Peevski Calls for Stricter Oversight to Protect Bulgarians from Easy Money Traps

Delyan Peevski, leader of “DPS-New Beginning,” has called for immediate action by Bulgarian institutions to protect citizens from the growing problem of quick loans and easy money traps. He stressed that many people have fallen into situations where they cannot service their loans, accumulating debts that risk their homes or push their income below the subsistence level. According to Peevski, the state cannot ignore such widespread financial distress.

In his statement, Peevski outlined that key institutions, including the Ministry of Finance, the Bulgarian National Bank (BNB), the Labor Code authorities, and the National Agency for the Protection of Financial Institutions, must tighten control over non-bank credit institutions. He urged these bodies to optimize procedures, enforce stricter oversight, and propose necessary legislative amendments to be adopted in the National Assembly at the start of the autumn session.

Central to his proposal is the need for regulations, control measures, and sanctions that genuinely protect consumers. Following European standards, Peevski called for licensing the operations of lending companies, stricter control over interest rates, and the establishment of specific rules for different loan categories. This, he argued, would prevent unfair practices, such as fake “business loans” that strip consumers of their legal protections.

Peevski also highlighted the importance of regulating fees and commissions, as well as setting a ceiling for interest rates. These measures would preserve a competitive market while safeguarding consumers from exploitation and fraud.

In addition, he proposed the creation of a digital credit register under the BNB, which would report all loans in real time. This platform would serve as a barrier against abuse, fraudulent schemes, and malpractices within the quick loan sector.

Finally, Peevski suggested establishing a compensation fund for victims of unfair practices by quick loan companies. Such a fund would offer a tangible safety net, ensuring that those harmed by predatory lending can receive restitution and protection.

By implementing these measures, Peevski believes that Bulgaria can address the rising financial risks posed by easy money schemes while creating a safer and more transparent lending environment for its citizens.