Regulatory Alerts2025-01-21
Repayment Schedule Directive for Pawnshops, Finance and Leasing Companies
The Non-Bank Financial Institution Regulatory Authority directs pawnshops, finance, and leasing companies to issue standardized Repayment Schedules to borrowers prior to loan agreement execution. This mandate requires clear disclosure of the principal amount, interest rates, administrative fees, total cost of credit, and repayment period while capping default penalties at five percent of the outstanding principal per month. The directive also standardizes calculation methodologies and mandates the inclusion of insurance premiums in the schedule when applicable, addressing previous market inconsistencies and borrower complaints.
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