Hungarian law affects Intl Personal Finance

Doorstep lending firm International Personal Finance has announced that its draft legislation, to set a maximum APR for unsecured customer loans at 24% above the Hungarian base rate (6%), has been approved.

This 30% cap compares to the current situation where customers are limited to one loan of more than 65% from any individual lender per calendar year.

The draft legislation is scheduled to become effective for loans issued on or after 1 January 2012.

Try 6 free issues of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

Sign up for MoneyWeek’s free twice-daily newsletter.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Sign up

The firm said: "We will amend our product pricing and structure to meet the requirements of this legislation and, whilst we cannot be certain as to the impact this may have on the future performance of our business, based on our experience of similar changes we have made in the past we do not expect a material impact on the prospects of our Hungarian business."

The share price fell 1.97% to 219.1p by 14:55.

NR