Nikola Stojanov: Nationwide Checks on Pay-Day Loan Companies Begin

Nikola Stojanov: Nationwide Checks on Pay-Day Loan Companies Begin

Nationwide inspections of non-banking financial institutions are launched to ensure that they respect consumers’ rights under fast credit agreements. This was announced by the Minister of Economy and Industry Nikola Stojanov. As of today, teams of the Commission for Consumer Protection will start on-site inspections at the offices of these companies.

In recent months, the CCP has carried out a preliminary review of the contracts and accounting documents of companies operating in the country. 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 numerous reports of unclear or confusing terms in contracts, misleading information, etc. An attempt has been made in the past to address the problem through a new law. However, expert analysis shows that the root of the problem is lack of control and prevention. Companies have been allowed to insert unregulated clauses in their contracts to which consumers have bound themselves. After the signing of the contract by both parties, there is in fact a legal basis for collecting unfair trade practices claims.

Therefore, the main objective 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 information and guarantees for consumers of fast loans.