Regarding the fine imposed by the Bank of Lithuania
2019-12-30 NEO Finance, AB (code 303225546, address Verkių st. 25C-1, Vilnius, hereinafter - the Company) received the notice that the Director of the Supervision Service of the Bank of Lithuania 2019-12-20 imposed a fine of 4500 EUR (four thousands five hundreds euro) on the Company pursuant to violations of Art 4.1 and 4.2 of the Law on Consumer Credit of the Republic of Lithuania (hereinafter - the Law):
- The standard information provided on typical example shown on consumer credit advertisement video on “TVPlay” channel was displayed too short.
- Two consumer credit advertisements uploaded on “Facebook” did not include typical examples.
- The company web site provided a consumer credit calculator, however in order to see standard information provided on typical example, the client had to take a few extra steps or scroll down a web page, additionally this information was provided in smaller font.
Since 2012, when the Bank of Lithuania commenced supervision of consumer credit providers, no sanctions were imposed on the Company. The Bank of Lithuania did not establish any aggravating circumstances, but established a mitigating circumstance - the Company acknowledged violations and terminated inappropriate advertising.
The fine imposed will not affect the Company's results of operations or financial condition.
“We have changed our internal processes to prevent human error in advertising on social networks in the future. We will also make internal rules on how long and in what format to publish a typical example in the future, as the law does not specify, for example, how many seconds a typical example should be shown in an advertisement - this practice is shaped by the market. We will make every effort to ensure that our marketing activities comply with the law,” says Justinas Kodžius, Chief Marketing Officer, NEO Finance, AB.
Head of Administration