Update on Consumer Credit Legislation in Poland

28 June 2019

INTERNATIONAL PERSONAL FINANCE PLC ("IPF" or the "Company")

UPDATE ON CONSUMER CREDIT LEGISLATION IN POLAND

International Personal Finance notes that on 25 June 2019 the Council of Ministers in Poland further amended the draft set of proposals to reduce the existing cap on non-interest costs that may be charged by lenders in connection with consumer loan agreements.

This latest modified draft proposal adopted by the Government is for a flat level cap of 10% of the loan value (currently 25%) and the additional cap per annum would be reduced to 10% (from 30%).  The combined total of the flat 10% and the time-dependent 10% per annum would not be able to exceed 75% of the loan value (currently 100%). The draft proposals are not available at this time.

This latest change follows the adoption of the proposals at a similar governmental meeting last week, 18 June 2019, for rate cap charges at 20% of the loan value and the additional cap per annum at 25%. 

We understand that the proposals will be referred to the EU for review and comment, and may also proceed to Parliament for consideration, during which they would be debated and could be modified further.  IPF will be contributing actively to this process to seek a more positive outcome for consumers and businesses.  We will update the market with our assessment of the potential financial impact on the Group when and if the proposals are finalised and enacted.

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