Consumer Credit Law

Original Language Title: Закон за потребителския кредит

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Name of law consumer credit law Named the Bill the consumer credit Bill Date of adoption the 18/02/2010 number/year Official Gazette 18/2010 Decree No 44

On the grounds of art. 98, paragraph 4 of the Constitution of the Republic of Bulgaria

I DECLARE:

To be published in the "Official Gazette" consumer credit Law, passed by the National Assembly of the HLI, 18 February 2010.

Issued in Sofia on 1 March 2010.

The President of the Republic: Georgi Parvanov

Stamped with the State seal.

Minister of Justice: Margarita Popova

LAW

the consumer credit

Chapter I GENERAL PROVISIONS art. 1. This law governs:

1. requirements to the Treaty for consumer credit, including when it is concluded through an intermediary, as well as to the promotion of this type of contract;

2. pre-contractual information requirements and the method of calculation of the annual percentage rate of charge in a contract referred to in paragraph 1;

3. the right of consumers to withdraw from the contract for consumer credit, as well as the early repayment of obligations;

4. the right of access to out-of-court procedures for the resolution of disputes relating to a contract of consumer credit.

Art. 2. the purpose of the law is to protect consumers by creating equal legal conditions for obtaining consumer credit, as well as through the promotion of responsible behaviour on the part of lenders in the provision of consumer credit.

Art. 3. (1) the provisions of the law shall also apply in cases where between the consumer and the creditor have concluded a number of the credit agreement, the total amount exceeds the maximum size specified in art. 4, al. 1, item 1, or whose conclusion is with the object or effect of circumventing the requirements of the law.

(2) the provisions of law shall apply to credit agreements in the form of an overdraft facility, when the loan must be repaid within a period longer than three months.

(3) the provisions of the Act apply to contracts for the rental or lease, which provides for the possibility of purchasing the product covered by the contract.

Art. 4. (1) the provisions of the Act do not apply to:

1. credit agreements with a total amount of less than $ 400. or greater than 147 000 EUR or the equivalent in another currency using the exchange rate of the Bulgarian National Bank on the date of conclusion of the contract;

2. credit agreements or contracts for mediation for the provision of credit, secured by mortgage or other comparable collateral on immovable property; for this type of contracts shall apply the provisions of art. 5, 6, 16, 18 and 25;

3. credit agreements and/or brokerage contracts for the provision of credit for the purpose of acquiring or retaining property rights in land or other immovable property, including the building that was built or to be built; for this type of contracts shall apply the provisions of art. 5, 6, 16, 18 and 25;

4. hire or leasing agreements which do not provide for an obligation to purchase the product covered by the contract or in the contract or in any other agreement between the parties; It is believed that an obligation to purchase the product covered by the contract, exists, if the contract was made the lender to unilaterally decide to transfer ownership;

5. credit agreements that are not charged interest or other charges to the consumer;

6. credit agreements with a term of up to three months and caused minor costs;

7. credit agreements granted by the employer to the workers and employees outside the scope of its main activities, on which no interest will be charged or the annual percentage rate of charge is lower than that prevailing on the market and which are not available to users on a general basis;

8. credit agreements concluded with an investment firm within the meaning of the law on markets in financial instruments, or with a credit institution within the meaning of the law on credit institutions, in order to enable the investor to realize with sdelka one or more financial instruments within the meaning of the law on markets in financial instruments, where the investment firm or credit institution granting credit , participate in such sdelka;

9. credit agreements which were achieved as a result of the settlement of the dispute in a Court of law or as a result of a settlement reached before the other authority established by law;

10. credit agreements which relate to the deferred payment of the existing debt, for which the consumer does not owe costs;

11. credit agreements upon the conclusion of which the consumer is obliged to provide as a security expert for storage when the creditor and the consumer's liability is strictly limited to the supplied item;

12. credit agreements granted to limited persons under legal provisions for public benefit, with interest rates lower than the prevailing on the market that are without interest, with interest rates no higher than the market, or on other terms which are more favourable to the consumer than those applied on the market;

13. credit agreements provided by mutual associations and their members, without interest or in the interest rate, lower than the prevailing market;

14. credit agreements in the form of an overdraft facility with one month to settle the obligation, except in the cases under art. 8, al. 7.


