Administrative fine for cash advance provider gorgeous time

20 2014 Measure november

On 3 September 2014, the Netherlands Authority for the Financial Markets (AFM) imposed an administrative fine of €300,000 on stunning Day B.V. The fine ended up being imposed because into the amount of might 2012 up to and including August 2013 breathtaking Day offered pay day loans without holding an AFM licence. That constitutes an infringement regarding the Financial Supervision Act (part 2:60, very 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.

Stunning time offered consumers the chance to borrow funds quickly against high expenses through the unique sites. Stunning Day advertised that no expenses had been charged when it comes to loan. In reality, customers needed to spend really high expenses certainly.


Stunning Day demanded an assurance to help customers to be eligible for financing. 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 expenses of a €250 loan for 25 times had been €55. This precipitates to €803 on a yearly foundation (reasonably 321.2 percents). GCDMS paid an amount that is considerable breathtaking time of these solutions every month. The GCDMS guarantee consequently types an element of the Day revenue that is beautiful model.

It is often illegal since 25 May 2011 to provide spend day loans with no AFM licence. Gorgeous Day just isn’t exempted with this licence requirement.

Severe infringement

It has to do with an infringement that is serious. Gorgeous Day took advantageous asset of a team of susceptible customers who had been not able to sign up for an even more favourable loan in a regular way, for instance when you’re overdrawn to their repayment account or simply by using credit cards. This included the chance that these customers became increasingly further hidden with debt.


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

A licence provides protection that is additional customers. A licence, it checks, inter alia, whether a company complies with the requirements of properness, expertise and integrity before the AFM grants. More over, an ongoing business that holds a licence must conform to the alleged continuous guidelines of conduct. These guidelines concern, among other items, the responsibility to simply just take care that is great the supply of solutions to customers.

Number of the fine

A amount that is basic of pertains with this style of infringement. The amount that is basic be increased or reduced according to whether or not the severity or timeframe associated with infringement or perhaps the level of culpability give explanation to do this. In our instance, the AFM considers it appropriate to boost the fundamental quantity by 25 percents based on the severity for the infringement and also to increase it by 25 percents on such basis as culpability.

When determining the fine, the AFM also 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 towards the courts for review.

The AFM is devoted to marketing reasonable and clear economic markets.

As a market that is independent authority, we donate to a sustainable economic climate and success into the Netherlands.