The main goal of the draft Consumer Credit Act currently being prepared is to harmonize Bulgarian legislation with the requirements of Directive (EU) 2023/2225 of the European Parliament and of the Council of 18 October 2023. This European act concerns consumer credit agreements and provides for the repeal of the previous Directive 2008/48/EC. In the context of this legislative preparation, a working meeting was held at the Ministry of Economy, Investments and Industry, bringing together representatives from business, consumer associations, as well as members of the legislative and executive branches.
Deputy Minister of Economy, Investments and Industry Levent Memish opened the discussion, emphasizing the pursuit of an optimal balance: "Our idea is clear – to find the balance and improve the draft law as much as possible for the benefit of consumers and businesses. Ultimately, we must have a functional product that is effective and applicable in society." Concluding the meeting, he added: "We believe that it is precisely through open dialogue with all stakeholders that we can improve any draft law and achieve the necessary balance between the interests of consumers, businesses, and the state," confirming that discussions on the raised issues will continue until the final adoption of the law.
During the meeting, several key proposals for the future regulatory framework were discussed in detail:
- Introduction of specialized registers for creditors and credit intermediaries under the management of the Commission for Consumer Protection (CCP), whereby the lack of registration would preclude the right to provide loans.
- Mechanisms for effective removal from the registers in cases of systematic non-compliance with the rules.
- Tightening requirements for credit institutions regarding their capital, risk management, organizational structure, and the professional qualifications of the individuals managing the companies.
- Refining the rules for assessing consumer creditworthiness and facilitating access to information to improve this process.
- Measures against unregulated market participants and curbing unfair practices, with the aim of creating a predictable environment for the sustainable development of the entire sector.