Change in legislation relating to LV private loans

Came to know that there will be changes in Latvian consumer protection law relating private loans.

There are at least two aims from government with this change. First, to ensure person is actually able to give back the money he/she has borrowed and the second is to make the deal as fair as possible towards the person who borrows the money. Word fair is expressed as percentage per day, i.e., lenders are not supposed to earn more than 0.07% a day (25% a year).

As per spokesperson Gints Āboltiņš representing alt-finance association, this law change is unreasonable towards alt-finance institutions. He speculates that many of them could go out of business.

Given my scepticism and experiences in Wild Wild East, I will be cautious with too much exposure towards LV issued loans. 

Looked at the current exposure and it is about 330 EUR out of 5100 EUR. Let us see how it affects the loan offers when the law comes in force in 01.01.2019.

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