This stems from the so-called mystery shopping carried out by the National Bank of Slovakia (NBS), the country’s central bank. The bank, however, did not reveal the names of the non-banking firms or how many inspections it made. The Association of Consumer Loans Providers has welcomed the inspections and says that they will help remove the deficiencies.
Representatives of NBS visited the non-banking firms, which were granted a licence and have the most clients, to obtain the offered products. They revealed that some non-banking firms do not require proof of income or even force the clients to report higher income than they actually have. Another problem is hidden additional services which increase the price of the loan and are part of the general conditions without the clients knowledge of them, the public-service broadcaster RTVS reported.
Moreover, the self-employed were offered business loans, though they wanted money for private purposes. Some clients even received less money than they asked for, since the non-banking firm already deducted the first instalment, RTVS informed.
“The results are alarming,” said Roman Fusek of NBS, as quoted by the TASR newswire.
If NBS reveals further deficiencies, the companies may be sanctioned and even lose the permit to carry out their business, TASR wrote.
The results prove that the inspections were not formal, said Ivan Kahanec of the Association of Consumer Loans Providers.
“We perceive it has a good signal and that the revealed practices will be remedied,” Kahanec told RTVS.
25. Nov 2015 at 6:35 | Compiled by Spectator staff