site.bta National Ombudsman Manolova Proposes Reducing Private Enforcement Agents' Fees

National Ombudsman Manolova Proposes Reducing Private Enforcement Agents' Fees

Sofia, August 29 (BTA) - National Ombudsman Maya Manolova said here during a Monday news conference that she will submit to Parliament proposed amendments to the Code of Civil Procedure, according to one of which, the fees collected by private enforcement agents can not exceed the amount of the debt.

The proposed legal amendments concerning private enforcement agents' fees will be submitted in two versions, the second of which does not allow for the fees to exceed half of the debt, Manolova said.

The Ombudsman also proposes that debtors be allowed to dispute the appraisals of real estate properties which are auctioned off. The proposed amendments aim to update legal texts which settle inaccessible income, because they are outdated and calculated based on a monthly minimum wage of 220 leva.

Manolova said that since the start of this year, she has received 413 complaints about illegal actions by private enforcement agent offices.

The proposed legal changes concern the cases in which companies charge huge legal fees in court and enforcement proceedings. According to her, the possibility for debtors to pay the legal fees should be scrapped, because the legal advisors working for those companies get paid salaries.

Last Wednesday, private enforcement agents declared themselves for a waiver of the fees which company legal advisers charge if debtor payments are in arrears. The Bulgarian Chamber of Private Enforcement Agents and the National Ombudsman argue that this will drastically reduce costs for respondents in such cases. Currently, a legal adviser fee of as much as 650 leva may be charged on a debt of 50 leva. Add to this the fees for private enforcement agents and interest, and the total amount payable may reach 1,000 leva.

The Ombudsman will also submit to Parliament proposed amendments to the Student and Doctoral Student Crediting Act, the Management of the Financing under the European Structural and Investment Funds Act, the Family Code, the Energy Act, the Food Act, as well as a bill on volunteering.