meta_id 3414116

On August 5, 2026, the Czech National Bank (CNB) issued a fine of CZK4,000,000 (approximately €160,000) to Credivo Finance s.r.o. (formerly FlexiFin s.r.o.) for systematic failures in consumer creditworthiness assessment procedures. The CNB conducted an inspection of the non-bank consumer credit provider covering the period January 1 to April 30, 2025, identifying critical deficiencies in how the company evaluated borrowers' ability to repay loans. The CNB found that Credivo Finance failed to establish and maintain adequate procedures and rules for assessing consumer creditworthiness across three key areas. First, the company did not properly verify the existence and sustainability of borrowers' income, failing to assess employment stability or duration. Second, it did not adequately verify consumer expenditures, relying instead on unverified borrower declarations and standardised calculations rather than individualised assessments. Third, it did not properly verify existing financial obligations, using only borrower-stated debt figures while ignoring information available from credit registers and bank statements. In a sample of 50 consumer loans examined, the CNB found deficiencies in all 50 cases regarding expenditure verification, in 40 cases regarding existing obligations, and in 21 cases regarding income verification. The company provided "Flexi loans" with interest rates ranging from 15 percent to 389 percent annually. By April 30, 2025, 31 percent of loans issued during the inspection period were in arrears, rising to 44 percent for loans issued in January and February 2025. The CNB imposed the fine under the Consumer Credit Act for violating requirements on creditworthiness assessment procedures and for providing consumer credit without proper assessment. The company terminated its non-bank consumer credit provider authorisation on March 31, 2026. Credivo Finance may lodge an objection within eight days from receipt of the decision. The decision became enforceable on August 14, 2026.