The annual percentage rate (APR) on a loan may not exceed five times the statutory interest rate on overdue euro- and foreign-currency liabilities, Parliament decided Wednesday at first reading of a bill amending the Consumer Credit Act.
The bill, submitted by the Council of Ministers, was approved by 124 votes to 64, with 11 abstentions. It was supported by Progressive Bulgaria, while GERB-UDF, Democratic Bulgaria, Continue the Change and Vazrazhdane voted against it. The MRF abstained, as did one GERB-UDF MP.
The provision will not apply to loans with a total amount of up to three minimum monthly wages for the country, as determined at the time the loan is granted. The bill transposes the requirements of a 2023 EU directive on consumer credit agreements, aiming to strengthen consumer protection while bringing legislation into line with technological developments and new credit products. It expands requirements concerning information provided in contracts and advertisements, as well as the professional conduct of creditors and credit intermediaries.
The bill proposes extending the scope of the legislation to loans of up to EUR 100,000. It would also cover certain short-term loans, overdrafts, interest-free loans and “buy now, pay later” schemes. Higher requirements for assessing borrowers’ creditworthiness are envisaged in order to limit the risk of over-indebtedness, according to the bill’s explanatory memorandum.
The bill also prohibits the provision of unsolicited credit, including the sending of pre-approved credit cards and unilateral increases in credit limits without a prior request and explicit consent from the consumer.
The Commission for Consumer Protection will also establish and maintain a register of credit intermediaries and a register of creditors providing consumer credit.
Parliament Approves Consumer Credit Bill at First Reading, Caps APR at Five Times Legal Interest Rate THE NEWS FROM BULGARIA – NEWS AGENCY 2009-2025 2026-09-23 11:44:26
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