On May 18, 2023, another package of provisions stemming from the Anti-Usury Act comes into force. This is supposed to better protect customers from over-borrowing, but there are two ends to the sword: some customers will be cut off by new rules that cut off access to loans and credit.
The regulations that have just come into effect are designed to ensure that customers who do not promise timely repayment do not take risks and do not take out loans. Lending companies will not be able to issue new loans to customers with a delay of at least 180 days. If they nevertheless decide to establish cooperation with such a debtor client, then if he does not repay the loan, the companies will not be able to seek enforcement from him or sell the debt to a collection company. As you can see, the entire burden of responsibility is shifted to these creditors in the event of the client’s insolvency.
Clients must be entered into databases
Thus, every time before disbursing a loan, companies will have to check the customer in the loan database, and also report to such a database after the loan is granted, in order to inform other companies about the customer’s situation. So far, there has been no obligation to use databases and collaborate with them.
The reporting obligation will apply not only to all credit companies, but also to financial service providers operating on a “buy now, pay later” model, that is, deferred payments. Until now, such companies were not required to inform the debtor bases about their customers, but now such an obligation will be equated to a loan.
This is not the end of the news. The provision of a loan for an amount exceeding twice the minimum wage (PLN 3,490 gross in the first half of 2023) will necessarily be preceded by the submission of a statement of income and fixed expenses by the client. The lender will be able to contact the employer to confirm the veracity of the application.
The number of credit companies is declining
New restrictions make lending less and less profitable. Lending companies have memories of the days when their employees plastered all the lights with paycheck to payday ads and there was no shortage of customers. This Eldorado ended with the introduction of maximum cost and interest laws. Data from the money.pl website shows that 43 companies were active in March 2022, and only 40 a year later. Tightening the screws on the anti-usury law will deepen this process, according to the service’s interlocutors. The sector will receive an additional impetus to close its activities from next year, when credit companies come under the supervision of KNF.
Source: Wprost
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