(2) the provisions of the Act, with the exception of the provisions of paragraph 6. 1, item 14, and of art. 1, 2, 3, 7, 8, art. 9, para. 1, art. 10, art. 11, para. 3, art. 12, art. 15-24, art. 25, para. 1, item 1-3, para. 2, 3, 5 and 6, art. 26-28, art. 36-48, 50, 52-55, and § 1, item 1-11 of the supplementary provisions shall not apply to credit agreements in the form of an overdraft facility, when the loan must be repaid on demand or within three months.

(3) the provisions of the Act, with the exception of the provisions of art. 1, 2, art. 3, al. 2, art. 9, 13, 2024, 37-44, 46, 52-55, and § 1, item 1-11 of the supplementary provisions shall not apply to contracts for opening an account credit, under which it is possible for a user to exceed the availability of the account or of the agreed amount of ov″draft.

Chapter two

THE PROVISION OF PRE-CONTRACTUAL INFORMATION

Section I

General requirements

Art. 5. (1) before the consumer is bound by a proposal or contract for the provision of consumer credit, the creditor or credit intermediary shall provide the user in a timely manner in accordance with the preferences expressed by him and based on the conditions offered by the creditor of the contract the information needed to compare different offers and for making an informed decision to contract for consumer credit.

(2) the information referred to in para. 1 shall be provided in the form of a standard European form for the provision of information on consumer credit, in accordance with Annex 2.

(3) in the cases under art. 4, al. 1, 2 and 3 the creditor or credit intermediary provides the consumer with pre-contractual information content according to annex 4.

(4) the information referred to in para. 1, 2, 3, 9 and 13 shall be provided to the user free of charge, on paper or on another durable medium, in a clear and understandable manner, all the elements of information are presented with equal in size, type and font format.

(5) the forms containing the contractual information under para. 2 and 3 must be completed in full by the creditor.

(6) the creditor shall provide the pre-contractual information of the Bulgarian language.

(7) any additional information which the creditor wishes to provide to the consumer, shall be presented in a separate document which may be annexed to the standard European form under para. 2 for information on consumer credit.

(8) the creditor is obliged to put in a conspicuous place on the premises of the customer service at the disposal of interested parties information in writing concerning the terms and conditions, tariffs and the terms under which it provides consumer loans.

(9) in the provision of consumer credit from a distance the creditor provides the user with the standard European form in accordance with Annex 2.

(10) when using the phone as a means of communication or other means of voice communication from a distance the creditor provides the user in addition to the information referred to in art. 9 of the law on the provision of financial services at a distance and information about:

1. the total amount of credit and the conditions for its absorption;

2. the duration of the credit agreement;

3. the product or service and its cash price-the case of a credit in the form of deferred payment for a specific good or service and in related contracts;

4. the borrowing rate, the conditions governing its application and any index or reference rate, linked to the initial borrowing rate, as well as the periods, conditions and procedures for changing the borrowing rate; When depending on the circumstances, different interest rates, this information is provided for all the applicable rates;

5. the amount, number and frequency of payments to be made payable by the consumer and, where appropriate, the order in which instalments will be allocated to repay the different outstanding balances charged at different rates, with the purpose of payment of the loan;

6. the annual percentage rate of charge by means of a representative example annotated;

7. the total amount payable by the consumer.

(11) upon request by the user in advance and the creditor shall provide free of charge a copy of the draft credit agreement. If at the time of the request unwilling to proceed to the conclusion of the credit agreement, it can refuse to provide such specimen.

(12) subject to a credit agreement under which payments made by the consumer do not give rise to an immediate corresponding repayment of the total amount of credit, but are used for forming of the creditor, in the periods and under conditions laid down in the credit agreement or in an ancillary agreement, the pre-contractual information shall be indicated clearly and understandable that for this type of credit agreements do not provide for a guarantee by a third party as security for repayment of the total amount of credit uptake in the credit agreement, unless such a guarantee is provided.

