Sejm passes interest rate limit law amid fierce opposition

The law is meant to put an end to the present practice of some financial institutions of charging poor consumers with a bad credit rating exorbitant interest rates. The law caps maximum interest on loans at four times the National Bank of Poland's Lombard rate, meaning that at present the limit amounts to 26% annually. The Civic Platform, the only party which voted against the law, is considering filing a protest with the Constitutional Tribunal, claiming that the regulations would interfere excessively with the freedom of commercial activity. Banks say that they are likely to toughen the criteria for granting loans as a result of introduction of the law. Meanwhile, consumer loan company Provident, charging the highest interest rates on the Polish market at as much as 200% annually, says that it will adjust to the new regulations, but that they will harm customers and benefit illicit lenders. (Gazeta Wyborcza) T.J.