Within the very first half-year of 2016, the amount of payday advances awarded in Lithuania reduced by two thirds 12 months on 12 months, whereas the quantity lent to customers halved. Credit lenders assessed customer solvency more responsibly. When it comes to very first time in history, credits overdue reduced in number. Modifications are obvious. Active guidance, stricter demands associated with the Law on Consumer Credits that arrived into force at the beginning of the 12 months, and competition forced credit loan providers to fundamentally alter their approach and evaluate customer solvency more cautiously. Every one of these modifications relieve the loan that is overdue burden, that also mitigates the possibility of severe social repercussions,вЂ™ said Vitas Vasiliauskas, Chairman for the Board associated with Bank of Lithuania.
In the 1st half-year of 2016, the entire level of new pay day loans given, set alongside the previous half-year, paid down by 68.7 % вЂ” to 130 thousand; in identical duration, the quantity of payday advances provided reduced by half вЂ” to EUR 65 million, its cheapest value since 2013.
Credit lenders examined customer solvency so much more cautiously. Continue reading