Financial services

The Latvian Traders Association has submitted to the Saeima's Economic Affairs Committee and the government a protest against the amendments to the Consumer Rights Protection Law promoted by the Ministry of Economics. The Association considers the penalty system – up to 4% of turnover or EUR 300,000 – disproportionate and criticises vague concepts ("reasonable price", "reasonable period" for repairs and spare parts) that create a risk of arbitrary application by the Consumer Rights Protection Centre (PTAC), as well as the liability of small distributors for goods from third-country manufacturers. The LTA proposes a fixed penalty cap of EUR 1,000 for small businesses and an "advise first" approach.

The Consumer Rights Protection Centre (PTAC) reports a possible security incident in the Remote Statistical Data Collection System (ASDIS, a class C system). The contact details (name, e-mail, telephone) of 697 company representatives and 34 PTAC officials were affected – mainly contacts of licensed consumer lenders, debt collection service providers and package travel service providers, most of which are already available in public registers. Supervisory data submitted by companies were not affected; the system has been shut down and users have been informed.

On 2 September 2026 the Constitutional Court began examining case No. 2025-23-01 on the compliance of Section 4(1)(2) and (5) and Section 5(1)(2) and (2) of the Law on the Release of Natural Persons from Debt Obligations with Articles 1 and 105 of the Constitution (Satversme). The application was filed by a licensed debt collection service provider that purchases and recovers debts out of court; it considers that the provisions excessively widen the circle of persons eligible for release and substantially reduce the value of its debt portfolio, infringing property rights and the principle of legitimate expectations. The case is being examined in written proceedings; a ruling must be adopted within 30 days after the court hearing.

The Constitutional Court has begun assessing whether the provisions of the Law on the Release of Natural Persons from Debt Obligations, which allow a person to be released from part of their obligations if their income and debts do not exceed the statutory thresholds and the person meets the social criteria, comply with the Constitution. The application was filed by debt collection service providers that purchase and recover debts out of court; they argue that the amendments in force since 21 January 2025 substantially widened the circle of persons eligible for release and reduced the value of debt portfolios purchased at market price, infringing property rights and legitimate expectations. The case is being examined in written proceedings, with a ruling due within 30 days after the hearing.

A Russian-language article on the case opened at the Constitutional Court concerning provisions of the Law on the Release of Natural Persons from Debt Obligations which, after the amendments of 21 January 2025, allow a wider circle of persons to be released from obligations if their income and debts do not exceed the statutory thresholds and the person meets the social criteria. The application was filed by debt collection companies that purchased the debts at market price, arguing that the provisions substantially reduce the value of their portfolios and violate property rights and the principle of legitimate expectations. A ruling is due within 30 days after the court hearing.

The Ministry of Justice is promoting amendments to the Law on the Prevention of Money Laundering and Terrorism and Proliferation Financing: if a credit or financial institution terminates its relationship with a foreign resident or legal entity and closes the account, but the client does not exercise the right to withdraw the funds within five years, the funds escheat to the state. The rules do not apply to natural persons who are Latvian residents, nor to frozen, attached or pledged funds. At the start of 2025 there were 39,136 closed accounts at credit institutions holding approximately EUR 26.8 million; the funds are intended to be channelled into support for at-risk children and young people.

An e-consultation on an unclear rent invoice ("1.00 × 111.260 months = EUR 111.26"): most likely the unit of measurement is stated incorrectly – 111.26 is the area in square metres, and EUR 1.00 is the charge per m² per month. References are made to Sections 6 and 11 of the Accounting Law (true, understandable and traceable information), paragraphs 32–33 of Cabinet Regulation No. 877 (description of the service, unit, quantity, price) and Section 3 of the Consumer Rights Protection Law. It is recommended to request an explanation from the landlord in writing within 15 working days and, if matters remain unclear, to contact PTAC; payment should not be withheld without a verified calculation.

Kaspars Treilibs, senior lawyer at TEGOS, explains the amendments to the Law on the Prevention of Money Laundering and Terrorism and Proliferation Financing (NILLTPFN) adopted on 3 December 2025, whose provisions on beneficial owner (PLG) data entered into force on 1 July 2026, implementing the requirements of Directive (EU) 2024/1640. From now on, for each beneficial owner the Enterprise Register must record all of their nationalities and a new element – the extent of control – in addition to identification data, country of permanent residence and type of control. Until 31 December 2026 the Enterprise Register will automatically record the extent of control where it can be determined from existing data (e.g. shareholder status); in other cases the entity itself must submit the information. From 1 July a beneficial owner may request that public access to their data be restricted if disclosure creates a risk of harm.

