bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Sunday 23.04.2017 | Name days: Jurģis, Juris, Georgs
LatviaLatvia

New tool for measuring a person’s credit worthiness is introduced in Latvia

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUCredit rating is a new tool employed by Citadele Bank to help residents measure their credit worthiness online. Using credit ratings is a common practice around the world. Latvian Commercial Banks Association and Consumer Protection Centre believe this new tool will improve residents’ understanding of their credit worthiness and interest rates of consumer loans.

By introducing the credit rating option and based on the issue of funding, Citadele thereby refuses use of a unified interest rate for consumer loans. Instead residents are offered the option to receive a fairer, individual offer in which the interest rate is based on the financial discipline of each individual consumer.

«The credit rating is formed based on an evaluation and summation of multiple criteria. Having no delays in loan payments, regular and official income and having no major outstanding debts are the main criteria based on which a person can be offered better interest rates on loans,» – notes Citadele Bank’s board member Santa Purgaile.

She notes that age will positively affect a person’s credit rating. For example, loan takers who are 36 or older are usually more responsible than younger people. «Being aware of the most important criteria, a person can improve his or her loan and pay less in interest. When establishing the credit rating, the bank looks at a person’s account and payment history. If a person had debts in the past (paid two years ago), his or her credit rating will be better in comparison to a person who is currently in debt. This new method will improve transparency and fairness towards all consumers, each client will have the right to find out his or her credit rating without undergoing complicated procedures and formalities,» – said Purgaile.

During a press-conference, Latvian Commercial Banks Association’s President Martins Bicevskis admitted that the new approach will enhance residents’ understanding of the criteria used to measure each individual’s credit rating.

«The new tool will help demonstrate that timely payments are closely associated with proper planning of finances and help households to spend more money on planned purchases, not payment of big interest rates. It will help promote more responsible attitude towards payment discipline, which will benefit both consumers and the bank,» – Bicevskis said.

He notes that ever since 2013 consumer loan portfolio in Latvia’s banks has stabilized at approximately half a billion euros threshold. Since then, the loan portfolio has been growing annually by several million euros. Data for the first half-year of 2016 shows that the portfolio of consumer loans and payment cards in banks has reached EUR 509,899. «This proves that residents are interested in consumer loans. It is highly important that consumers can properly manoeuvre among the many loan offers and make responsible decisions,» – Bicevskis added.

Sanita Gertmane, head of Consumer Rights Protection Centre’s Consumer Information and Communication Department, admits that the number of complaints about banking services tends to reduce. PTAC believes that Citadele’s new credit worthiness measurement tool, which was adopted in consideration of recommendations provided by PTAC, the general level of residents’ comprehension of financial services will continue to increase and the number of complaints will continue to decline. «Data in regards to complaints shows that the level of regulation of financial services has improved. We support efforts aimed at enhancing residents’ general understanding of financial services. It is important that loan takers and loan providers take loan services seriously,» – said Gertmane.

It is possible to determine one’s credit worthiness without registration here.

Ref: 103.109.109.5982


Leave a reply

Week in Lithuania. Imports from Belarus' Astravyets NPP restricted

Seimas on Thursday, April 20, adopted a bill to restrict electricity imports from the Astravyets nuclear power plant under construction in Belarus and other unsafe nuclear facilities in third countries.

Wider economic cooperation between Latvia and Singapore planned

As reported by Finance Ministry, work will be performed to establish wider economic cooperation between Latvia and Singapore, both in the field of tax administration and investments.

Lange: poor road quality causes drivers to lose more than one billion euros every year

Poor road quality in Latvia causes losses for drivers worth more than one billion euros every year, announced Janis Lange, chairman of Latvijas valsts ceļi, at an annual conference on Friday, 21 April.

Latvia and Lithuania continue work on single gas market’s development plan

Latvia and Lithuania continue working on single gas market development plan, BNN was told by Latvian Economy Ministry.

Belarus values Latvia’s experience developing e-management

Belarus values Latvia’s positive experience in development of e-management. Constructive cooperation in this field has provided residents in Latvia and Belarus with cheaper roaming tariffs and improved mobile broadband development, as reported by Environment Protection and Regional Development Ministry.

Poor skills in digital technologies can reduce one’s competitiveness on the market

Only 2% of board members in Latvia’s leading retail trade companies have skills working with digital technologies. The same applies to 6% of board members in transport and logistics companies, 4% - in energy companies and 0% in manufacturing companies, according to results of a study performed by personnel selection company Amrop.

