Bulgarian Prosecution Urges Tighter Control Over Fast Loan Companies

Bulgaria's Prosecutor's office recommends legislative changes in the regulation of non-banking credit sector.

“Legislative changes in the regulation of fast loan companies should be introduced”, said Prosecutor Veselin Naydenov, for NOVA TV.

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

Bulgarian National Bank (BNB) is responsible for the control over fast loan companies, which are subject to registration at BNB, but there is no data yet whether BNB performs it duties as a regulator of the non-banking credit sector, said the prosecutor.

Bulgaria’s Supreme Cassation Prosecutor's office performs an inquiry on whether BNB implements proper control over fast loan companies and whether the regulator fully applies its legislative power in order to eliminate unfair terms of loan agreements.

The inquiry was self-initiated by the Bulgarian Prosecution after a report by NOVA TV on mistreatment of customers by fast loan companies.

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