Parliament Adopted at Second Reading the Bill on Credit Servicers and Credit Purchasers

The Parliament on June 5 adopted at second reading the draft law on credit servicers and credit purchasers. The main objective is to encourage the development of the secondary market for non-performing loans granted by credit institutions, while at the same time ensuring the protection of borrowers' rights.

Among the adopted provisions was the decision to remove proposed amendments to the Private Enforcement Agents Act, which would have allowed enforcement agents to act as debt collection traders. Companies that purchase non-performing loans will be allowed to collect them, but only after obtaining a license from the Bulgarian National Bank, lawmakers decided.

Debt collection firms will also be required to respect and protect the privacy of consumers—for example, they must not call between 8:00 p.m. and 7:00 a.m., or on weekends and public holidays.