Law regulating interest rates of fast loans failed
10.08.2009, 17:07 The law that regulates fast loan interest
rates failed, since in reality the fast loans haven’t gone any cheaper appears
from the analysis by kiirlaen.info, aripaev.ee reports.
A law amendment which regulates fast loan market came to force slightly more
than three months ago. An upper limit was set to loan interests, Tõnis
Hinnosaar, co-founder of Webistre Solutions OÜ which manages kiirlaen.info.
The upper limit comes to force only when some assumptions are filled. The
main thing is that lender may not take advantage of borrower’s difficult
situation. Borrower must be aware of all loan terms and issuer must be aware of
borrower’s economic situation.
“One must admit that there haven’t big changes,” Hinnosaar said.
“We forecasted then that borrowers start to think of new possibilities how to
tax the loans. It has happened, since several loan lenders have reduced interest
rates, but have added credit rating analysis or some other similar service. In
practice it means that loan will cost as much as before,” he said.