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General EUR P2x Discussion
BulkEstate
Mar 17, 2017 10:34:29 GMT
via mobile
Post by lawyer on Mar 17, 2017 10:34:29 GMT
Looks like this company violates the Latvian law. They must be licensed as a credit intermediary company.
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Post by lawyer on Mar 14, 2017 12:41:18 GMT
lawyer, what impact would you expect that to have on the platforms already in operation? I have seen the draft law, it already exists. The platforms will go under the jurisdiction of banking regulator. Equity requirements equal to almost 500 thousand euros. There are also requirements on AML and compliance, as well as standard requirements on reputational risks of the board members. And a guarantee fund in the amount of 1% of the turnover should be provided after the turnover exceeds the equity of the Platform. In addition, the Platforms will be required to hold 10% share of the investment. The requirements are strict, and I think that all small new Platforms will go under other jurisdictions. Viventor and Twino should get licensed. I guess that Mintos will begin to prove that the regulation is not binding to them and to threat with litigation, as they used to do. After licensing, the state will begin to interfere rigidly in the work of the Platforms (this is Latvia, where the officials are not really adequate) and will begin to regulate the rates for personal loans and the volume of their offer. Latvia has very big complaints to the Platforms in terms of supply of loans falling under the licenses of the Consumer Protection Society. Their credit companies can be licensed in two ways: the first one is banking regulator, the second one is consumer lending (Consumer Protection Society), but for the latter you can adjust both auto loan and mortgage as well. The Platform Partners usually operate under the second type of license. There are complaints in particular regarding the sales of claim assignments by the companies, operating under the second type of license in Latvia. And after licensing of the Platforms, the Regulator will be able to start to dictate the terms to the Platforms.
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Post by lawyer on Mar 13, 2017 12:06:47 GMT
Just a question out of curiosity though: why the platform is based in Latvia? AFAIK, they are not issuing any loans or having any other business in Latvia. As a matter of fact, in the last couple of years there are many p2p lending platforms based in Latvia, is a particular reason for it? Don't get me wrong, (for some inexplicable reason) i have always loved Latvia, it is just that i don't understand how it has suddenly evolved into the Mecca of p2p lending.[/quote]
In principle, Wiseclerk is right. In Latvia, there is no clear regulation of P2P lending. The law is under development and will appear in 2017. At the moment, the Platforms are subject to a set of other regulations that the Platforms easily circumvent.
In general, legislation in Latvia is unbalanced. The "Regulator" can not influence the Platform itself at the stage of sale of debt, but it can influence the Loan Initiator, if it is under Latvian jurisdiction. The Regulator periodically prohibits Latvian Credit companies, dealing with personal loans, from selling claim assignments to individuals. In principle, the transactions of sale of consumer loans to individuals involve violation of Latvian law. Therefore, the Platforms mainly sell assignment of claims for loans, issued outside of Latvia, or loans to legal entities. In this case, the Latvian Regulator can not influence the Platforms. During 2017, order will be established 100%. The law on credit intermediation has already been adopted. So the state understands that order should be imposed.
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Post by lawyer on Feb 24, 2017 10:16:24 GMT
They really need to work on support hours ! 5-10AM GMT 😂 For me it is not a problem, if I will see deposit during a day after. But I need a guarantee of my investment safety. And I need an understanding how I will get my money back if something happens with LO. And here I see some problem
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Post by lawyer on Feb 24, 2017 9:28:22 GMT
I decided to try out this new platform and verification was quickly completed.  I have had to accept 2 t & c changes which mean a lot of reading, it would have helped if the actual changes were listed as I didn't spot them. I did a trial cash transfer yesterday morning which other platforms would have credited to my account in mid afternoon, but so far after 24 hrs there s no sign of a deposit to my account. Specific of Latvian banks
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Post by lawyer on Feb 23, 2017 16:27:59 GMT
Will be great if Robocash try to explain some questions: If you fail to fulfill BuyBack guarantee, just imagine, shall I go to Russia with my claim for adjudgment?
Does Russia recognize the writ obligatory, issued in Latvia? (I will answer for you - no!)
Has a credit company from Russia (acting under the license of MFO (micro financial organizations) a right to assign the claim to an individual?
When a claim is assigned and thus appears to be beyond the supervision of MFO Act, is there a prejudice of borrower's rights in terms of supervision of the observance of his rights? This is violation of legal acts of Russia, isn’t it? Is then the writ obligatory issued, violating the law? By the way, there is the same problem with loans in Spain.
Selling claim assignment with restricted conditions (in terms of getting interest), do you exclude from the claim the penalty, calculated for the original loan? Are the borrower’s payments counted towards interest redemption first? Can penalty increase the amount of debt by 100% of the original loan principal?
Then what happens if you sold me 95% of the debt, but I have a claim, limited to claim assignment conditions, and it does not include penalty? All penalties are directed to you and have precedence over my claim in debt collection. You mount an action against the borrower before I do (as you are still holding a part of claim) and collect the amount, equal to the loan principal, in the form of penalties. And here I am with my claim at the moment when everything that could have been collected from the borrower is already done. What are my chances to recover the debt, taking in consideration the aforementioned difficulties?
Otherwise : 16% is a good deal.
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Post by lawyer on Feb 18, 2017 15:29:00 GMT
I am a UK based account holder currently investing with 4 Euro sites. To fund these accounts I opened a TransferWise account and use that to send funds. This works satisfactorily and incurs a transaction charge. The transfer is pretty quick with next day Euro account credits. To date I have not tried any withdrawals so cannot comment. Of course this does cause an additional cost that I must overcome in addition to currency fluctuation.
I should also add that for each platform I had to send funds direct from my UK sterling based account and that was expensive. I would like to get around this expense.
My questions are:-
How do you do it?
Are there better methods for UK based investors, particularly the ability to hold some form of Euro account?
Is it possible to set up a system whereby I can withdraw from one platform and send those funds to a different Euro platform (staying in Euros and saving transaction costs)?
How to avoid the initial expense of sending funds from the UK to Europe?
Thanks in advance.
Paul
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