Administrative fine for pay day loan provider day that is beautiful

Administrative fine for pay day loan provider day that is beautiful

20 2014 Measure november

The fine was imposed because in the period of May 2012 up to and including August 2013 Beautiful Day offered payday loans without holding an AFM licence on 3 September 2014, the Netherlands Authority for the Financial Markets (AFM) imposed an administrative fine of €300,000 on Beautiful Day B.V. That comprises an infringement for 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 Day offered consumers the chance to borrow cash quickly against high expenses through the websites that are special. Breathtaking Day advertised that no expenses had been charged for the loan. In fact, consumers had to spend really costs that are high.


Breathtaking Day demanded an assurance to allow customers to be eligible for a a loan. Customers could just get that loan quickly should they decided on a paid guarantee from worldwide Credit and Debt Management Services Limited (GCDMS), that will be a celebration suggested by gorgeous Day. The expenses of a €250 loan for 25 times had been €55. This boils down to €803 on a basis that is annualreasonably 321.2 percents). GCDMS paid a substantial add up to stunning time of these solutions each month. The GCDMS guarantee consequently forms area of the breathtaking Day income model.

It is often unlawful since 25 May 2011 to provide spend loans without an AFM licence day. Gorgeous Day just isn’t exempted with this licence requirement.

Severe infringement

It involves an infringement that is serious. Stunning Day took advantageous asset of a small grouping of vulnerable customers who have been not able to sign up for an even more favourable loan in a regular way, as an example when you’re overdrawn on the payment account or making use of credit cards. This included the risk why these customers became increasingly further hidden in debt.


Providers of pay time loans need a licence if they charge significantly more than minor expenses. If that could be the instance they may not be permitted to charge prices that exceed the most statutory interest of 15 percents.

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

Quantity of the fine

A amount that is basic of pertains because of this kind of infringement. The fundamental amount can be increased or reduced based on whether or not the severity or period of this infringement or even the level of culpability give explanation to do this. The AFM considers it appropriate to increase the basic amount by 25 percents on the basis of the seriousness of the infringement and to increase it by 25 percents on the basis of culpability in the present case.

Whenever determining the fine, the AFM additionally takes under consideration the economic capability of this offender. In today’s instance, the economic capability of breathtaking Day constitutes the reason why setting the fine at €300,000.

Interested events can submit the AFM’s judgment included in the choice to your courts for review.

The AFM is devoted to advertising reasonable and clear markets that are financial.

As a market that is independent authority, we donate to a sustainable economic climate and success into the Netherlands.

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