Consumer credit regulation
We operate in most existing jurisdictions as the equivalent of a 'non-bank financial institution', under the local consumer credit laws which, in the European Union are based on the framework of the Consumer Credit Directive.
European Directive on Consumer Credit
The European Commission is currently consulting on its proposals to modernise the Directive. The proposals are designed to improve transparency on consumer credit products and allow easier comparison across the EU.
The EU Consumer Credit Directive is proceeding through its various legislative stages. We continue to monitor events and to actively lobby to ensure that home credit receives fair treatment in any eventual outcome.
Poland
The provision of consumer credit in Poland is subject to a number of consumer protection laws including the Consumer Credit Act, the Consumer Rights Protection Act and various Civil Code provisions. The Office of Competition and Consumer Protection is responsible for ensuring compliance with these laws by credit providers.
Romania
In Romania, Provident Financial qualifies as a Non-Banking Financial Institution ("NBFI") and is subject to licensing by the National Bank of Romania ("NBR"). NBFIs are registered, depending on the size of their business, in either General or Special Registry, and these Registries are administered by the NBR. The NBR monitors companies in the General Registry and it prudentially supervises those in the Special Registry. Provident Financial Romania has submitted its application file for registration into the General Registry and we estimate that the business will reach the Special Registry in June 2008.
Mexico
Provident Mexico operates as a Sociedad Anonima (S.A. de C.V.) which is a public limited liability company. It grants consumer credit and is required to comply with the relevant provisions of the general commercial law, the Commercial Code and the Federal Civil Code.
Czech Republic
Provident Financial s.r.o. operates as a consumer credit provider in the Czech Republic on the basis of a standard trade licence which is issued by a Trade Licensing Office. The provision of consumer credit is regulated primarily by the Consumer Credit Act and various Civil Code provisions. The Czech Commercial Inspectorate is responsible for ensuring compliance with these laws by credit providers.
Slovakia
Provident Financial s.r.o. operates as a consumer credit provider in Slovakia on the basis of a standard trade licence which is issued by a Trade Licensing Office. The provision of consumer credit is subject to a number of different consumer protection laws including the Consumer Credit Act, Consumer Protection Act, the Trading Act and various Civil Code provisions. The Slovak Trade Inspectorate is responsible for ensuring compliance with these laws by credit providers.
Hungary
Provident Hungary is licensed to provide consumer credit by the Hungarian Financial Supervisory Authority. The Financial Supervisory Authority regulates credit providers and undertakings in the financial services sector. In addition to licensing requirements, the provision of consumer credit in Hungary is subject to a number of different consumer protection laws including the Banking Act, the Consumer Protection Act and various Civil Code provisions.
Looking ahead
Regulation is likely to continue to increase over the coming years. We are continually working hard to ensure that we are prepared well in advance of likely changes so that we can effectively and efficiently manage regulatory compliance.