UOKiK issued decisions regarding a loan company
The President of the Office of Competition and Consumer Protection issued two decisions regarding the Ferratum Finanse loan company: one of them concerned a violation of consumers’ collective interests, the other referred the use of abusive clauses.
The loan company Ferratum Finanse provided loans to people in a difficult financial situation. It advertised its offer on the Internet on advertising portals. The Office found that the company terminated most of the contracts. It made profits on fines imposed on its clients who failed to establish security within three days. The fine would amount to PLN 2,000 or to a half of the interest for the entire loan. UOKiK decided that it was not possible to provide the required guarantees in such a short time, and that fines were excessive. The Office decided that misleading clients is a violation of consumers’ collective interests and considered high contractual fines to be abusive clauses.
The fine for violation of consumers’ collective interests and the use of prohibited clauses amounts to over PLN 81k. Ferratum Finanse is obliged to inform its clients about UOKiK’s decisions. The company ceased using these disreputable practices, but this is because it had changed its business activity profile.