Bulgaria's Lawmakers Adopt Consumer Credit Act Amendments

Bulgaria's lawmakers have conclusively adopted the amendments to the Consumer Credit Act which will come into effect three months after their promulgation in the State Gazette.

The regulations will apply only to mortgage agreements signed after the law comes into force, except for the fees, compensations and penalties which can be renegotiated, Bulgarian Dnevnik informs.

The amendment was proposed by Yanaki Stoilov, MP of Bulgarian Socialist Party (BSP). A total of 102 MP voted in favor, three were against it and 16 abstained.

Stoilov clarified that the wording will allow consumers, who want an early repayment of old mortgage credits, to demand the bank to recalculate the sum under the new conditions.

Under the other significant amendments recently introduced to the Consumer Credit Act, creditors are prohibited from collecting more than a on-time fee and/or commission for the same service. The type, amount and service for which fees and/or commissions are collected must be clearly defined in the consumer credit contract.

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