Bulgarian MP: People Don't Think When They Take A Credit
“The Bulgarians don't think what will they do, when they take a credit”, said Georgi Kadiev, Bulgarian Socialist Party MP.
“Those people need someone to protect them from themselves, because they don't think,” he added in an interview for Nova TV, regarding the amendments to the Consumer Credits Act, aiming to cap the interest rates at 50.5% per year.
According to Kadiev, many of the fast credit companies take advantage of people who do not have another choice or do not have enough financial education to realize what they're getting themselves into. In Kadiev's opinion such companies gain “blood money”.
“Currently there are 190 companies for fast credits in Bulgaria,” he said. “The interest rates have to be ethical, not as it is now in some cases – 60% per month or 1200% per year.”
Kadiev admitted that not all companies are such and urged for the introduction of some form of control for those companies, who are only licensed now.
According to him, the MPs who disagree with the proposed limits on interest rates have some reasonable arguments, but common good was of higher priority.
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In some western EU countries these credit companies offer 'payday' loans, which means you must repay the loan with your next paypacket or there will be huge interest levied. I have noticed a huge increase in the number of credit companies in Bulgaria over the last year and these companies will destroy the lives of ordinary people who feel they must have the latest iphone or biggest car and replace these as soon as they see someone else with the latest or better version.