Responsible borrowing

Responsible borrowing
Consumer Rights Protection Centre is a Latvian non-banking lender supervision institution. It is often mentioned that the state, including the CRPC, by preparing various normative acts and performing supervision, fight the industry, want to destroy it, but we want to accent that such view is wrong. We want to see a strong and honest industry, because we cannot deny that consumers need crediting services.

It is important for us that consumer, who needs credit, chooses such loan that he can repay and that is adapted to needs of a specific person. For example, if consumer regularly receives wages and can afford to use no more than 50 euro a month to repay the credit, ten, in order to purchase a refrigerator for 300 euro, quick credit for 7-30 days, where all received money must be repaid in one payment, will not be probably suitable for him.


Besides, it is important that consumers choose the credit just like daily goods – looking for as favourable and cheap offer as possible. In Latvia, we often observe that, in purchasing daily goods, consumers follow prices very carefully, choosing the cheapest goods or making purchase with discounts. However, it is exactly opposite with taking the loan – consumers do not give sufficient attention to credit costs. Therefore, Consumer Rights Protection Centre invites consumers to borrow responsibly! Only borrow from licensed lenders! Database of licensed lenders can be found at the CRPC website: www.ptac.gov.lv . Always read the contract carefully before signing! Ask to take the credit contract project with you and read it carefully. Compare costs of different credit possibilities! Credit costs can be very different, depending on the lender and the credit type. In order to compare offers of various lenders, request and evaluate the following information:
all fees to be paid in relation to the credit,
annual interest rate (AIR) – this way, it is possible to compare expensiveness of various credit offers most accurately, because it includes all credit costs – interest and other fees,
study offered payment schedules and terms,
offered interest rate type – variable or fixed,

necessary insurance or other additional services,

  • additional costs in case of early repayment,
  • what happens if payment is delayed,
  • what is the total credit amount to be repaid,
  • whether lender requires a guarantee.


Compare different possibilities and choose the most suitable credit (think especially about total costs and repayment schedule). If you face problems with repayment of the credit, it is important to talk to the lender! Majority of lenders will offer a solution – extension of the total term and decrease of monthly payments, credit vacation or other measures. Provide the lender with true information about what monthly payments you can afford!