Administrative fine for pay day loan provider day that is beautiful

Administrative fine for pay day loan provider day that is beautiful

20 November 2014 Measure

On 3 September 2014, the Netherlands Authority when it comes to Financial Markets (AFM) imposed an administrative fine of €300,000 on breathtaking Day B.V. The fine ended up being imposed because within the amount of might 2012 up to and including August 2013 breathtaking Day offered payday advances without holding an AFM licence. That comprises an infringement regarding the Financial Supervision Act (Section 2:60, very first subsection, Wft).

(1) The AFM has announced the objection unfounded, while supplementing its reasons.

(2) The The District Court of Rotterdam declared the objection ended up being unfounded.

Stunning time offered consumers the chance to borrow funds quickly against high expenses through the websites that are special. Stunning Day advertised that no expenses had been charged when it comes to loan. In reality, customers needed to spend extremely costs that are high.


Breathtaking Day demanded an assurance to ensure that customers to be eligible for that loan. Customers could only get financing easily and quickly should they decided on a compensated guarantee from worldwide Credit and Debt Management Services Limited (GCDMS), which will be an event suggested by gorgeous Day. The expenses of a €250 loan for 25 times had been €55. This boils down to €803 for a yearly basis (relatively 321.2 percents). GCDMS paid an amount that is considerable breathtaking time of these solutions every month. The GCDMS guarantee consequently types an element of the gorgeous Day income model.

It is often unlawful since 25 May 2011 to provide pay loans without an AFM licence day. Gorgeous Day is certainly not exempted out of this licence requirement.

Serious infringement

It involves a severe infringement. Gorgeous Day took advantageous asset of a band of susceptible customers who had been struggling to remove a far more loan that is favourable a regular way, as an example when you are overdrawn on the re repayment account or simply by using credit cards. This involved the chance that these customers became increasingly further hidden with debt.


Providers of pay day loans demand a licence when they charge a lot more than minor expenses. If that is the situation they’re not permitted to charge prices that exceed the most statutory rate of interest of 15 percents.

A licence provides extra security to customers. Ahead of the AFM funds a licence, it checks, inter alia, whether a business complies with all the needs of properness, expertise and integrity. Furthermore, an ongoing business that holds a licence must conform to the alleged constant rules of conduct. These guidelines concern, on top of other things, the responsibility to just simply take great care in the supply of solutions to customers.

Quantity of the fine

A fundamental number of €2,000,000 relates because of this variety of infringement. The amount that is basic be increased or reduced according to or perhaps a severity or extent for the infringement or even the amount of culpability give explanation to do this. In our instance, the AFM considers it appropriate to improve the essential amount by 25 percents based on the severity associated with the infringement also to increase it by 25 percents based on culpability.

When determining the fine, the AFM additionally takes into consideration the capacity that is financial of offender. The financial capacity of Beautiful Day constitutes the reason to set the fine at €300,000 in the present case.

Interested events can submit the AFM’s judgment within the choice into the courts for review.

The AFM is invested in advertising reasonable and clear economic areas.

As a market that is independent authority, we subscribe to a sustainable financial system and success when you look at the Netherlands.

Leave a Comment

Your email address will not be published.