The Association for Responsible Non-Bank Lending (AONK) has condemned threats and strong-arm methods used to collect debts from quick loans. It spoke out after a case in Tsarevo, where a couple were threatened with physical violence over unpaid debts.

A 48-year-old man and his 45-year-old partner went to the police on 4 November at about 2:15pm. They owe money to two quick-loan companies.

How it started: Police in Tsarevo detain three from a quick-loan firm after a couple's complaint

Police identified three people linked to the threats: a 47-year-old man from Sliven and a 40-year-old man from Tsarevo, both with criminal records, and a 36-year-old woman from Ahtopol. Officers searched the offices of the two firms, plus a home and a car the three use. They seized computer equipment and six mobile devices in all. Pre-trial proceedings have been opened.

AONK calls such practices unacceptable. The association says some finance firms hand their licences to other people and work on the edge of the law. It says these schemes can become a cover for local loan sharks. This damages trust in the sector and breaks the rules of responsible lending, the group says.

AONK backs the tougher rules in the draft new Consumer Credit Act, including higher capital requirements for firms. But it warns that some of the provisions could backfire. They could push lawful firms out of the market and open the way for more illegal loan-sharking.

AONK names the limits on access to registers and the planned price caps as risky. It wants experts to review the changes to the law. It also wants action right away against the grey economy in quick loans.