Archive May 31, 2019

Unlicensed non-bank creditors

With the development of the non-banking sector and the increase in competition, there are various violations of the law, or credit-related irregularities, namely, the provision of credit services by unlicensed lenders who, due to the lack of a license, are not entitled to do so.

The activities of these unlicensed lenders are worrying consumers, or, more specifically, borrowers, because they are concerned that they may come across unknowingly confronting lenders engaged in illegal commercial practices, thereby exposing them to different, larger or smaller, financial risks.

The absence of this license makes these creditors

The absence of this license makes these creditors

To be considered irresponsible, dishonest, untrustworthy, and, above all, illegal commercial practices, which exposes them not only to their clients who, without knowing themselves, have established credit obligations with offenders but also themselves. Before making any kind of credit commitment, especially for lenders in the non-banking sector, make sure that the particular creditor is included in the list of licensed creditors of CRPC.

The list of licensed lenders can be found on the CRPC website and is constantly updated. Be warned that the perpetual license on the CRPC website is defined as a special permission to provide consumer crediting services, so don’t get stuck. These licenses are issued on 29.03.2011. Cabinet Regulation No 245 “Regulations on the Procedure for Issuing, Re-registering, Suspension and Cancellation of a Special Permit (License) for Provision of Consumer Lending Services and Paying the State Fee for a Issue and Re-registration of a Special Permit (License) ), as well as Special Permits (Licenses) for a Capital Company the conditions of paragraph.

To make your credit commitments

To make your credit commitments

Even more secure and to minimize the risks of potential credit liabilities, check out only the list already mentioned on the CRPC website, but also the list of members on the website of LNKA or the Latvian Non-Banking Lenders Association. First of all, LNKA has united only licensed lenders whose activities are oriented towards more complete development of the non-banking sector, improvement of the image of LNKA members and advocacy, taking care of the long-term development of the non-bank sector.

Common standards and philosophy


Secondly, the members of LNKA work according to common standards and philosophy, purposefully pursuing responsible and honest commercial practice.

The choice of a creditor in the lists of both websites creates double security and credibility for potential credit commitments, but the borrower must also treat this credit seriously and responsibly – only when both parties to the credit commitment behave responsibly, credit commitments will be safe and successful.