Name of law Law amending and supplementing the law on consumer credit bill name a bill amending and supplementing the law on consumer credit acceptance date 09/04/2014 number/year Official Gazette 35/2014 Decree No 75
On the grounds of art. 98, paragraph 4 of the Constitution of the Republic of Bulgaria
To be published in the Official Gazette the law amending and supplementing the law on consumer credit HLÌI, adopted by the National Assembly on 9 April 2014.
Issued in Sofia on April 15, 2014.
The President of the Republic: Rosen Plevneliev
Stamped with the State seal.
Minister of Justice: Zinaida Zlatanova
to amend the consumer credit Law (promulgated, SG. 18 of 2010; amend., SG. 58 of 2010, issue 91 by 2012 and 30 of 2013)
§ 1. In art. 4 is hereby amended as follows:
1. In paragraph 8. 1:
a) in paragraph 1 the words ' less than $ 400. or "shall be deleted;
b) in item 2 and 3 the words "the provisions of art. 5, 6, 16, 18, 25 and 33 (a) "are replaced by" the provisions of articles 5 and 6 respectively. 5, 6, art. 9, para. 3 and 4, art. 10, 10A, art. 11, para. 1, item 1-7, 9-20 and 22-27 and al. 2, 3 and 4, art. 14, 16, 17, 18, 25, art. 32, para. 1, 2, al. 3, paragraphs 1 and 2 and al. 5 – 8, art. 33, 33A and § 1 of the additional provisions ".
2. in the Al. 2 the words "art. 11, para. 3 "shall be replaced by" art. 11, para. 4. "
§ 2. In art. 5, al. 4 after the number "13" insert "as well as the general terms and conditions", the word "provide" shall be replaced by "provided", after the words "information" and "be added to the general terms and conditions" and the words "size, type and format the font" are replaced by "type, format and font size – not less than 12.
§ 3. In art. 10 make the following amendments and additions:
1. Paragraph 1 shall be amended as follows:
(1) the contract of consumer credit shall be concluded in writing, on paper or on another durable medium, in a clear and understandable manner, all the elements of the contract are presented with equal in type, format and font size – not less than 12, in two copies-one for each of the parties to the contract. "
2. Al are created. 4 and 5:
"(4) a unilateral change of the total cost of the credit to the consumer shall be granted when the following circumstances are simultaneously present:
1. a credit agreement expressly provided for the possibility of increasing and reducing the total cost of the credit;
2. the circumstances applicable to the change in the total cost of the loan, are described in the Treaty are objectively justified and does not depend on the will of the creditor.
(5) any agreement contrary to the conditions laid down in para. 4 or surrounds them, is null and void. "
§ 4. Art is created. 10A:
"Art. 10. (1) a creditor may collect from user fees and commissions for additional services relating to the consumer credit contract.
(2) a lender may not require the payment of fees and commissions for actions related to the absorption and management of credit.
(3) the creditor cannot collect more than one fee and/or Commission for the same action.
(4) the type, size and operation, which collected fees and/or commissions must be clearly and precisely defined in the contract of consumer credit. "
§ 5. In art. 11 the following amendments and supplements shall be made:
1. In paragraph 8. 1 item is created:
"9A. the methodology for the calculation of the reference interest rate in accordance with art. 33A; ".
2. a new paragraph. 2:
"(2) the terms and conditions are an integral part of the contract of consumer credit, and each page shall be signed by the parties to the contract."
3. the Previous para. 2 and 3 become respectively al. 3 and 4.
4. a para. 5:
"(5) If a credit agreement under art. 4, al. 1, 2 and 3 the creditor is obliged to provide the user with a choice:
1. to enter into a contract for a loan in which the lender is covered fully and definitively to the extent of the collateral to the contract after the enforcement on the collateral by a court order or after the sale of the consumer with the consent of the creditor or
2. to conclude the credit agreement, in which enforcement at the user responsibility under art. 133 of the law on obligations and contracts. "
§ 6. In art. 19 create al. 4, 5 and 6:
"(4) the annual percentage rate of charge may not be higher than five times the amount of statutory interest on arrears in BGN and currencies laid down by Decree of the Council of Ministers of the Republic of Bulgaria.
