Bulgaria proposes stricter rules for fast credit companies

Bulgarian lawmaker Zdravko Markov of the Progressive Bulgaria party has announced plans to tighten regulations for fast credit companies to protect consumers from predatory practices. The proposed legislative changes aim to prevent companies from bypassing the annual cost ceiling through various hidden fees, such as express service charges, guarantees, and other additional services.

Markov noted that while the current annual cost ceiling is 52%, many lenders circumvent this by adding extra costs that significantly inflate the real price of a loan. He emphasized that the goal is not to make loans more expensive, but to ensure transparency and prevent a situation where a small loan can balloon into a massive debt due to undisclosed fees.

Additional measures under discussion include increasing the minimum capital requirements for fast credit firms, which currently stands at 500,000 euros. The proposed reforms also seek to curb aggressive debt collection methods and prevent individuals with criminal backgrounds from operating in the sector. Markov assured that consumer protections regarding late payments will remain intact.