Payday Loan Actively Cleans The Microloan Market

Since the beginning of 2016, more than 200 microfinance organizations have been excluded from the register. This happens because of non-compliance with the law, which, it should be noted, is changing and supplementing rather quickly. The BCA Bank has been active in regulating microfinance organizations lately. New laws are being issued to tighten this control, and appropriate penalties are imposed on those who for some reason fail to comply with the requirements of the law.


Reasons behind its cleaning

The main reasons for excluding organizations from the register include the following: there is no fact of providing the required documents, such as information about the staff of managers, reports on microfinance activity for the specified period. There are also cases of delisting due to the absence of the term “microfinance organization” in the company name.

The majority of those excluded from the register personally wrote applications for the failure of microcredit organizations.The plans of the UI Finance not to stop the cleaning of unscrupulous Payday Loans. Next year, all organizations that do not meet the requirements of the BCA Bank will leave the register of microfinance companies even more rapidly. In addition to violators, firms that provide zero tax reporting will be automatically excluded from the registry. According to the regulator, if the company has not issued a single loan, then it’s not in the register of organizations that issue loans to them. 
All Payday Loans, if of course they wish to be present on the market legally, must disclose information on loans and publish it on their sites on the Internet. In the case of not providing such data to potential customers, the company will fall under the sanctions.

Reasons behind its cleaning

Moreover, as it was written in the news “The BCA Bank of the Russian Federation for toughening fines for malicious Payday Loans violators,” the BCA Bank actively promotes the next amendments to the law, which will be heavily penalized by illegal organizations involved in issuing loans. In addition to this, it is a question of prohibiting companies that are not in the registry from collecting debts to the debtor through the courts.

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