New Amendments Introduced to Consumer Credit Act

Business » FINANCE | July 22, 2014, Tuesday // 12:44| Views: 706 | Comments: 0
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Bulgaria: New Amendments Introduced to Consumer Credit Act File photo.

Bulgarians will pay fewer fees when getting a new loan after the amendments to the Consumer Credit Act come into effect as of July 22.

These include the fees for utilization and management, and the penalty interests for repayment of mortgage loans, Nova TV informs.

The changes will apply to existing contracts, too. If a customer repays their mortgage early in the first 12 months of the term of the loan, the fee will be up to 1%. Previously it has reached 5%.

The changes concern the so-called fast loans, as well. The most important change is the new annual percentage rate ceiling - no more than five times the legal interest rate. The penalties for delayed payments will also increase.

There are certain indications of appreciation of credit product elements, but generally the expectations are not for the appreciation of the entire loan, financial analyst Ivan Stoykov told Bulgarian National Radio in connection with the forthcoming amendments to the Consumer Credit Act.

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Tags: Consumer Credit Act, amendments, mortgage loans, interest rate, penalty
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