site.btaConsumer Protection Commission Files 20 Class Actions against Quick Loan Companies for Unfair Clauses

The Consumer Protection Commission (CPC) continues to take action against the identified unfair clauses in consumer credit contracts in the non-banking financial institution sector. As a result of inspections and analyses, the CPC has filed five new class actions to declare unfair clauses null and void, bringing their total number to 20, the Commission said on Friday.

In the last quarter of 2024, the CPC conducted a large-scale analysis of 357 general terms and conditions and standard contracts of non-banking financial institutions. Out of 21,308 checked clauses, 1,147 were identified as unfair. In response, Commission for Consumer Protection (CPC) Chair Maria Filipova sent letters to the relevant companies, demanding the removal of these clauses within 14 days. About 85% of non-banking companies complied with the requirements of the CPC and voluntarily corrected the unfair clauses in their contracts. In cases where the companies refused to take corrective measures, the CPC filed class actions to protect the interests of the affected consumers.

In compliance with court rulings, the Commission will publish information about the filed class actions on its official website, ensuring full transparency of the process, the CPC added.

In mid-December last year, the CPC initiated a procedure for filing class  actions against some of the companies for quick loans due to 122 unlawful clauses that had not been removed.