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Inspections of non-bank financial institutions for the good faith respect of consumers' rights under concluded agreements for fast loans are launched across the country. This was announced by the caretaker Minister of Economy and Industry Nikola Stoyanov. As of today, teams of the Commission for Consumer Protection begin on-site inspections at the offices of these companies, the Ministry said.
In recent months, the Commission has carried out a preliminary review of the contracts and accounting documents of the companies operating in Bulgaria. It shows the existence of serious violations, including unfair commercial practices and non-compliance with the Consumer Credit Act, which distort the market.
The reason for the inspections are also many signals of unclear or confusing conditions in contracts, misleading information, etc. In the past, an attempt has been made to solve the problem through a new law, the ministry reminded. However, expert analysis shows that at the heart of the problem is the lack of control and prevention. Companies have been left to lay down unregulated clauses in their contracts to which consumers have been bound. After the signing of the contract by both parties, there is actually a legal basis for collecting receivables from unfair commercial practices.
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Therefore, the main purpose of the inspections is to eliminate all such illegal practices in order to protect the rights of customers as much as possible. It will also aim to achieve better awareness and guarantees for consumers of payday loans.
In mid-May, the BNB announced that the payday loans granted by companies specializing in lending (also known as payday loan companies) amounted to EUR 4.64 billion. Lv. at the end of March, while for the same period last year - 3.9 billion. Lv. The increase is 733m euros. Lv. or by 18.8 per cent on an annual basis.