On 4 April 2012, the Netherlands Authority for the Financial Markets (AFM) imposed an order for incremental penalty payments on Friendly Finance B.V. The order was imposed because Friendly Finance B.V. offered and continues to offer credit via its website www.betaaldag.nl without holding a licence for this purpose.
Friendly Finance B.V. is required to cease offering credit in the Netherlands until it complies with the applicable regulations. The AFM previously informed Friendly Finance B.V. of the fact that it is not allowed to offer credit without a licence for this purpose.
In response to the order for incremental penalty payments from the AFM, Friendly Finance B.V. changed its working methods. Friendly Finance B.V. now collects the sold claim on wages or benefits directly from the consumer's employer or benefits agency. In its former approach, the consumer received the sold amount from the employer or the benefits agency and had to pay that amount to Friendly Finance B.V. within one day.
According to the AFM, however, this means that Friendly Finance B.V. is still offering credit to consumers. That is why the company is now obliged to pay incremental penalty payments. Friendly Finance B.V. has to pay an amount of €4,000 for every day it fails to comply with the order for incremental penalty payments, up to a maximum amount of €80,000 in total penalty payments.
What is an order for incremental penalty payments?
An order for incremental penalty payments is an instrument used to order a company or a person to perform or cease certain actions. If the order is not complied with during the term set, the company/person is required to pay a certain amount.
If you have any questions or comments, you can contact the Financial Markets Information Line on: 0900-5400 540 (5 eurocents per minute).
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