13th Jul 2015 06:56
LONDON (Alliance News) - International Personal Finance PLC Monday warned there could be financial consequences as a result of potential legal changes in Poland that could result in a cap that covers a broader definition of non-interest costs than previously suggested.
International Personal Finance, which provides home credit and digital loans, said it is reviewing draft legislation as it works out whether the structure of its products will be affected by a cap that could affect all non-interest costs in connection with a consumer loan agreement, a change from previous proposals that involved a cap on all mandatory, non-interest costs.
The lender, which is integrating the MCB Finance digital consumer finance business it acquired in February with the online hapiloans business it launched in Poland in December 2014 to create IPF Digital, also has a home credit business in Poland.
International Personal Finance had previously developed a product to comply with the cap on all mandatory, non-interest costs charged for a consumer loan as part of the total cost of credit.
The company said it is now developing an "alternative product structure to mitigate any adverse financial impact to the greatest extent possible" in the event that all non-interest costs become subject to the cap.
"Dependent on legal interpretation of the final version, however, there can be no assurance that the legislation, if introduced in its present form, would not have some adverse financial impact on IPF," the company said in a statement.
By Samuel Agini; [email protected]; @samuelagini
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