Rules for Loan Sharks are Tightened

At the request of the Consumer Foundation, on May 1, 2015 the Central Bank of Curaçao and St. Maarten declared new rules for individuals who provide short-term loans at high interest rates, usually to low-income people. There were already rules in effect for these “loan sharks,” but now they have been further tightened to protect the loanees as much as possible. This is a first step in the direction toward an intensive monitoring of this group. In addition, by January 1, 2016, limits will be set on the level of interest rates that they may charge. The new rules are also applicable to those who issue “vouchers.” Vouchers are given to impoverished people who are in urgent need of a sum of money that they have to pay back double the value. The authorities also want more transparency in these transactions, in the background and the methods of the lenders.