Minister of Justice Zbigniew Ziobro announced that he would fight loan sharks and dishonest loan companies. A package of changes in the regulations was proposed, concerning, among others purchases in installments or payday loans.
As the ministry emphasizes in the communiqué, ” changes in the law are to effectively protect Poles against the scourge of loan sharks and abuses of loan companies. They are to put an end to the exploitation of customer ignorance and trust. They are to end preying on poverty and mischief in the life tragedies of people forced to take loans at usury rates. “
“The state must limit and tame the desire for profit and foraging corporations, smaller companies, and sometimes also ordinary loan sharks ” – said Zbigniew Ziobro, head of the Ministry of Justice, during a press conference.
He added: ” They often try to maximize their profit against the law, at the expense of their clients. We want the loop not to tighten around the neck of Poles, we want this type of dishonest practices to be civilized once and for all, which is why we propose solutions that boil down to the principle that it should be cheaper, safer and fair. “
As said – the new rules will include “Precisely define when we are dealing with usury that enters the realm of crime.” The resort adds that the freedom to set additional payments for installment purchases will end. You will no longer be able to add unlimited margins, commissions, fees for submitting or examining an application, compulsory insurance or any additional fees.
The highest limit of additional fees for installment purchases
It will be set at 45% of the loan amount per year. If the installments last 6 months, the additional costs cannot exceed 32.5%. Interest will remain at its current level, i.e. a maximum of 10 percent. per year.
The stricter rules are to apply when using payday loans. The limit of additional fees for such loans will be limited to 45%. loan amounts per year. With a loan for a month – this limit will be only 22 percent. The interest limit on the loan itself will be unchanged – 10%.
The amendment will introduce limits in the scope of established collateral, which – as the ministry points out – means that “there will be no collection of flats and houses, depriving the entire life of people who have not repaid loans of a much lower amount “.
Loan collateral will not be able to exceed debt increased by 45%. Demands to transfer ownership of the real estate to secure liabilities will not be possible. The possibility of bailiff enforcement from a flat will also disappear if the debt does not exceed 5 percent. the value of the house or flat.
Banks will also be under the microscope
According to the ministry, in the case of a bank loan granted under the Consumer Credit Act – additional fees may not be higher than 45 percent. loan amounts per year and the maximum interest will be set at 10 percent. per year.
The same will also apply to a bank loan for a natural person for a higher amount. With a loan granted on the basis of a civil law agreement, the limit of additional fees is to be a maximum of 25%.
The new regulations define which loans are usury and will be punished by breaking the law. The project provides for ” imprisonment from 3 months to 5 years for anyone who, in return for a cash benefit arising out of a natural person, demands from him payment of additional costs twice higher than the maximum or demands from him payment of interest at a rate twice higher than the maximum ” – as we can read in the communication.