Quick loans are cash loans that have been available in Latvia since 2007. Such lenders offer every adult Latvian citizen to borrow money through the Internet.
The purpose of fast credit is to help people who have sudden and short-term financial problems, such as an urgent and urgent need for a doctor, an accident or just a few days before salary, but their personal finances have already been spent. However, it is no secret that most companies now use these credits for other purposes, such as purchasing non-essential items, weekend entertainment and other things.
For many people, these types of loans have become an integral part of everyday life
In any situation where you need extra cash, individuals choose to get a quick loan. In this way, fast credit is quite an addiction that is out of control. Fast loans in themselves are very disadvantageous because they have a short repayment period and unless the person is using interest free or free credit, the amount of interest to pay on the additional loan is very high.
Of course, in the very early days of the advent of fast loans in Latvia and the regulations for obtaining and repaying them, many people used this opportunity virtually without any restrictions and often did not repay the loan. However, over time, the ABC, whose members comprise more than 70% of all lenders operating in Latvia, began to impose various restrictions. Also, since March 18, 2013, ABC has been offering people the opportunity to voluntarily apply for a loan cancellation.
Applying for a loan denial allows a person who realizes that he or she has become addicted to some kind of fast credit to voluntarily submit an application requesting that ABC members no longer grant him any cash loans for a specified period. This type of practice is already used in many places abroad; it allows regular borrowers to put themselves on a list drawn up by the ABC, which no longer provides loans to existing borrowers.
In addition, when applying for a credit cancellation, it is no longer irrevocable
If a person realizes that he / she is not able to control and manage his / her finances himself / herself, and thus often uses fast loans, then in order to avoid reckless borrowing in the future, only apply for a loan cancellation and
There are several ways to apply for a loan cancellation : electronically, by sending an application and a copy of your passport or power of attorney to the email address, or by submitting a personal appearance to the association. By submitting such an application, a person can choose for what period of time fast credit lenders who are members of the ABC no longer issue cash loans.
Minimum maturity is 1 year, currently maximum 3 years
While it is almost commonplace for people to take out fast loans, and to take loans on a frivolous basis, it may seem that those who depend on fast loans should also be able to opt for a longer period of time when they are not. However, the fact that this option is offered is already positive and means that something is being done to reduce the number of regular borrowers. It is possible that in the future such withdrawal will be extended.
Of course, for such an application to be made, it is up to the individual to understand that fast credit is not always the solution to financial problems. Many times, fast credit can further exacerbate a person’s financial difficulties.
Unfortunately, refusing a loan application does not mean that you can no longer get a quick cash loan anywhere
Although ABC members are the majority of all the lenders operating in Latvia, there are also non-ABC quick lenders. Consequently, if a person has applied for such a loan cancellation, despite all the good will to avoid fast credit, one can still get such a cash loan. Of course, if there is an emergency for which such loans are primarily meant, then it is good that not all lenders are aware of such a loan waiver application.
In an unexpected and urgent situation, where you really need a quick credit but an application for a credit waiver has already been submitted, other non-LKNA lenders may be the only bailout if there is no other option to borrow. However, if a person borrows just because they only need to buy a newer smartphone, the fact that not all lenders are aware of a loan cancellation application is a barrier to really getting rid of regular fast loans.
To apply for a credit denial, a person needs to fill out an application and submit a copy of their passport or power of attorney . If a person submits a copy of the passport, it must be written on the passport that it is a copy for submission to the Latvian Association of Non-bank Lenders.
If a power of attorney is submitted, it must be clearly stated that it is valid and has not been revoked
The loan cancellation application is processed within 10 days from the date it was submitted to the ABC. After that, a person will no longer be able to receive instant cash loans from all or the ABC members specified in the application for the period specified by the applicant himself.