(13) where the contract for the provision of consumer credit has been concluded on the initiative of the user through the use of means of distance communication as defined in the law on the provision of financial services at a distance, which does not allow the provision of pre-contractual information on paper or on another durable medium, and in the cases referred to in para. 10, the creditor, credit intermediary respectively, provide pre-contractual information by means of the form referred to in paragraph 2 immediately after the conclusion of the contract of consumer credit.


Art. 6. The creditor, credit intermediary respectively, provide adequate explanations to consumers, enabling them to assess whether the proposed credit agreement is consistent with their needs and financial status, and explains the pre-contractual information under art. 5 to be provided, the main characteristics of the products and the impact that may have on the consumer, including the consequences in the event of late payment by the user.

Art. 7. (1) the provisions of art. 5, 6 and 8 shall not apply to suppliers of goods or services acting as credit intermediaries when their activity as credit intermediaries is not the main subject of their commercial or professional activity.

(2) in the cases referred to in para. 1 the creditor provides the user the full pre-contractual information.

Section II

The provision of pre-contractual information in contracts for overdraft

Art. 8. (1) before the consumer is bound by a proposal or contract for an overdraft, the creditor and, where applicable, the credit intermediary shall provide the user in a timely manner on the basis of the preferences expressed by him and the proposed terms of the contract by the creditor required information allowing comparison of different offers for conclusion of a contract for an overdraft facility for making an informed decision.

(2) the information referred to in para. 1 shall be provided in the form of a standard European form for submitting information about contracts for overdraft under annex 3.

(3) the information referred to in para. 1, 2, 6 and 10 shall be provided to the user free of charge, on paper or on another durable medium, in a clear and understandable manner, all the elements of information are presented with equal in size, type and font format.

(4) the form containing the contractual information under para. 2, must be fully completed by the creditor.

(5) the creditor shall provide the pre-contractual information of the Bulgarian language.

(6) in the provision of an overdraft facility in the form of a financial service at a distance the creditor provides the standard European form under para. 2.

(7) when using the phone as a means of communication or other means of voice communication at a distance, when the user wants to obtain overdraft immediately, the supplier provides the user in addition to the information referred to in art. 9 of the law on the provision of financial services at a distance and information about:

1. the total amount of credit;

2. the borrowing rate, the conditions governing its application, any index or reference rate, linked to the initial borrowing rate, the relevant expenses from the conclusion of the contract for an overdraft facility and where applicable, the conditions under which costs may be changed;

3. the annual percentage rate of charge, illustrated by means of representative examples mentioning all the assumptions used for the calculation of the annual percentage rate of charge;

4. the ability to be requested by the user at any time to repay the loan in full;

5. the term of the contract for an overdraft facility.

(8) at the request of the creditor shall provide the consumer free of charge in addition to the information referred to in paragraph 1. 1, 6 and 7 and a copy of the draft Treaty on the overdraft facility, containing the information referred to in art. 12. (9) the provisions of para. 8 shall not apply in cases where at the time of the request unwilling to proceed to the conclusion of a contract for an overdraft facility.

(10) where the contract for an overdraft was concluded on the initiative of the user through the use of means of distance communication as defined in the law on the provision of financial services at a distance, which does not allow the provision of pre-contractual information under para. 1 and 2 and, in the cases referred to in para. 7, the creditor, credit intermediary respectively, shall provide the information referred to in para. 1 and 2 immediately after the conclusion of the contract for an overdraft facility.

Chapter three

CONSUMER CREDIT CONTRACT. Form and content of art. 9. (1) the contract is a consumer credit contract, on the basis of which the creditor grants or promises to grant credit to the consumer in the form of a deferred payment, loan or any other similar form of convenience for payment, with the exception of contracts for the provision of services or for the supply of goods of the same kind for an extended period of time, where the consumer pays the value of the services goods, respectively, by carrying out periodic instalments throughout the duration of their provision.

