4finance, owned by the Luxembourg company 4finance Holding, has been offering consumer loans under the brands SMSCredit and Vivus. It has been the biggest consumer credit company in Lithuania with a market share of 37.8% over the first nine months of this year.
The central Bank of Lithuania revoked the company's licence to issue loans because of "irresponsible lending" and repeated violations of finance regulations.
"We have applied the strictest sanction provided for in the law because of repeated violations and disregard for numerous instructions from regulation institutions to eliminate these violations," the Bank of Lithuania said in a statement. "Irresponsible lending and disregard for the law by the biggest player in the market is inexcusable - these violations undermine trust in the financial system, its players, therefore they have not and will not be tolerated."
According to the statement, the latest inspection of 4finance has revealed that the company continued to issue loans to borrowers who did not meet minimum requirements outlined by law.