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The Central Bank determined that from January 2019 to June 2020, the Company entered into 586 car lease agreements, which are essentially consumer credit agreements and, therefore, are subject to the requirements of the Consumer Credit Law. and to the Regulation of Credit Evaluation and Responsible Loan of Credit to the Beneficiary.
According to the Bank of Lithuania, BRC Finance offered its customers to buy a car by dividing its price by installments over a period of time. In addition to the set price of the car, customers also paid additional taxes to the company.
“Basically, it is not a lease, but an installment purchase and sale. The provisions of the Consumer Credit Law should apply to such a transaction. BRC Finance has no right to provide installment sale services as it is not listed in Public list of consumer lenders, ”says the central bank.
After evaluating all the circumstances, the Bank of Lithuania allocated 80,000 LTL to the company. and ordered the cessation of illegal activities, that is, the cessation of consumer loans.
Violations of the Consumer Credit Law can result in a fine of up to 5%. the fine of the company can be up to twice the amount of the illicit rent, other profit or pecuniary damage.
