“No online loans” – an appeal under this title already has collected over 3500 signatures.?The initiator of your campaign is really an ordinary citizen Beka Mchedlishvili. He plans to bring a case about the online loan providers and demands the imposition ?of certain regulations restricting interest on loans and fines for overdue payments.
“We start to use improvement regulations. The ?loans mustn’t be provided to 18-year-olds who don’t work. Loans must only be issued to solvent persons. Overall, this industry is totally wild and uncontrolled,” he tells.
Currently, online lending business would not are categorized as any regulation typical for other segments on the financial sector. Online companies will not have a supervisory body which could control ?their activities.
On this basis, a non-governmental organization “Society and also the banks” also necessitates introduction of a wide variety of regulations, however the industry must not suffer caused by their imposition.
Now online loans will not be regulated, regardless that there’re engaged in financial activities. They are really governed by legislation around the enterprise activity, as well as example, regarding the fines, other product limits on the amount and might define any penalty. However, it must be noted that this practice is just like the entire world.
Especially when ?a significant part of the companies operating in our market ?are ?subsidiaries of foreign companies. Accordingly, their activities are fully in line with international standards,” the lawyer in the NGO David Kikvadze explains.
However, he believes the fact that sector is required to be regulated.
“Online credit companies make loans at such high interest and work on this type of large profit margin that this would be good to introduce regulations. Yet this have to be done this as not to harm the corporation. In Georgia, there are many than 10 online businesses, many employees work there, so the extra regulation mustn’t harm this company,” according to.