International Personal Finance considering alternative model for Slovak business

International Personal Finance said on Tuesday that it is evaluating alternative business models for the Slovakian market, after new consumer legislation was passed that may damage its Slovak business.

IPF said the proposed draft amendments to consumer legislation were vetoed by the President, returned to parliament where further changes were made and the amendments re-approved.

The President has now signed the amended legislation and it will become effective imminently upon publication.

“The final legislation is in line with the company's previous expectation and IPF's view remains that the changes will have a material adverse financial impact on its existing Slovak business.”

Shares in the company tanked earlier this month after it announced that new legislation could hurt its business in Slovakia.

The new legislation includes changes to the Civil Code prohibiting contracts for ancillary services that relate to the customer’s fulfilment of an underlying agreement.

IPF said in early December: “Based on our current understanding, these changes would mean that all fees that IPF raises in connection with the issuance of a loan, including the fee for home service, would need to be levied at rates consistent with the remuneration cap."

At 1011 GMT, IPF shares were 2.3% lower at 286.10p.