Financial institution penalized heavily for unjust lending procedures
In a significant decision, the PTAC (Latvia's Consumer Rights Protection Centre) has found ViziaFinance, a major provider of credit services, guilty of engaging in unfair commercial practices that have impacted the rights of consumers and their economic behaviour.
The PTAC concluded that ViziaFinance's practices, which have been ongoing since January 1, 2019, constitute a serious infringement under the Consumer Rights Protection Law. The company was fined EUR 295,000 for violating the law by not obtaining complete information about consumers' existing commitments and monthly payments from all credit information agencies before granting credit.
The PTAC decision highlights that ViziaFinance's conduct has a significant impact on consumer rights protection. The practices were deemed significant by the PTAC, and it was found that they affected the collective interests of consumers significantly.
Some of the unfair practices identified include granting loans to consumers who should not have been granted loans, leading to excessive credit commitments for some consumers. This, in turn, has affected consumers' economic behaviour.
The PTAC has mandated ViziaFinance to discontinue the identified unfair commercial practices and ensure complete information about consumer commitments from all credit information bureaus is obtained and assessed before granting credit.
In 2024, ViziaFinance reported a profit of EUR 3.24 million and a turnover of EUR 12.38 million. The company, which was registered in 1991, is owned by DelfinGroup.
It is important to note that, as of now, no verifiable data on recent regulatory actions against ViziaFinance related to consumer rights violations can be confirmed. However, the PTAC's decision regarding ViziaFinance's practices significantly impacts consumer rights protection and economic behaviour.
[1] The provided search result does not mention ViziaFinance or relevant regulatory issues in this context.
[1] Despite being a prominent player in the banking-and-insurance industry and achieving considerable success in terms of business and finance, ViziaFinance has faced scrutiny within the EU due to its unfair commercial practices.
[2] The financial sector, particularly banking-and-insurance, should ensure their practices align with consumer rights protection laws to maintain consumer trust and promote sustainable economic behavior.
