When evaluating the creditworthiness of credit recipients, "Paskolų klubas" applies very high requirements. However, the cases, when the consumer credit recipient fails to perform his obligations on time and the credit provider can incur losses because of that, can always occur. As we seek for you to make the decision to invest into consumer credits responsibly, we present the following information regarding the risks of such investment type.

Credit provider should understand that he assumes the whole risk of credit recipient's insolvency, it means that consumer credit recipient can fail to perform the consumer credit agreement and because of that the credit provider can incur losses, i. e. fail to receive all or part of the interest that had to be paid by the consumer credit recipient under the consumer credit agreement, also fail to recover the whole amount of the credit or part thereof.

Credit provider should understand that under the legislation that is in effect, the recipient of the consumer credit can repay part or whole amount of the consumer credit in advance, and because of that credit provider will recover under the agreement less interest than was intended.

After the credit provider decides to invest into consumer credits, he selects the credit rating(s) of consumer credit recipients, to whom his funds will be lent. "NEO Finance" undertakes to conclude consumer credit agreements only with the recipients of consumer credits, who on the day of the creditworthiness evaluation are assigned a rating that is specified in the special conditions. Credit rating is an expression of a consumer credit recipient creditworthiness evaluation result, it is graded from A – reliability of the highest level - to E – reliability of the lowest level. "NEO Finance" tries to reduce the risk of insolvency as much as possible, therefore, consumer credits are granted only to persons with a rating of A-C, but the credit provider must understand that the insolvency risk of consumer credit recipients with the high creditworthiness rating still remains.

The liability of "NEO Finance" regarding the insolvency of consumer credit recipient is limited. "NEO Finance" is liable for the insolvency of consumer credit recipient, if it violated the provisions of Consumer credit recipient creditworthiness evaluation rules and because of that evaluated the solvency of the credit recipient improperly. In such case "NEO Finance" compensates the losses that the credit provider incurred directly.

Furthermore, as of 29 November 2016 "NEO Finance" does not check the Register of Legally Incapable Persons and Persons with Limited Legal Capacity (RLIPPLLC) no more, when checking the creditworthiness of persons. Should the consumer credit agreement be concluded with an incapable person because of the decision adopted by "NEO Finance" not to check the Register of Legally Incapable Persons and Persons with Limited Legal Capacity (RLIPPLLC) any more, after becoming aware of such circumstances "NEO Finance" immediately will compensate to the persons, who invested into the consumer credit of such person, their direct losses that are deemed equal to the non-repaid amount of the investment and the interest of payment till the actual date of the investment repayment.


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