New Amendments Introduced to Consumer Credit Act

Business » FINANCE | July 22, 2014, Tuesday // 12:44| Views: | Comments: 0
  • Send to Kindle
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.

Finance » Be a reporter: Write and send your article
Tags: Consumer Credit Act, amendments, mortgage loans, interest rate, penalty All Are Welcome! Join Now!
Please, log in to post a comment.
» To the forumComments (0)
Bulgaria news (Sofia News Agency - is unique with being a real time news provider in English that informs its readers about the latest Bulgarian news. The editorial staff also publishes a daily online newspaper "Sofia Morning News." (Sofia News Agency - and Sofia Morning News publish the latest economic, political and cultural news that take place in Bulgaria. Foreign media analysis on Bulgaria and World News in Brief are also part of the web site and the online newspaper. News Bulgaria