there is a stock item to buy or a debt to repay. But these are very rare cases, too rare and unimportant to have any objections at all. On the other hand, it is more than clear why not give credit at night. In very simple terms, alcohol is also not sold at night; people have no rational basis at all for borrowing at night, which, by the way, many lenders do not even offer.
On the other hand, the statements of the LGB on recourse to the Constitutional Court are very disturbing. Admittedly, it is not possible to say whether such a request could be upheld – that is, to withdraw the amendments adopted on 12 November – but to sum up the LGB’s statements, on the one hand, the association is adamant, constantly asserting that legislative changes destroying the industry, but at the same time carrying out various self-regulatory activities. It is difficult to take the association’s statements seriously because there are no (at least publicly) alternatives to ruled regulation; nor does it publicly agree to the ‘little things’, including the same requirement for overnight credit.
The association does not provide alternatives,
Just as well, this position is taken because the association is not ready for dialogue, but it is ready! What else does self-regulation indicate, other than its willingness to cooperate? Such a policy is split, and instead of a constructive solution it offers emotional expression, shouting at the child and hiding his head in the ground. On the other hand, of course, we should also mention Menshy’s remarks about “ushers”, which could cause some confusion for those who are actually offering illegal loans.