Poland - Shadow-banking institutions - Decisions of UOKiK

Several dozen proceedings concerning unsupervised financial institutions are currently being conducted by the President of UOKiK. Decisions have recently been issued with respect to Pomocna Pożyczka and Baltic Money. The fines imposed on the two companies have totalled over PLN 500 thousan.

The President of UOKiK monitors the financial sector on an ongoing basis. At present, several dozen proceedings are being conducted with respect to unsupervised financial entities. Two of them have recently been brought to an end. The latest decisions of the President of UOKiK concern the companies: Pomocna Pożyczka (formerly PKF Skarbiec) and Baltic Money, which have been fined PLN 501 217 and PLN 3 335, respectively.

The Office discovered that both Pomocna Pożyczka and Baltic Money charged agreement preparation fees which did not correspond to the actual costs of drawing up an agreement. The fee was fixed on a uniform basis, without reflecting the costs incurred in connection with preparing the contract. In addition, neither of the two companies refunded that fee when no contract was ultimately concluded, thus imposing unreasonable costs on would-be borrowers. In the opinion of UOKiK, the part of the fee retained by the undertaking may not be greater than the costs actually incurred.

In addition, Pomocna Pożyczka failed to comply with its information obligations. In its advertisements, there was no information identifying the entrepreneur. They only contained a link to its website jedynatakapozyczka.pl. At that time, the company operated under its previous name (PKF Skarbiec). According to UOKiK, if consumers had been given full information that the loans were in fact granted by PKF Skarbiec, they would have been able to take an informed decision as to the choice of their loan provider. Moreover, the Office discovered that the company did not evaluate the creditworthiness of its customers although it was required under the Act on consumer credit.

Both decisions have been made immediately enforceable. The decision concerning Baltic Money is final, unlike the decision relating to Pomocna Pożyczka, which has been appealed against in court.

At the same time, UOKiK would like to remind consumers that in the case of a dispute with a financial institution, they may seek assistance of municipal or poviat consumer ombudsmen or non-governmental organizations – Consumer Federation, Association of Polish Consumers. Advice may also be obtained, free of charge, by calling the following telephone number: 800 007 707.

Read the press release in Polish.