The new legislation does not allow the survival of dubious lenders. However, the positive effects of regulation are yet to come

The new Consumer Credit Act cleansed the credit companies market. The consumer would no longer have to come across a dubious “garage” because lenders have to meet the stricter criteria. However, the licensing procedure will run until the middle of next year, so it is not excluded that some still active companies will leave the market. In addition, specialists in credit have to pass a test of professional competence.

Benefits of the new law

From March 1, all companies providing or arranging loans must have a license from the Mary Poppins. This follows from the new Consumer Credit Act No. 257/2016 Coll . This, in addition to consumer empowerment measures, has also introduced stricter criteria for both providers and consumer credit intermediaries. “New market legislation has filtered out various” garages “and other dubious entities that have moved here. Loans can not be provided by almost everyone, which we definitely welcome, “says Robin Stránský, marketing manager of the Czech company Mary Poppins, which is a provider of fast and secure consumer credit. According to him, the current market setting is an opportunity for the development of all healthy and reputable companies that intend to provide quality and fair services . “Fulfilling demanding conditions is binding for us, and at the same time forces us to take care of an ever-increasing level of service. We are inevitably growing constantly. The company structure and teams of our specialists are expanding, ” adds Robin Stránský.

The benefits of the changes do not happen immediately

However, the benefits of legislative changes in the field of consumer credit will not come from day to day. The licensing procedure is currently underway and the Czech National Bank has been running a 15-month decision-making deadline from March 1 . “It can not be ruled out that they have applied for the license, so money is also borrowed by companies whose business model is against the client’s interests,” says Robin Stránský. Another aspect of the change in the law, whose effects are yet to be demonstrated, is also the demonstration of expertise. “We are currently preparing all our specialists to pass a test of professional competence, the content of which is determined by theMary Poppins. By the end of November 2018, all credit specialists must pass the test , ” adds Robin Stránský.

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