Given the in-depth knowledge of drill. experts in the field of FinTech and Banking & Finance, we provide our clients with the highest level of advice on compliance with consumer protection requirements in respect of various financial services.
We provide legal advice in matters related to unfair commercial practices, resolve situations with unfair contract terms, as well as represent clients both in the licensing process arranged by the Consumer Rights Protection Centre (including obtaining of a licence for consumer lending and credit intermediary activities) and in initiated inspection matters under administrative proceedings.
Our Consumer rights team has gained considerable distinction and recognition in the field of consumer lending – we have been involved in the licensing processes of 4 consumer lending companies and 2 credit intermediaries.
The Alternative Financial Services Association of Latvia entrusted Ramona Miglāne, the head of our Consumer rights practice group, with the great privilege to lead the development of the Guidelines for the Crowdfunding Industry in Latvia. The aim of the Guidelines is to create a sustainable and transparent crowdfunding industry in Latvia.
The Alternative Financial Services Association of Latvia unites financial technology or FinTech companies, as well as other companies operating outside the banking sector and providing financial services to the residents of Latvia and other EU Member States.
The Guidelines cover issues such as the protection of platform users’ assets, corporate governance, access to information and customer information, advertising practices, measures to prevent conflicts of interest and data protection, as well as a number of other principles.
Please see the text of the Guidelines here:
https://www.lafpa.lv/content/uploads/2020/05/LAFPA_guidelines_crowdfunding_ENG-1.pdf
Based on our significant experience in advising non-bank creditors and the recent rapid development of the industry, our Consumer rights practice group had the opportunity to help establish a new leasing company, AS Loango.
Legal services included obtaining of a special consumer credit permit (licence) at the Consumer Rights Protection Centre (CRPC), preparation and negotiation of standard contract terms, internal credit issuance, solvency assessment, debt collection, consumer complaint handling and data processing procedures with the CRPC.
Our Consumer rights team was involved in the implementation of the first rent-to-own financial services project in Latvia. Legal services included advising on the establishment of a legal form and service structure, drafting a standard contract, advising on debt collection issues, and drafting corporate governance rules.
Our experts also successfully represented the client in the case of the Consumer Rights Protection Centre (CRPC) regarding the application of consumer credit (especially operational leasing) regulations to the services provided by our client, which could have a significant negative impact on the client’s future operations. While implementing the strategy developed by our experts, the CRPC closed the inspection case against our client.
In 2013, the Ministry of Economics launched a campaign against non-bank lending, which seriously threatened the continued existence of non-bank lenders in the Latvian market. Our team of experts was actively involved in the assessment of the relevant restrictions and represented the interests of clients, preparing substantiated objections to the implementation of the restrictions. As a result, most of the restrictions were not introduced, allowing non-bank lenders to continue to provide their services in Latvia.