Within the very first half-year of 2016, the amount of payday advances awarded in Lithuania reduced by two thirds 12 months on 12 months, whereas the quantity lent to customers halved. Credit lenders assessed customer solvency more responsibly. When it comes to very first time in history, credits overdue reduced in number. Modifications are obvious. Active guidance, stricter demands associated with the Law on Consumer Credits that arrived into force at the beginning of the 12 months, and competition forced credit loan providers to fundamentally alter their approach and evaluate customer solvency more cautiously. Every one of these modifications relieve the loan that is overdue burden, that also mitigates the possibility of severe social repercussions,вЂ™ said Vitas Vasiliauskas, Chairman for the Board associated with Bank of Lithuania.
In the 1st half-year of 2016, the entire level of new pay day loans given, set alongside the previous half-year, paid down by 68.7 % вЂ” payday loans VT to 130 thousand; in identical duration, the quantity of payday advances provided reduced by half вЂ” to EUR 65 million, its cheapest value since 2013.
Credit lenders examined customer solvency so much more cautiously. When you look at the first-half 12 months of 2015, more or less 40 percent of candidates had been issued an online payday loan; 12 months on 12 months, the share of authorized applications contracted to 26 percent. Indebtedness of people younger than 25 declined by almost one fourth. In mid-2015, young individuals accounted for roughly 30 % of total clients of cash advance organizations; now their share will not even take into account 23 percent.