(2) the parties to the Treaty on consumer credit are the consumer and the creditor.

(3) the user is any natural person who, in the conclusion of a contract of consumer credit act outside the framework of his professional or trade activity.

(4) the Lender is any natural or legal person who grants or promises to grant credit in the course of his professional or trade activity.

Art. 10. (1) the contract of consumer credit shall be concluded in writing, on paper or on another durable medium, in two copies-one for each of the parties to the contract.

(2) a creditor may request and collect from the user any payment, including interest, fees, commissions or other costs associated with the credit agreement, which are not provided for in the contract of consumer credit.

(3) paragraph 1 shall apply to all amendments and additions to the contract, which is signed by both parties to the contract, except in cases where the Treaty expressly provides for the possibility to change the interest rate unilaterally by the creditor.


Art. 11. (1) the contract of consumer credit shall be in plain language and contain:

1. the date and place of conclusion;

2. the type of the loan;

3. the name, uniform civil number (personal number or personal number for foreigner), standing and this address of the consumer;

4. the name, legal form, VAT code and BULSTAT or address/registered office of the creditor;

5. the data referred to in paragraph 3 for individuals and under item 4 for sole proprietors and legal persons-in contracts when a credit intermediary is involved;

6. the duration of the credit agreement;

7. the total amount of credit and the conditions for its absorption;

8. the product or service and its cash price-in the case of a credit in the form of deferred payment for a good or service or to linked credit agreements;

9. the borrowing rate, the conditions governing its application and index or reference rate that is linked to the initial borrowing rate, as well as the periods, conditions and procedures for changing the borrowing rate; If under different circumstances, different interest rates, this information is provided for all the applicable rates;

10. the annual percentage rate of charge on the loan and the total amount payable by the consumer, calculated at the time of the conclusion of the credit agreement, indicating the assumptions used in the calculation of the annual percentage rate of charge in the manner set out in annex 1;

11. the conditions for repayment of the loan by the user, including a repayment plan, containing information on the size, number, frequency and dates of payment of the instalments, the order of distribution of contributions between the different outstanding balances charged at different borrowing rates for the purposes of the redemption;

12. information on the consumer's right to repayment of principal on a fixed-term contract for a loan to obtain, on request and free of charge, at any time during the execution of the contract, a statement of account in the form of a repayment plan for the underlying and upcoming payments; the amortisation table shall indicate payments and terms and conditions for making these payments; the plan shall contain a breakdown of each repayment showing repayment of principal, interest, calculated on the basis of the borrowing rate and, where applicable, the additional costs; When the interest rate is not fixed or where additional costs may be changed under the credit agreement, in the installment plan shall clearly indicate that the information contained in the plan is valid only until the subsequent change of the interest rate or the additional costs under the credit agreement;

13. a statement showing the periods and conditions for the payment of the related recurring or one-time expenses and interest, when they should be paid, without repayment of principal;

14. all expenses for opening and servicing of one or more bank accounts intended for service (absorption and discharge) of the loan, unless the opening of a bank account is not voluntary, the cost for the use of a payment instrument, allowing the simultaneous undertaking of the provision of the loan and its repayment, as well as any other costs deriving from the credit agreement and the conditions under which those charges may be changed;

15. the interest rate to be applied to the arrears, calculated at the time of the conclusion of the credit agreement, the arrangements for his change, and the cost of all expenses that are due in the event of the Treaty;

16. warning about the consequences to the user default rates of contributions;

17. the presence of a notary and other fees that are associated with the credit agreement, if any;

18. securities, which the user is required to provide, if any;

19. insurance required, if any;

20. the presence or absence of a right of withdrawal the consumer contract, the period within which that right may be exercised and other conditions for its exercise, including information about the obligation of the consumer to repay the principal and interest in accordance with art. 29, para. 4 and 6, as well as for the size of the interest rate of the day;

21. information on the rights of the user, arising from art. 27 and 28, as well as the conditions for the exercise of those rights;

22. the right of early repayment of the credit, the order for its implementation and, where appropriate, information on the creditor's right to compensation in the cases under art. 32, and the manner of its calculation;

23. the procedure for terminating the credit agreement;

24. the availability of non-judicial means for the settlement of disputes and to compensate customers in connection with the provision of consumer credit, as well as the conditions for their use;

25. other terms and conditions;

26. the address of the Commission for the protection of consumers as a supervisory body in compliance with the requirements of this Act;

27. the signatures of the parties.

