The Baltic countries are a real mine of payday loans. It is enough to mention that companies such as New Credit, Best Credit, Lender, SMS, and Old Credit come from that region. The Estonian government has decided to fight the often unfair practices and has banned advertising of payday loans companies, the ban covers both television and radio. More information at

A ban on debt collection

The main reason was the increasingly aggressive debt collection of their clients’ debts by loan companies. Often, separate companies were established for this purpose, which only dealt with the collection of overdue liabilities of customers.

In addition, the fees charged when recovering debts often exceeded the cost of the loan itself. The costs of reminders could reach up to 12 USD, and the cost of sending an email or text with a reminder of debt repayment could cost up to 5 USD, or over 20 USD.

The maximum cost of debt collection

In addition to the ban on advertising instant payday loans, the Estonian government has introduced maximum costs during debt collection, and so a single prompt will be able to cost up to 5 USD (20 USD), and the total cost of recovery up to 50 USD, or about 200 USD.

Of course, the idea of ​​the Estonian government came under great criticism of the media, which drew a lot of revenue from advertisements bought by companies providing quick loans, the estimated revenue from this source is over EUR 3 million.

Regulations of the Polish payday market

The situation of payday loans is also strongly discussed on the Polish market, where payday loans granted via the internet are developing at a dizzying pace. It is worth adding that the Ministry of Finance, together with the Polish Financial Supervision Authority and the Office of Competition and Consumer Protection are working on amending the Consumer Credit Act, as well as on introducing the maximum cost of borrowing money.

We urge you once again that the reform be carried out wisely and not kill the non-bank loan market, as happened in Germany after the reforms of the government there. Payday loans are often the only option to save the home budget for many Poles, especially those excluded from the banking market due to lack of creditworthiness, entries in the BIK database, or the lack of an appropriate contract with the employer.