Lichvolapka (the Loan Shark Catcher) – A New Tool to Catch Unfair and Unlawful Credit Agreements
Published: Dec 10, 2024 Reading time: 3 minutes
Marek* originally borrowed CZK 900,000 (€35,000), but ended up repaying more than CZK 1.5 million (approximately €60,000)! With our help, he was able to get back CZK 600,000 (€24,000). Our debt advisers have dealt with countless of similar situations and facilitated hundreds of similar agreements with credit companies. And while this situation seems like it should be easily avoidable, many creditors still fail to properly assess the debtor’s ability to repay a loan or offer lines of credit with obscenely high interest rates. This is why we created Lichvolapka (the Loan Shark Catcher tool). With this tool, everyone can quickly and easily verify that their loan is realistic and that it complies with the law.
Following his parents’ debilitating car accident, 40-year-old Marek opted to work as a freelancer, hoping to better manage his schedule and assist his parents. However, as his income declined, be become unable to meet his financial obligations. To make ends meet, Marek set up multiple credit cards from various non-bank lenders, accumulating a total of six revolving credit accounts.
Our debt advisor Jaroslav Mašek explains: “Marek had to pay an average of CZK 75,000 (€3,000) a month, with the exact amount based on the drawdown and interest on his revolving loans. Fortunately, he reached out to us in time and was proactive about resolving the situation.”
After reviewing the available documents, Marek was found to have borrowed over CZK 900,000 (€35,000) but had already repaid more than CZK 1.5 million (€60,000). Suspecting the creditors had not properly assessed Marek’s ability to repay the loans and that the interest rates were unreasonable, Marek and Jaroslav submitted proposals for amicable resolutions to all creditors. The creditors accepted these arguments and terminated the loan agreements, ultimately returning over CZK 600,000 (€24,000) that Marek had overpaid.
Using Lichvolapka (the Loan Shark Catcher)
In recent months, our debt advisors have facilitated hundreds of amicable debt settlement agreements. This is because some lenders continue to extend credit without properly assessing the borrower’s repayment capacity or charging exorbitantly high interest rates.
To help people navigate the complex issue of loan compliance, we have developed a new tool called Lichvolapka (the Loan Shark Catcher). This resource (currently available in Czech) allows anyone to quickly and easily check whether their loan is in accordance with the law. It is also completely free of charge!
David Borges, the creator of the tool, explains: “You only need to provide a few key details about how you got the loan and how much it cost. The true cost of a loan is measured using the Annual Percentage Rate (APR), encompassing not just the interest rate but also any additional fees lenders often charge. Crucially, the APR is a mandatory disclosure in all loan agreements.”
If our tool suggests an issue with pre-exisiting loan or if you have any doubts about it at all, feel contact our advisers at 770 600 800 for assistance. They will thoroughly examine your situation free of charge.
“Even when people approach us without a loan agreement, we are still able to help them,” says Jaroslav Mašek, one of PIN’s debt advisers. “Marek did not expect to recoup any money at all. When I last spoke with him, he was pleased to share that he had paid for his parents’ rehabilitation appointments, taken a much-needed vacation, and decided to donate some of the funds to charity. I was glad we could assist him.”
*The client's name has been changed for privacy reasons.