Government decides not to support Ventspils’ involvement in Nord Stream 2

This week, Latvian government decided behind closed doors not to support the involvement of Ventspils Freeport in the Nord Stream 2 project, according to publicly available information.

Estonia to invest millions in IT and technology business development in regions

Close to 160 million euros are planned to be invested in developing the sector of information and communications technologies in Estonia outside larger cities, according to a state budget strategy for 2018-2021 by the Estonian government.

Bite buys Unistars and gains access to 5G frequency

Mobile communications operator Bite has bought telecommunications company Unistars, making a major step towards introducing 5G network in Latvia, as reported by Bite manager Kaspars Buls.

Study: Latvian businessmen feel threatened the most by increasing tax burden

Nearly all Latvian CEOs expect competition to grow in the future. In addition, this will happen in conditions of deficit of qualified workers, according to results of a study performed by PricewaterhouseCoopers.

Court in Russia bans Jehovah's Witnesses as extremist organisation

The Supreme Court of Russia has accepted a request by the country’s Justice Ministry to term Jehovah's Witnesses as an outlawed religious organisation - best known for going door-to-door looking for new converts -, considering it to be an extremist group.

Progress in the realization of insolvency reform in Latvia

New regulations listed in the Insolvency Law provide for increasing the role of creditors in the choice of figures supervising legal protection processes, as well as enhancing the work of administrators in supervisory institutions – expanding the capacity and authority of the Insolvency Administration in performance of supervisory functions and raising qualifications of employed administrators, as reported by Justice Ministry.

Demand for Barbie considerably down in Europe and North America

The overall sales of Barbie dolls have fallen 13%, world's largest toy company, American manufacturer Mattel has stated.

Weather in Latvia to be windy and rainy for the next couple of days

The end of this week and beginning of the next will be windy and rainy in Latvia, as reported by the State Environment, Geology and Meteorology Centre.

Lithuanian MPs deal with smut resolvedly, but is it sign of parliamentarian transparency?

If the Lithuanian lawmakers’ adhering to law and ethics was to be judged by the events from the last couple of weeks, one could conjure up an impression that the Lithuanian legislature is one of the most transparent around – and a whole lot such than the previous parliamentary term.

Riga International Airport will have a new air traffic control tower

Latvijas Gaisa Satiksme promises that Riga International Airport will have a new, modern air traffic control tower in 2013.

Lembergs will fight for his «warm seat» in the mayor’s office

Aivars Lembergs intends to participate in upcoming municipal elections in Ventspils as a mayoral candidate from his party – For Latvia and Ventspils.

Latvia’s financed loan volume increased by 72 million euros in Q1

In Q1 2017, loans worth more than EUR 94 million were issued through Latvian loan platforms, according to data compiled by Latvian Association of Alternative Financial Services.

Number of passengers carried by airBaltic grows 12%

Latvian national airBaltic airline carried 224,921 passengers to destinations in Europe, Scandinavia, Russia, CIS and the Middle East in March. This means a 12% increase in comparison with last year, BNN was told by the airline.

Birth rates in Latvia 6.9% behind previous year

Compared to the same period one year ago, 365 children fewer were born in Latvia in Q1 2017, which means a drop of 6.9 %.

Study: Latvia has become one of the centres for Russian organized crime

Russian organized crime groups, which often have ties to Kremlin, have varied their activities in Europe, including Latvia. This is why European institutions should consider them more of a security, not crime problem, as concluded in a study by British researcher Mark Galeotti* published by European Council on Foreign Relations.

Estonian state securities’ fund increases profits to 1.2 million euros

The gross revenue of the Estonian state securities and business support fund Kredex grew 16% reaching 7.1 million euros last year, while profits rose to 1.2 million euros, which is a 20% increase.

New CEO of Riga Freeport to have a major wage increase

Riga Freeport authority plans to announce a personnel selection process to find a new CEO for the Freeport, said Mareks Gailitis, advisor to chairman of the board of Riga Freeport Andris Ameriks.

20 asylum seekers resettled from Greece to Latvia

As part of the European Union’s resettlement programme, twenty people were relocated from Greece to Latvia on Wednesday, 19 April. Ten of those people are children, as reported by Office for Citizenship and Migration Affairs.

Estonia to impose banks with 14% advance income tax

Amending the Estonian income tax system, the country’s government has decided to push for a 14-percent advance income tax on banking institutions’ profits.

Newest comments