(2) when applying para. 1, item 12, the creditor shall provide the consumer, upon request and free of charge, at any one time of the contract, a statement of account in the form of a repayment plan for the underlying and pending payments.


(3) in the case of credit agreements under which payments made by the consumer do not give rise to an immediate corresponding repayment of the total amount of credit, but are used for the recovery of funds (capital) under the conditions and within the time limits provided for in the Treaty or in an ancillary agreement, stating clearly that this kind of contracts do not provide for a guarantee of repayment of the total amount of the loan agreement except in the cases where it is provided.

Art. 12. (1) the contract of consumer credit, where credit is granted in the form of an overdraft facility, when the loan must be repaid on demand or within three months, shall be drawn up in English and contains:

1. the date and place of conclusion;

2. the type of the loan;

3. the name, uniform civil number (personal number or personal number for foreigner), standing and this address of the consumer;

4. the name, legal form, the code BULSTAT or UIC, address/registered office of the creditor;

5. the data referred to in paragraph 3 for individuals and under item 4 for sole proprietors and legal persons-in contracts when a credit intermediary is involved;

6. the duration of the credit agreement;

7. the total amount of credit and the conditions for its absorption;

8. the borrowing rate, the conditions applicable to the borrowing rate and, where necessary, index or reference rate that is linked to the initial borrowing rate, as well as the periods, conditions and procedures for changing the borrowing rate; If under different circumstances, different interest rates, the information referred to in the first subparagraph shall be granted to all the applicable rates;

9. the annual percentage rate of charge on the loan and the total amount payable by the consumer, calculated at the time of the conclusion of the credit agreement, indicating the assumptions used in the calculation of the annual percentage rate of charge in the manner set out in annex 1;

10. indication that the creditor may at any time ask the user to fully repay the loan;

11. conditions for exercising the right of withdrawal the consumer credit contract;

12. information on the costs arising from the conclusion of the credit agreement and the conditions under which those charges may be changed.

(2) the user may terminate the contract for consumer credit in the form of an overdraft facility, neopredelen concluded for a period of time, at any time, without costs, unless the contract periods for notice of termination of the contract. The period of notice shall not be longer than one month.

Art. 13. (1) where a contract for opening an account provides for the possibility for the user to exceed the availability of the account or the agreed overdraft in the amount of the contract shall be indicated and the borrowing rate, the conditions of its application, any index or reference rate, linked to the original interest rate and, if applicable, the conditions under which those charges may be changed.

(2) the creditor shall provide the information referred to in para. 1 on paper or on another durable medium on a regular basis over a period of time.

(3) in the event of a significant excess of the account balance or the amount of the agreed overdraft, which lasts longer than one month, the creditor shall inform the consumer without delay in writing or on another durable medium:

1. the excess;

2. the amount of the excess;

3. the interest rate;

4. the applicable penalties, fees and for all expenses and interest on late payments.

Art. 14. (1) the creditor shall inform the consumer on paper or on another durable medium about any change in the interest rate before the entry into force of the change, as well as for:

1. the amount of the contributions after the entry into force of the new rate;

2. the number or frequency of the payments, if you are changing.

(2) the user is deemed to be notified when a notification has been sent to the last address indicated by him.

(3) where the change in the borrowing rate stems from a change in a reference rate and the new reference rate is made publicly available by appropriate means and the information for the new reference rate can be found in the business premises of the creditor, the parties to the credit agreement may stipulate that the information referred to in para. 1 shall be made available periodically to the user.