(5) Clauses in a contract in excess of those specified in para. 4, shall be deemed null and void.
(6) Where payments under contracts that contain clauses which are declared null and void under para. 5, overpayment means above the threshold referred to in paragraph 1. 4 be withheld in subsequent payments on the loan. "
§ 7. In art. 22 after the number "20" insert "and al. 2. "
§ 8. Art is created. 29A:
"Art. 29. Article 29 shall not apply to credit agreements with a total amount of less than EUR 400. "
§ 9. In art. 32 make the following amendments and additions:
1. In paragraph 8. 5 Add "Al respectively. 8. "
2. in the Al. 7 the words "para. 4 and 5 "are replaced by" para. 4, 5 and 8.
3. a para. 8:
"(8) the creditor is not entitled to compensation or a penalty for early repayment of a credit agreement under art. 4, al. 1, 2 and 3, where the credit is redeemed after repayment of 12 monthly instalments from its absorption. Outside of this case, the creditor is entitled to fair and objectively justified compensation for possible costs directly linked to early repayment of the loan, amounting to 1% of the amount repaid before the end of the loan. "
§ 10. Article 33 (a) shall be replaced by the following:
"Art. 33. (1) a lender shall apply the reference rate determined by the it methodology.
(2) the procedure under para. 1 contains clear and signed computational procedure (formula), indicating the type, the quantitative expressions and relative weight of the various components (market indices and/or indicators).
(3) the procedure under para. 1 describes the contract of consumer credit and cannot be changed unilaterally by the creditor after its conclusion.
(4) the creditor shall publish on its website the methodology and the size of the reference interest rate referred to in paragraph 1. 1. "
§ 11. In art. 45, para. 1 the words "art. 10, para. 2 and 3 ' shall be replaced by "art. 10, art. 10.
§ 12. In § 1 of the additional provisions are made the following amendments and additions:
1. item 5 shall be inserted: ' 5a. " Variable interest rate on the loan is the interest rate provided for in the provision of the credit agreement under which the creditor and the consumer agree that the law applicable to the contract for the loan interest rate is formed on the basis of a variable component (reference rate) and a fixed allowance. The flat-rate allowance cannot be changed unilaterally for the whole duration of the credit agreement. "
2. Point 6 is replaced by the following:
"6." reference interest rate "means the interest rate, used as a basis for the calculation of the applicable to the contract for consumer loan variable interest rate on the loan. It is a market index LIBOR, EURIBOR, SOFIBOR and/or indicators, published by the Bulgarian National Bank and/or the National Statistics Institute, or a combination of them. "
Transitional and final provisions
§ 13. Provisions of this law shall not apply to credit agreements existing on the date of its entry into force, except in respect of fees, benefits or penalties under § 9, paragraph 3 of this law.
§ 14. In the law on credit institutions (official SG. 59 06; amend., 105/2006, no. 52, 59 and 109 from the 2007 No. 69 since 2008, no. 23, 24, 44, 93 and 95 of 2009, 94 and 101 of 2010 and 77/105 from 2011, and 38/44 by 2012. , PC. 52, 70 and 109 in 2013, PCs. 22 and 27 by 2014) make the following changes and additions:
1. In art. 60:
a) a new para. 5:
"(5) When the credit agreement is concluded under the terms of art. 11, para. 5, item 1 of the law on consumer credit, the creditor is covered fully and definitively to the claims of the credit with receipt of the amount from the sale of the property. ";
(b)) the current al. 5 it al. 6 and the second sentence: "in the same time and under the same conditions, shall be deleted, the security on the property under para. 5. "
2. In art. 67:
a) a new item 6:
"6. the General conditions which the Bank applied in banking transactions, amendments to them;"
(b)) the current item 6 becomes item 7.
§ 15. The law shall enter into force three months after its promulgation in the State Gazette.
The law was adopted by the 42nd National Assembly on 9 April 2014 and is stamped with the official seal of the National Assembly.
President of the National Assembly: Mihail Mikov