On 29 October 2009, the Netherlands Authority for the Financial Markets (AFM) imposed two administrative fines of € 1,000 on Afab. The AFM imposed the administrative fines on Afab, as licence holder, in connection with a violation by Hollandsche Disconto Voorschotbank B.V. (HDV), a company affiliated with Afab. The AFM carried out an investigation on loans provided by HDV in the period of 1 July to 5 December 2008. HDV did not obtain sufficient information on the consumer's financial position and used the information it did obtain insufficiently in its assessment of whether the provision of consumer credit was responsible in relation to the prevention of the provision of excessive loans. Irresponsible loans, from the perspective of excessive loans, were also provided.
This means that HDV violated Article 4:34, first paragraph, of the Financial Supervision Act (Wft). These Articles oblige a provider of consumer credit to obtain information, to prevent the provision of excessive loans, on the consumer’s financial position and to assess whether the conclusion of the agreement is responsible in the interest of the consumer. If, with a view to the prevention of the provision of excessive loans, the conclusion of the credit agreement is irresponsible, the provider is obliged not to enter into the credit agreement.
In 9 of the 26 investigated files, HDV failed to obtain sufficient information on the consumer's financial position and used the information it did obtain insufficiently in its assessment of whether the provision of consumer credit was responsible, with a view to the prevention of excessive loans being provided to the consumer. In 9 files, HDV furthermore provided consumer credit to consumers, which loans are irresponsible from the perspective of the prevention of the provision of excessive loans.
On 29 October 2009, the AFM imposed a total of three administrative fines on Afab within the context of the 'Responsible provision of consumer credit' investigation. One of these three fines was published shortly after it was announced to Afab (6 November 2009). Filing an objection or appeal against any of the three fines is no longer possible. The two other fines are therefore published at this time as well. The fines for the violations by HDV have been imposed pursuant to the Decree on Penalties under the Wft. This Decree applies to violations that occurred or commenced prior to 1 August 2009. The amount of the fine for HDV's violations has been maximised in the Decree on Penalties under the Wft at € 1,000 per fine.
Interested parties may submit the AFM's decision to the court for evaluation. If you have any questions or comments you can contact the Financial Markets Information Line on: 0900-5400 540 (5 eurocents per minute).
The AFM promotes fairness and transparency within financial markets. We are the independent supervisory authority for the savings, lending, investment and insurance markets. The AFM promotes the conscientious provision of financial services to consumers and supervises the honest and efficient operation of the capital markets. Our aim is to improve consumers’ and the business sector’s confidence in the financial markets, both in the Netherlands and abroad. In performing this task the AFM contributes to the prosperity and economic reputation of the Netherlands.
The AFM is committed to promoting fair and transparent financial markets.
As an independent market conduct authority, we contribute to a sustainable financial system and prosperity in the Netherlands.