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KZP: Fast credit companies will be sanctioned

Fast credit companies in such a way hide the clauses that each contract must be thoroughly financial analyzed, commented Filipova

Nov 15, 2024 10:21 32

 KZP: Fast credit companies will be sanctioned  - 1

The Commission for Consumer Protection gave 14-day deadline for fast credit companies to eliminate unfair clauses in their contracts with consumers. The theme in "The Day Begins" the chairman of the commission, Maria Filipova, commented on BNT.

"I gave a 14-day period for the unequal clauses - it runs differently, from the date of receipt of the letter, but some are hiding and do not receive them. On some practices I have given immediate effect. If they do not comply with the unequal clauses, I will file a collective action within 14 days. Unfair practices can be appealed. However, if any non-banking financial institution dares to violate an effective order, it will be sanctioned for every single contract," Filipova said.

She explained that since taking office, she has received numerous alerts regarding fast loans.

"We start from the incomplete information in the form used to apply for a quick loan. Then the contract and its early termination, interest and APR, discrepancy with the contract information. Providing individual guarantors with incredible conditions to which they must comply".

Companies for fast loans in such a way hide the clauses that a thorough financial analysis must be done on each contract, commented Filipova. Often there is more than one repayment plan in the contracts, which confuses the user further. The chairman of the KZP also talked about ongoing cases of harassment and pressure from the companies:

"Here we are talking about people in a dead end and the mental harassment that occurs to them with the constant ringing and delivery of a letter-notification for which they want 50 BGN so that the user can get it. Employees employed by non-banking institutions visit people at their workplaces, stick name notes in front of their homes.

Maria Filipova also commented on the harsh position of the Bar Association after the announcement of the measures of the CCP:

"It is written in the constitution - citizens should be able to submit alerts, warnings and warnings to state authorities. In this case, KZP and I, as its chairman, are obliged to protect the interests of consumers precisely from violations of the normative acts. Here the problem is with the consumer and the so-called quick loans. The Bar Association has all my respect".