On 1 September the Official Gazette (Latvijas Vēstnesis, No. 167) published the amendments to the Consumer Rights Protection Law adopted by the Saeima on 20 August, which enter into force on 15 September (some provisions on 20 November; language requirements must be met by 30 June 2027). New definitions are introduced (creditor, credit intermediary, deferred payment service, tying practice), offering credit without the consumer's express request is prohibited, creditworthiness assessment is strengthened using verified income data and credit information bureaus, and reasonable forbearance measures are set out in the event of payment arrears. Large companies providing deferred payment services must register in the PTAC register; restrictions on remuneration policies for creditors' employees and intermediaries are set, and the withdrawal period for distance contracts is extended where information has not been provided.

On 1 September the Official Gazette (Latvijas Vēstnesis) published the amendments to the Credit Information Bureaus Law adopted by the Saeima on 20 August, which enter into force on 15 September; the new paragraphs of Section 12 enter into force on 20 November 2026. Natural persons' rights are strengthened to obtain credit information about themselves and to monitor assessments of their creditworthiness, as well as to register in the bureau's system a note declining credit offers, visible to all bureau users (creditors); the bureau must delete a withdrawn note within three days.

Sorainen's review of legislation and case law for 11–25 August. Key points for businesses: on 19 August amendments to the Unfair Trading Practices Prohibition Law entered into force; on 20 August the Saeima adopted in the 3rd reading amendments to the Consumer Rights Protection Law and the Credit Information Bureaus Law, and in the 2nd reading amendments to the Advertising Law, the Payment Services Law and others, under which consumer supervision in financial services passes from PTAC to the Bank of Latvia from 1 January 2027; Cabinet regulations on registration of deferred payment service providers (registration fee EUR 50,000) and consumer credit amendments (Directive 2023/2225) have been drafted. In the Account Register regulations the Insolvency Control Service (to be liquidated on 1 October 2026) is replaced by the Ministry of Justice; amendments to the Advocacy Law shorten the practice requirement from 7 to 5 years. The review also covers Constitutional Court case 2026-13-01 on compensation for losses in the event of an unjustified attachment of property and Senate judgments SKC-526/2026 and SKA-393/2026.

Rūdolfs Eņģelis, sworn attorney at Sorainen and Chairman of the Supervision and Control Committee of the Latvian Bar Council, explains in an interview with LV portāls that following the Moneyval assessment the overall level of ML/TF risk in the legal profession has decreased. The AML/CTF Law's requirements apply to fewer than half of practising attorneys; the highest risks are concentrated in large commercial transactions and transactions involving funds from sanctioned jurisdictions. The Bar Council carries out on-site and remote inspections, a sectoral risk assessment has been completed and the internal control guidelines have been updated; the new single EU AML/CTF regulation and supervisory structure will pose a challenge.

An interview with sworn attorney Eņģelis on the legal profession's risks in the field of anti-money laundering following the Moneyval assessment. The AML/CTF Law's requirements apply to around 500 of 1,400 attorneys; the greatest risks lie in large commercial transactions, especially real estate and cash transactions. The Council of Sworn Attorneys carries out on-site and remote inspections, and since 2020 annual professional development on AML/CTF and sanctions has been mandatory for attorneys; a new sectoral risk assessment was completed in spring 2026. The new EU AML/CTF regulation and the centralised supervisory authority will require additional capacity.

Minister of Agriculture Uldis Augulis criticises the guidelines drawn up by the Bank of Latvia for commercial banks on assessing biodiversity impact in lending to agriculture and forestry, which were prepared without the involvement of the Ministry of Agriculture and sectoral organisations. The guidelines classify economic activities as favourable or unfavourable to biodiversity, which may restrict access to credit for farmers and foresters and create additional documentation requirements. The Minister calls for the guidelines to be substantially reworked in cooperation with the sector.

LV portāls explains consumers' 14-day no-reason withdrawal right from consumer credit agreements, requiring repayment of principal and interest within 30 days. Creditors cannot charge penalties for withdrawal except unreimbursed state fees, with exemptions for loans under €140, overdrafts and interest-free credit.

Latvia's Ombudsman states that insurers may not demand, and medical practitioners may not provide, a patient's complete medical history for evaluating an insurance claim. Only information directly relevant to the specific insured event may be shared, in line with the data-minimisation principle. The opinion addresses insurers' practices when handling clients' health data.

The Cabinet approved draft laws by the Finance Ministry and the Bank of Latvia transposing EU Directive 2025/1 on recovery and resolution of insurers. Insurance and reinsurance companies will have to prepare recovery plans, and if a company faces serious difficulty, the supervisor may apply resolution tools such as business or asset sales, a bridge institution, or write-down of liabilities. Costs will be covered by the Insurance Guarantee Fund, funded by licensed insurers.

The article explains EU residents' right to open a basic payment account at a bank and the conditions under which a bank may refuse or close one. Fees may not exceed average market rates by more than 25%, and consumers can appeal to PTAC or the financial ombudsman.

