The non-bank credit industry in Latvia accounts for more than 200 million loan portfolios, and the largest companies in the industry earn several million euros a year, so there is a high probability that the industry will also be faced with various fraud cases, both from its own creditor and from its customers. And then we will also list some of these fraud cases today so you can distinguish them and not let yourself be used.
One of the most recent fraudulent events in the non-banking sector is illegal, or unlicensed, lenders who issue credits without a CRPC license and usually offer very bad credit terms to their customers. There is not a lot of such a company in Latvia, but definitely, before taking money from a non-bank creditor, check whether this lender has received a consumer crediting permit, as well as whether this permit has been renewed.
One of the scams used by deceptive debtors is to take a new loan to repay the old loan and do so several times, taking time off and ultimately not paying back those loans. Since there are dozens of non-bank creditors in Latvia, in theory such activities are not prohibited by law, but they are very impractical, and creditors categorically understand to their customers that such actions are not correct and should not be used.
Incorrect Data Entry
If you want to get credit from fast credit providers, you will most likely need to enter different data about yourself, other similar data in your workplace that the creditor takes into account when assessing your solvency. But, people have discovered that these input fields can enter inaccurate data and thus allow creditors to issue these loans, and the most widespread fraud is precisely the amount of wages that customers often “embellish”.
A more serious offense is to take credit for a foreign person’s name, and such cases are also heard where people steal personal data to their acquaintances or friends and then receive these quick credits arbitrarily with these data. Such a violation is already punishable by imprisonment, and so mass media often also pay close attention to such cases of fraud.
Hiding creditors from information about loans and their terms is also a fraud case where the customer does not receive all the necessary information and thus makes an unconscious credit. In Latvia, some of these non-bank creditors deliberately do not display all the necessary data on their website, so that they are not visible to customers, and only after receiving the loan the customer gets in shock, at an interest rate, penalty interest or other data that was initially hidden.
And the last kind of fraud is also the advertising campaigns made by creditors, where people are deceived to take credit only to get some prize or gift. This practice was very popular a few years ago, when the largest non-bank creditors made such ads almost daily and thus affected people more and more.
Not all of these fraud cases are punishable by law and some are simply morally wrong, so everyone has to think about what he does and look at the lender’s reputation before receiving the service.