International Personal Finance PLC (LON:IPF) shares tumbled after Poland proposed reducing the cap on non-interest costs lenders can charge consumers on loans.
Poland has amended a draft set of proposals to reduce the cap on non-interest charges, such as arrangement fees, to no more than 10% on the value of the original loan from 25%.
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The annual cap would also be reduced to 10% from 30% under the proposed reforms.
Shares in IPF fell 20.4% to 117.8p in late morning trading.
The doorstep lender said on Friday: “We understand that the proposals will be referred to the EU for review and comment, and may also proceed to parliament for consideration, during which they would be debated and could be modified further.
“IPF will be contributing actively to this process to seek a more positive outcome for consumers and businesses.
“We will update the market with our assessment of the potential financial impact on the group when and if the proposals are finalised and enacted.”