Bulgarian Parliament Prepares New Regulation Over Fast Loans Companies

By the end of the year Bulgaria will introduce new legislation in order to better protect consumer rights in the non-banking credit sector.

Bulgarian Parliament is preparing legislative changes aiming to make consumers better informed and better protected when they borrow money from fast loan companies, informs bTV.

In the future, non-banking credit institutions, such as fast loan companies, will be obliged to comply to the same rules applied to commercial banks in regards of consumer lending.

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.

Last week a Prosecutor from Bulgaria’s Supreme Cassation Prosecutor's office recommended legislative changes in the regulation of non-banking sector, because according to him, current regulatory frame does not protect the borrowers enough.

Bulgarian Prosecution currently performs an inquiry over BNB to determine whether the watchdog fully applies its regulatory power in order to eliminate unfair terms of loan agreements.

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