The draft of the new Act which abolishes the current Act No. 145/2010 Coll. on consumer loans brings new obligations which both the new and current providers of consumer loans must fulfil. These changes have to tighten up or define the conditions for their non-bank providers.
The provider of a consumer loan must fulfil the following basic requirements:
- Registered capital in the minimum amount of CZK 20,000,000 with substantiation of the origins of the funds
- The LLC company must establish the supervisory board and have its registered address on the territory of the Czech Republic
- The company providing the loan and the person/company controlling the provider must substantiate criminal and financial impeccability
- Submission of the business plan of the applicant
- Submission of the regulations regarding the dealings with clients when negotiating the loan
- The provider must adapt its internal regulations to the requirements of the new Act
- The provider must train its personnel
The Act should become effective at the end of March 2016, when ends the deadline laid down by a directive for its implementation. Current providers must submit the application on a prescribed form to the Czech National Bank within the 6 months from the day of effectiveness of the new Act. If the provider does not apply for the issuance of the license the current authorization expires after 6 months from the effectiveness of the Act.
Should you like to make use of our consultancy services in this matter or if you have any questions, please, do not hesitate to contact us.
