site.btaRegulator Detects 1,147 Unequal Provisions in Quick Loan Agreements

Having received numerous complaints against non-banking financial institutions, in the fourth quarter of 2024 the Commission for Consumer Protection (CCP) analyzed 357 agreements between quick loan companies and their clients. The analysis revealed 1,147 unequal provisions in the general terms of the agreements, and the CCP took steps to have them removed or remedied, Economy and Industry Minister Petar Dilov said at question time in the National Assembly on Friday, responding to a question raised by MP Hristo Rastashki (MECh).

The CCP made recommendations to the respective companies urging them to revise or remove their unequal provisions within 14 days. About 85% of the non-compliant companies fulfilled the recommendations, Dilov said. Where companies failed to carry out the recommendations, the CCP decided that 14 class-action lawsuits will be filed against them. So far, the regulator has taken steps to file 10 class-action lawsuits expecting the courts to declare the respective provisions unequal. Three legal cases have been instituted.

The Economy Minister explained that the CCP has no power to declare the unequal provisions invalid or to discontinue their implementation by administrative means. A meeting is planned with the CCP chair to discuss the building of a preventive mechanism.