Administrative fine for pay day loan provider gorgeous time

Administrative fine for pay day loan provider gorgeous time

20 2014 Measure november

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 comprises an infringement for the Financial Supervision Act (part 2:60, first subsection, Wft).

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

(2) The The District Court of Rotterdam declared the objection had been unfounded.

Gorgeous time offered consumers the chance to borrow cash quickly against high costs through the websites that are special. Beautiful advertised that no costs were charged for the loan day. In fact, consumers needed to spend really costs that are high.


Stunning Day demanded an assurance to enable consumers to be eligible for that loan. Day consumers could only receive a loan quickly and easily if they opted for a paid guarantee from Global Credit and Debt Management Services Limited (GCDMS), which is a party recommended by Beautiful. The expense of a €250 loan for 25 times were €55. This precipitates to €803 on a yearly foundation (fairly 321.2 percents). GCDMS paid a substantial amount to breathtaking time for those solutions every month. The GCDMS guarantee consequently types area of the gorgeous Day income model.

It is often unlawful since 25 May 2011 to provide spend loans without an AFM licence day. Breathtaking is not exempted from this licence requirement day.

Severe infringement

It has to do with a serious infringement. Stunning Day took advantageous asset of a number of vulnerable customers who have been struggling to sign up for an even more loan that is favourable a regular way, as an example when you are overdrawn to their repayment account or through the use of a charge card. This included the chance that these consumers became increasingly further hidden with debt.


Providers of pay loans require a licence if they charge more than minor costs day. If that could be the situation they’re not permitted to charge prices that exceed the most statutory interest of 15 percents.

A licence provides extra security to customers. Ahead of the AFM funds a licence, it checks, inter alia, whether an organization complies using the demands of properness, expertise and integrity. More over, 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 great care in the supply of solutions to customers.

Number of the fine

A fundamental number of €2,000,000 relates with this kind of infringement. The amount that is basic be increased or reduced dependent on or perhaps a seriousness or extent associated with the infringement or perhaps the level of culpability give explanation to take action. The AFM considers it appropriate to increase the basic amount by 25 percents on the basis of the seriousness of the infringement and to increase it by 25 percents on the basis of culpability in the present case.

Whenever determining the fine, the AFM additionally takes under consideration the economic capability of this 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 towards the courts for review.

The AFM is devoted to marketing reasonable and clear markets that are financial.

Being a separate market conduct authority, we subscribe to a sustainable financial system and success into the Netherlands.