Bulgarian Parliament debates new consumer credit regulations

The Bulgarian Parliament is debating new regulations for consumer credit aimed at tightening rules for fast loans and preventing over-indebtedness. The proposed legislation, introduced by the Council of Ministers, seeks to implement an EU directive that Bulgaria failed to meet by November 2025, potentially risking financial sanctions.

Key measures include setting a cap on total costs for certain short-term loans and loans up to three minimum wages. The bill proposes banning unsolicited credits, the sending of pre-approved credit cards, and unilateral limit increases without explicit consumer consent. To combat the link between fast loans and gambling addiction, the law may restrict lending during late-night hours and require higher statutory capital and clean criminal records for employees of lending firms.

Additionally, the bill mandates stricter creditworthiness assessments and requires lenders to have procedures for assisting clients in financial distress, such as refinancing or payment deferrals. The Commission for Consumer Protection would also provide guidance to citizens facing repayment difficulties. While supporters argue the law will eliminate predatory ‘garage operators’ and illegal fees, opposition members have raised concerns regarding potential lobbying and the impact on low-income populations.