Art. 15. (1) in a contract of credit given in the form of overdraft, the creditor shall provide regular user on paper or on another durable medium, containing the statement of account information:

1. the exact period for which the statement relates;

2. the amount of the interest amounts and the date of any amount;

3. the remainder of the previous statement and his date;

4. new balance;

5. the dates and amounts of payments made by the consumer;

6. interest rate applications;

7. all accrued costs;

8. the minimum payment amount from the user, if specified.

(2) the creditor shall inform the consumer on paper or on another durable medium about any increase in the interest rate or costs payable by the consumer prior to their entry into force. The user is deemed to be notified when a notification has been sent to the last address indicated by him.


(3) where the change in the borrowing rate stems from a change in a reference rate and the new reference rate is made publicly available by appropriate means and the information for the new reference rate can be found in the business premises of the creditor, the parties to the contract may agree in the credit agreement that the information referred to in para. 1 shall be provided to the consumer in an extract from the account.

Chapter four

ASSESSMENT OF THE CREDITWORTHINESS OF THE CONSUMER

Art. 16. (1) Before the conclusion of the credit agreement, the creditor shall assess the consumer's creditworthiness on the basis of sufficient information, including information obtained by the user, and, if necessary, consulting in central credit register or in another database used in the Republic of Bulgaria to assess the creditworthiness of consumers.

(2) in deciding on the granting of consumer credit, the creditor can use the central credit register or another database used in the Republic of Bulgaria to assess the creditworthiness of consumers, and to take into account the information contained in the register, under the management of the risk associated with the provision of credit.

(3) where, after the conclusion of the contract of consumer credit, the parties agree to change the total amount of credit, the creditor shall update the financial information available to the user and to assess its creditworthiness before any increase in the total amount of credit that exceeds the 25 percent with the agreed amount of credit.

Art. 17. In the case of cross-border provision of loan creditors from other Member States of the European Union, have access to and make use of the information contained in the central credit register or in another database used in the Republic of Bulgaria to assess the creditworthiness of consumers, under the conditions and by the order in which data is provided and used by persons providing consumer credit on the territory of the Republic of Bulgaria.

Art. 18. (1) where, on the basis of a check carried out at the central credit register or in another database used in the Republic of Bulgaria to assess the creditworthiness of the consumer, the creditor refuses to grant a credit, it is obliged to notify the user immediately and free of charge for the outcome of the checks carried out and the information to the user contained in the register.

(2) paragraph 1 shall not apply in cases where the provision of the information is prohibited or contrary to applicable law, European Union law or public order and security.

(3) with regard to the processing of personal data of users and access to such data in connection with the provision of information for the assessment of their creditworthiness shall apply the provisions of the data protection act.

Chapter five

The ANNUAL PERCENTAGE RATE of CHARGE on the LOAN art. 19. (1) the annual percentage rate of charge on the loan expressed the total cost of the credit to the consumer, present or future (interest, other direct or indirect costs, commissions, fees of any kind, including those owed to intermediaries for conclusion of the contract), expressed as an annual percentage of the total amount of the loan.

(2) the annual percentage rate of charge on the loan is calculated according to the formula as referred to in annex No. 1, having regard to the General principles referred to therein and additional assumptions.

(3) in the calculation of the annual percentage rate of charge on the loan cost does not include:

1. the consumer pays for failure to perform his obligations under the contract of consumer credit;

2. other than the purchase price of the good or service that the user due to the purchase of a product or providing a service, irrespective of whether the payment is made in cash or by credit;

3. to maintain the account in connection with the Treaty for consumer credit, the cost to use the payment instrument, which allows making payments related to the acquisition or redemption of credit, and other costs associated with making the payments, if the opening of the account is optional and costs associated with the account are set out clearly and separately in the credit agreement or in any other contract concluded with the user.

Chapter vi NULLITY of CONTRACT of CONSUMER CREDIT. UNFAIR TERMS art. 20. (1) the rights granted to consumers under this law, may not be restricted. Any stipulation by which the advance is excluded or limited the rights of consumers, is invalid.

(2) the refusal of the rights granted to consumers under this Act is void.

