The debtor may only repay the principal amount of a consumer loan and not owe interest or penalties if the creditor has not assessed his creditworthiness. This is one of the proposals that “Progressive Bulgaria“ will submit between the first and second readings of the new Consumer Credit Act.
The bill was adopted on the first vote by the 52nd National Assembly on September 23. 124 deputies voted in favor, 64 were against, and 11 abstained. The texts have not yet been finally adopted.
Only the principal in the absence of verification
Konstantin Prodanov from “Progressive Bulgaria“ stated that the current rules oblige creditors to thoroughly check the financial condition of the potential debtor, but there is no sufficiently serious sanction for non-compliance.
According to him, the proposal aims to stop the practice of granting loans to people who cannot service them, after formal or fictitious checks on the credit status.
Limitations on fees and interest
Among the other ideas is the introduction of an explicit definition of „early repayment“ - a measure that, according to the proponents, should interrupt the accumulation of debts in case of default.
Konstantin Prodanov also indicated that the rule that interest on late payments cannot exceed the legal interest rate will be returned. According to the information presented by him, the legal interest rate on overdue loans is currently over 10 percent.
It is also proposed that creditors cannot collect, demand or receive fees and commissions for activities that are part of the usual processing of the loan. The bill also provides for a distinction between small and large loans, with a small loan being up to the amount of two minimum wages.
New relationship between the Consumer Protection Commission and the BNB
„Progressive Bulgaria“ proposes a mandatory exchange between the Consumer Protection Commission and the Bulgarian National Bank. In case of established systemic violations, the CPC will have to send a notification to the Bulgarian National Bank with a request to deregister the relevant financial institution, and the central bank will have to respond within a certain period.
A ban on the franchise model for quick loan companies is also proposed. According to MP Zdravko Markov, only companies that have received a license should have the right to grant such loans, and not third-party operators operating through assigned rights.
The proposals are to be discussed within the framework of the procedure between the first and second reading. The draft law on consumer credit was submitted by the Council of Ministers on September 11, 2026.