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 ("CCD").

European Directive on Consumer Credit

A new CCD was adopted by the European Commission in May 2008. The deadline for transposition into national law is June 2010 and existing legislation in our European markets has been / will be amended or replaced to implement the new directive. The new CCD takes high level of harmonisation approach and is intended to harmonise key aspects of consumer credit legislation in Member States as part of the objective of creating a common credit market across the European Union. The aim is to create a largely consistent legislative position across Europe and, at the same time, the directive is also intended to maintain high levels of consumer protection.

Poland

The provision of consumer credit in Poland is governed primarily by the Consumer Credit 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

The Romanian subsidiary qualifies as a Non-Banking Financial Institution ("NBFI") and is subject to registration and monitoring 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 is registered in the General Registry. 

Mexico

Provident Mexico operates as a Sociedad Anonima (S.A. de C.V.) which is a limited liability company. It is classified as a financial institution and is not subject to the supervision of the National Banking Commission and does not require any permits or licences to conduct its business. However it is subject to the Law for the Transparency and Order of Financial Services and to Federal consumer protection laws, both of which are policed by the Federal Consumer Protection Agency. 

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 and is not subject to any special regulation applicable to financial institutions. 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.