New rules for loan sharks
WILLEMSTAD - The Central Bank of Curaçao and Sint Maarten have set new rules for the so-called loan sharks, which will enter into force on May 1 of this year. Loan sharks are individuals who often offer small loans with ridiculously high interest rates to risky customers, often poor people.
The Central Bank has done this at the request of the Consumers’ Foundation or the FPK.
The new regulations state specifically that the lender should not obligate the client to take out an insurance with a particular insurer. Furthermore, there are stringent requirements regarding the provision of information to clients. As of January 1, 2016 in addition there will be maximum rates determined by the Central Bank.