Administrative fine for cash advance provider day that is beautiful

Administrative fine for cash advance provider day that is beautiful

20 November 2014 Measure

The fine was imposed because in the period of May 2012 up to and including August 2013 Beautiful Day offered payday loans without holding an AFM licence on 3 September 2014, the Netherlands Authority for the Financial Markets (AFM) imposed an administrative fine of €300,000 on Beautiful Day B.V. That constitutes an infringement of this Financial Supervision Act (part 2:60, very first subsection, Wft).

(1) The AFM has declared the objection unfounded, while supplementing its reasons.

(2) The The District Court of Rotterdam declared the objection ended up being unfounded.

Stunning time offered consumers the chance to borrow cash quickly against high expenses through the unique internet sites. Stunning Day advertised that no expenses had been charged for the loan. In reality, customers had to spend really costs that are high.


Breathtaking demanded a guarantee in order for consumers to qualify for a loan day. Customers could just get that loan easily and quickly should they decided on a compensated guarantee from worldwide Credit and Debt Management Services Limited (GCDMS), that is an event recommended by gorgeous Day. The expense of a €250 loan for 25 times had been €55. This boils down to €803 on a yearly foundation (fairly 321.2 percents). GCDMS paid an amount that is considerable stunning time of these solutions every month. The GCDMS guarantee consequently types area of the Day revenue that is beautiful model.

It was illegal since 25 May 2011 to provide spend loans without an AFM licence day. Stunning is not exempted from this licence requirement day.

Severe infringement

It involves a severe infringement. Breathtaking Day took advantageous asset of a band of vulnerable customers who have been not able to payday loans Georgia take out an even more loan that is favourable a regular way, as an example when you’re overdrawn to their repayment account or making use of a charge card. This included the chance why these customers became increasingly further hidden with debt.


Providers of pay time loans need a licence when they charge significantly more than minor expenses. If it is the situation they may not be permitted to charge prices that exceed the most statutory interest of 15 percents.

A licence provides extra security to consumers. Ahead of the AFM funds a licence, it checks, inter alia, whether an organization complies using the demands of properness, expertise and integrity. Furthermore, an ongoing business that holds a licence must conform to the alleged constant guidelines of conduct. These rules concern, on top of other things, the responsibility to simply just take care that is great the provision of solutions to customers.

Quantity of the fine

A fundamental quantity of €2,000,000 pertains because of this form of infringement. The fundamental quantity can be increased or reduced according to perhaps the severity or timeframe of this infringement or the level of culpability give explanation to take action. In our instance, the AFM considers it appropriate to boost the essential quantity by 25 percents in line with the severity for the infringement also to increase it by 25 percents on such basis as culpability.

Whenever determining the fine, the AFM additionally takes under consideration the capacity that is financial of offender. The financial capacity of Beautiful Day constitutes the reason to set the fine at €300,000 in the present case.

Interested events can submit the AFM’s judgment within the choice to the courts for review.

The AFM is focused on marketing reasonable and clear monetary areas.

As a market that is independent authority, we subscribe to a sustainable financial system and success into the Netherlands.

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