MP Delyan Peevski Calls On Tighter Ccontrol over Fast Loans Companies

Delyan Peevski, leader of “MRF–New Beginning”, has called for stricter control and tougher sanctions on fast loans. He said the sector should move towards licensing of companies, stricter regulation of interest rates, and clear rules for each type of credit.

Peevski proposed the creation of a digital platform within the Bulgarian National Bank’s credit registry, where all issued loans would be reported in real time, as well as a compensation fund for victims of unfair practices by fast loan companies.

“Recent media reports remind us that there is still no solution to a problem affecting many people who fall into the trap of ‘easy money’, unable to service their loans or accumulating debts that put their only property or income below the subsistence level at risk.

This is a highly sensitive issue, and the state cannot remain indifferent,” Peevski said.

He urged the relevant institutions – the Ministry of Finance, the Bulgarina National Bank, the Commission for Consumer Protection, and the State agency for National Security (SANS) – to immediately activate procedures and tighten supervision over non-bank credit institutions. He also called for legislative proposals to be submitted to Parliament at the start of the autumn session.

“Regulations, oversight, and sanctions must be revised to effectively protect people. In line with European requirements, licensing of the companies themselves, stricter interest rate controls, and rules for each category of credit are needed. This will stop unfair practices such as false ‘business loans’, which currently strip borrowers of consumer protections.

Monitoring fees and commissions, along with caps on interest rates, will ensure a fair competitive environment while protecting consumers from fraud.

A digital platform for the credit registry at the BNB, with real-time reporting of all loans, will prevent abuse and malicious schemes.

The creation of a compensation fund for victims of unfair practices by fast loan companies will provide a tool for responding effectively to every confirmed case of abuse,” he added.