The lending company Creamfinance has come to a decision to end operations in Denmark and to wind down its subsidiary, Creamfinance Denmark ApS, which services borrowers in the Danish market. As a result, the company will no longer offer opportunities to invest in loans issued in Denmark.
In July 2020, the Danish Financial Supervisory Authority (DFSA) (Danish: Finanstilsynet), the regulator for the alternative consumer lending industry in Denmark, released an update changing the regulatory norms for APR cap on consumer finance services. At that time, Creamfinance stopped issuing new loans to new borrowers and continued to service existing loans and customers. The lending company has now decided to fully exit the Danish market.
Creamfinance Denmark began operations in 2016 and has been placing loans on Mintos since 2019. During this time, investors on Mintos have earned €731 679.95 in interest from loans, with 63 310 Primary Market investors choosing them for their portfolio, and an average investment amount of €459.66 per investor.
To cover its outstanding commitments to investors and Mintos, Creamfinance Denmark has now repurchased all remaining loans from Mintos investors and has not placed any new loans on the platform since the decision to exit the market was taken. In all other markets, Creamfinance Group continues to offer short term and personal loans in Latvia, Poland and Spain. Creamfinance currently offers average interest rates of 9-11%.
About Creamfinance
Consumer finance services provider Creamfinance focuses on relevant, value-added data, otherwise referred to as Smart Data. Utilizing advanced algorithms and machine-learning capabilities to quickly evaluate and score loans, Creamfinance offers a highly customized approach to the personal loan process in a speedy and reliable manner. It aims to become a one-click loan provider to consumers across the globe. Currently, the company is fully operational in five countries (Latvia, Poland, Czech Republic, Mexico and Spain) with an IT office in Austria. Cream Finance Holding LTD provides a group guarantee. This means it will ensure the execution of the buyback obligations.
