Bulgarian Central Bank, Watchdog Probed over ‘Fast Loans’

Business | October 16, 2013, Wednesday // 13:06|  views

Photo by happy-at-home.com

Bulgaria's Prosecutor's office has opened an inquiry into Bulgarian National Bank (BNB) and Commission for Consumers Protection (CCP) over complaints against fast loan companies.

The Supreme Cassation Prosecutor's office self-initiated the inquiry after a report by NOVA television on mistreatment of customers by fast loan companies. The report was aired on October 11.

Customer complaints against non-financial institutions providing fast loans have increased significantly, due to unfair terms of loan agreements in the non-banking credit sector.

Fast loan companies are subject to registration at the Bulgarian National Bank (BNB), while Commission for Consumers Protection (CCP) is responsible for protecting the rights of Bulgarian customers.

Bulgaria’s Supreme Cassation Prosecutor's office will check whether BNB and CCP implement consumer protection legislation over fast loan companies and how both regulatory bodies apply their power in order to eliminate unfair terms of loan agreements.

The Bulgarian Parliament recently announced its intention to put a 20% ceiling on the interest rates on fast loans, which are considered by customers to be extremely high at present.

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Tags: Bulgaria, Supreme Cassation Prosecutor's Office, inquiry, fast loans, interest rates, Bulgarian National Bank, BNB, Commission for Consumers Protection, CCP, loan agreement, unfair terms


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