Leeds credit lender hit by consumer law changes in Slovakia

CREDIT lender International Personal Finance is “evaluating alternative business models” for its operations in Slovakia as it expects to be affected by changes to consumer legislation.

It is proposed that a 27% cap on remuneration would apply to all costs associated with a loan. Although the Slovakian President previously vetoed legislation, parliament has made changes and it has now been approved.

The Leeds-headquarted business told the stock market “that the changes will have a material adverse financial impact on its existing Slovak business and IPF is therefore currently evaluating alternative business models for this market.”

It plans to provide an update when it announces its annual results in February.

The Slovak business generated £43m of revenues – around 5% of the group’s total – and pre-tax profits of £6m in the 12 months to June.

The impact of the proposed legislation has already been felt in IPF’s share price, which has fallen by 30% in the last two months.