Latvia may soon restrict access to phones bought on installment plans
Latvia plans to classify phone installment purchases as consumer credit, which could mean stricter requirements for buyers starting this autumn. Most residents currently buy phones this way.
Buying a mobile phone on an installment plan in Latvia could soon become more complicated. Authorities are considering classifying this type of purchase as consumer credit, meaning buyers would have to meet the same requirements as those taking out a loan.
Installments are the most popular purchase method
Around 70% of Latvia's residents currently prefer to buy phones on installment plans. This approach is used not only for premium devices but also for cheaper models — for phones priced under 250 euros, more than half are purchased this way.
A representative from telecom operator Tele2 explains that installment plans are popular because many residents cannot afford to pay the full price of a device upfront, and this purchase method does not involve interest charges. It is also noted that customers generally meet their payment obligations responsibly — only about 3% of the total amount owed for devices remains unpaid over the long term. This suggests mobile communication has become an essential everyday need that people carefully budget for, covering both service and device costs.
Upcoming changes
However, the situation could change significantly by the end of this autumn. If phone sales on installment plans are reclassified as consumer lending, sellers and operators would need to comply with all related regulations. This could include anti-money laundering and counter-terrorism financing requirements, mandatory assessment of a customer's creditworthiness, and other new restrictions that currently do not apply to such purchases.