The Saeima backed, in second reading, a procedure for handling funds left in bank accounts after a bank ends a client relationship. Clients will have five years to claim their money before the right lapses and the funds pass to the state within 30 days, except where frozen or subject to enforcement. As of early 2025 such accounts held roughly EUR 26.8 million.

On 20 August the Saeima adopted amendments to the Consumer Rights Protection Law introducing a new "capital release credit" product, allowing loans secured against real estate that is not the borrower's declared residence. The loan may not exceed 70% of the property's market value, the repayment term can run up to 30 years, and the borrower's liability is limited to the mortgaged asset. The new rules take effect in mid-September and aim to boost Latvia's low lending-to-GDP ratio (27.5%, versus the eurozone average of 76.9%).

On August 20 the Saeima adopted amendments to the consumer rights protection and credit information laws letting residents register with credit bureaus a refusal to borrow, which lenders will then have to respect when assessing applications. The law also curbs unsolicited credit offers, sets requirements for remote lending and disclosure of AI-personalised offers, and introduces a new home-equity loan product capped at 70% of property value. It further extends registration requirements to credit intermediaries and large deferred-payment providers.

On 6 August the Competition Council approved SIA Hipocredit Group acquiring 100% of the shares and decisive influence over non-bank lender AS Hipocredit. Both companies operate in the mortgage lending market, issuing loans secured by real estate, forest land and agricultural land. KP concluded the deal will not materially change market structure or restrict competition.

The article explains "STOP Credit," a Credit Information Bureau service anyone can activate to block new loans being taken out in their name, guarding against both impulsive borrowing and identity theft. Lifting the block requires a 72-hour waiting period meant to blunt pressure from scammers. Latvia's Civil Law, Article 1587, is cited as the basis for a borrower's duty to repay even when victimized by fraud.

The piece explains that core terms of risk insurance (property, motor) and life insurance contracts can only be changed by mutual agreement of both parties. Contracts can be ended by written agreement taking effect 15 days after notice, or when the insurable interest lapses or ownership changes. On termination, insurers refund the unused premium minus a 15% administrative deduction.

PTAC reports a growing number of complaints drafted with AI tools that contain legally unfounded or mistaken arguments. The agency stresses that AI is not a legal adviser and bears no responsibility for the information it provides, urging consumers to verify AI suggestions against official sources, especially regarding deadlines and financial obligations.

The Consumer Rights Protection Centre (PTAC) warns that more Latvians are submitting AI-drafted complaints that often contain serious errors. PTAC says AI can produce convincing text but lacks legal expertise — citing outdated legislation, wrong deadlines, and legally defective claims against businesses or in court. The agency recommends treating AI only as a supplementary tool and avoiding entering sensitive data without understanding how it is processed.

As of August 19, amendments to the Consumer Rights Protection Law lifted an eight-year ban on consumer credit advertising, replacing it with a responsible-advertising regime requiring cost warnings and barring implications that credit is easily available. PTAC can fine violators up to EUR 300,000.

Latvia's Finance Ministry and central bank are advancing bills implementing an EU directive on recovery and resolution for insurers and reinsurers in distress: firms must first prepare recovery plans, and if these fail, a resolution authority could use asset sales, a temporary bridge entity, or liability restructuring. The plans also include an insurance protection fund and lighter requirements for small, simple insurers. The bills are currently before the government.

Amendments to the Consumer Rights Protection Law lift the blanket ban on credit advertising, replacing it with specific requirements: ads must be honest and clear and carry a warning covering at least 10% of the ad space. Credit agreements can no longer be signed between 21:00 and 08:00 (previously 23:00-07:00), and affordability checks are tightened, especially for borrowers under 20. The changes take effect on 27 September.

PTAC warns consumers that a credit intermediary does not itself issue loans and often charges a commission, while the loan agreement is signed with the actual lender. The agency advises checking an intermediary's partner lenders and fees beforehand, and verifying that mortgage credit intermediaries are listed in PTAC's register. Particular caution is urged when assessing loan refinancing offers.

Fintech firm Capitalia launched a monthly financial-health index for Latvian companies, scoring over 3,000 firms in July. The average score was 87/100, but over a quarter carried tax arrears. The tool could help creditors gauge counterparty insolvency risk.

The government approved amendments expanding the agricultural, fisheries and rural development guarantee scheme, letting banks restructure up to 50% of a loan's principal with a state guarantee of up to EUR 750,000 per beneficiary. The guarantee premium will run at roughly 0.5% annually, with about EUR 3 million redirected from the Rural Development Programme to fund it.

The article explains that before issuing a policy, insurers must identify the client's needs and prepare a proposal detailing covered risks, exclusions, premium and deductible, plus provide the contract terms and a comparable product information document. From 1 July 2026 policies must clearly mark both covered and excluded risks, while a plain-language requirement for terms phases in during 2027-2028.