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Thursday, October 21, 2021

Anti-usury Act. The government is working on regulations on consumer loans

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The Ministry of Justice is working on a draft of anti-usury regulations – Deputy Minister of Justice Michał Woś told the Polish Press Agency. – The bill was entered into the government’s work plan. This gives the ministry a “green light” to the next legislative steps and actions so that this project can be adopted as soon as possible – he said.

The deputy minister recalled “the main assumptions of the anti-usury act have already been included in the so-called covid acts.” – They are already in force, they are the law in force. The warnings of those who criticized these regulations, speaking of a total collapse of the market, did not come true, Woś said in an interview with PAP.

Anti-usury Act

– As the Ministry of Justice, we believe that it is absolutely necessary to defend and protect the weakest – those who become victims of moneylenders. Therefore, these “covid” solutions, which are now temporary, should become binding law – assessed the deputy minister.

It informed that, therefore, an entry has already been obtained in the Government Work List for such changes. – This gives MS a “green light” to the next legislative steps so that this bill can be adopted by the government as soon as possible, then by the parliament and becomes a binding law – said the deputy minister.

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– This act in a slightly broader scope, but very similar to the solutions of the covid act, will now be the subject of very intensive work by the government as part of the legislative process. As MS, we would like this bill to be adopted as soon as possible, in order to replace these provisions of the temporary act with a permanent, unambiguous regulation that protects the weakest and potential victims of moneylenders – Woś emphasized.

The deputy minister recalled that the main assumption relating to anti-usury issues contained in the “covid” regulations is to “define the maximum interest and non-interest costs and reduce these costs”.

– However, it will be possible to talk about detailed solutions when the draft becomes the subject of consultations – said Woś, referring to the proposals to introduce permanent regulations in this matter.

Solution from the covid act

In the spring of 2020, as part of the preparation of regulations related to the coronavirus pandemic, the Ministry of Justice indicated that “the need to take loans in a pandemic situation may be an opportunity for various types of frauds and scammers who want to extort additional debts and seize real estate.”

– The regulations will clearly define which loans are usury and you will be imprisoned for breaking the law. They will end the principle that made the prosecution of the usurer dependent on whether he knew that the person taking the loan was “in a forced position”, i.e. in a difficult life situation and dramatically needed money to provide himself with basic living conditions, such as food, medicines, payment of bills. This discretion of the law has so far been the cause of impunity for moneylenders – noted in April last year. ministry on the occasion of those changes. At that time, the possibility of submitting applications for real estate auctions was also limited.

The draft law prepared by the Ministry of Justice, intended – in the government’s intention – to effectively combat pathological usury loans, was also submitted to the Parliament of the last term of office. As announced, the change was to comprehensively solve this problem by introducing a clear, permanent limit of non-interest costs. At that time, however, the work on these proposals was not completed due to the end of the parliamentary term.

Main photo source: tvn24



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