Limit the interest rate on consumer loans by 1% per day – this is the bill #9422 initiated by the head of the Parliamentary Committee on Finance, Tax and Customs Policy Daniel Getmantsev with 12 colleagues, while recently the National Bank has proposed a tougher ceiling – 0.8% per day.
“Today, ultra-high prices are fixed in the microcredit market: the nominal rate can reach 5% per day, and the average nominal annual interest rate – more than 1000% per annum. That’s why we initiated with colleagues a bill to improve state regulation of financial services markets,” Getmantsev wrote in his Telegram channel on Monday.
The rate of 1% per day according to the formula of compound interest brings to an annual rate of about 3880%, 0.08% – 1930%.
According to the head of the committee, it is also proposed to prohibit the lender to require payment of any fees not specified in the contract on consumer credit, as well as unilaterally extend the term of the loan – prolongation should be carried out solely by signing a supplementary agreement by agreement of the parties.
Getmantsev said that the bill requires the transfer of credit information about all consumer loans, regardless of amount to the credit bureau.
The text of the bill is not yet available on the parliament’s website.
National Bank in its report of May 1 on the proposed changes to the law “On consumer credit” proposed to give the regulator the right to establish minimum requirements for the process of checking the creditworthiness of the borrower. “Since some financial companies do not currently have such requirements, there is virtually no assessment of the borrower’s creditworthiness. At the same time, the lender itself deliberately chooses a business model, in which a bona fide borrower pays exorbitant interest not only for itself, but also for those who do not fulfill their obligations,” explained the NBU.
In addition, the National Bank initiated additional penalties for violations of the established requirements, as the rules without liability for their violation are usually ineffective.
