The Ministry of Economy, Investments and Industry held a working meeting with representatives of the legislative and executive branches, the business community, consumer protection associations and other stakeholders. The meeting was organised in connection with the new Consumer Credit Act.
“Our objective is clear – to strike the right balance and improve the draft legislation as much as possible in the interests of both consumers and businesses. Ultimately, we need a workable piece of legislation that is effective and applicable in practice,” Deputy Minister of Economy, Investments and Industry Levent Memish said at the start of the discussion.
The draft Consumer Credit Act aims to transpose into Bulgarian law the requirements of Directive (EU) 2023/2225 of the European Parliament and of the Council of 18 October 2023 on credit agreements for consumers and repealing Directive 2008/48/EC.
During the discussion, participants considered mechanisms for supervising the activities of creditors and credit intermediaries, the need for clear rules on assessing consumers’ creditworthiness, as well as measures to curb unfair practices and the activities of unregulated market participants.
Among the proposals discussed was the introduction of a register of creditors and a register of credit intermediaries, to be maintained by the Commission for Consumer Protection (CCP). It was proposed that persons who are not registered should not be permitted to provide consumer credit and that an effective mechanism should be put in place for removing entities from the register in cases of systematic infringements.
Emphasis was placed on the need for a predictable and appropriate regulatory environment that creates conditions for the sustainable development of the sector while ensuring consumer protection. Proposals included stricter requirements for creditors and credit intermediaries, including with regard to capital requirements, organisational structure, risk management and requirements applicable to persons responsible for managing the companies.
Representatives of the organisations also expressed support for better access to information to enable more accurate assessments of consumers’ creditworthiness and limit opportunities to circumvent the regulatory framework.
In conclusion, Deputy Minister Memish emphasised that dialogue between the institutions, the business community and consumer representatives would continue, with the aim of discussing the issues raised and identifying workable solutions before the legislation is adopted. “We believe that it is precisely through open dialogue with all stakeholders that we can improve every piece of draft legislation and achieve the necessary balance between the interests of consumers, businesses and the state,” Deputy Minister Memish said.