(3) where a contract of consumer credit is directly related to the territory of the Republic of Bulgaria or the territory of another Member State of the European Union, or with the territory of more than one Member State of the European Union, the user cannot be deprived of the protection granted under this Act, or by the protection afforded to him by the legislation of another Member State of the European Union.

Art. 21. (1) any clause in a contract of consumer credit aimed at circumventing the requirements or the result of this law, is null and void.

(2) any clause in a contract of loan with a fixed interest rate, which determines the compensation for the creditor, greater than that referred to in art. 32, para. 4, is negligible.


Art. 22. When you are not satisfied the requirements of art. 10, para. 1, art. 11, para. 1.7-12 and 20, and art. 12, al. 1.7-9, consumer credit contract is invalid.

Art. 23. where a consumer credit contract is declared invalid, the user returns the net value of the loan, but not owes interest or other costs on the loan.

Art. 24. consumer credit contract shall apply art. 143-148 of the Act on consumer protection.

Chapter 7 ADVERTISING on CONSUMER CREDIT

Art. 25. (1) any advertising on consumer credit, which indicates an interest rate or another number, related to the cost of the credit must contain information on: 1. the interest rate to be fixed and/or variable applicable to the credit, together with detailed information of all costs included in the total cost of the credit to the consumer;

2. the total amount of credit;

3. the annual percentage rate of charge, with the exception of loans for overdraft;

4. the term of the loan;

5. the price of the good or service, when it must be paid in cash, as well as the amount of the advance payment when credit is granted in the form of deferred payment for a good or service;

6. the total amount payable by the consumer and the amount of the contributions.

(2) the information referred to in para. 1 shall be clear, comprehensible, easy-to-view and is accompanied by a representative example.

(3) in any written advertisement, regardless of the means of advertising, information about interest rate, the annual percentage rate of charge, the total amount of credit, due from the user, and about whether the loan is a fixed or variable rate, must be submitted with the same size, type and font format.

(4) when advertising for consumer credit does not specify the interest rate or other number related to the cost of the loan, the requirements of para. 1 shall not apply.

(5) where a creditor placed as a condition for the granting of credit to the conclusion of a contract for the provision of an ancillary service such as insurance, the value of which cannot be determined in advance, or where the conclusion of such a contract derives from application of the clauses and terms and conditions, the advertisement shall indicate in a clear and comprehensible manner which is easy to recognise the need for the conclusion of a contract for providing this additional service and the annual rate of the cost of the loan.

(6) For the ad in al. 1 apply and article. 68 b-68 (l) of the Act on consumer protection.

Chapter eight

TRANSFER OF CONTRACT RECEIVABLES FOR CONSUMER CREDIT

Art. 26. (1) a lender may transfer the claim on the consumer credit contract to a third party only if the consumer credit contract provides for such a possibility.

(2) where the creditor transferred its claims under the contract of consumer credit of a third party, the user is entitled to make in relation to this third person all objections which have to do with the original creditor, including set-off for objections.

(3) Invalid any clause of the Treaty is for consumer credit, which excludes or limits the right of the user under para. 2.

(4) the creditor shall inform the consumer of the transfer of the claim under para. 1 except when the original creditor, in agreement with the new lender continues to administer the credit vis-à-vis the consumer.

Chapter nine

LINKED CREDIT AGREEMENTS

Art. 27. (1) the contract for the sale of goods or for the provision of services, sponsored by the consumer credit, points out that the price of the good or service would be paid in whole or in part with a loan provided by the lender.

(2) for the granting of credit for the acquisition of goods or services to the consumer's obligations arise from the moment of delivery of goods or the provision of the service. Under the sale of goods or the provision of services with the user on a continuing basis the obligation arises from the first delivery of goods or the provision of the service and shall be terminated upon cessation of the delivery.

(3) the seller of the goods or the service provider is obliged to keep a copy of the credit given to the user, and to submit it at the request of the control authorities under this law.

(4) the seller of the goods or the service provider is not obliged to deliver the goods or provide the service to the user, before it was notified by the lender for making the loan, and before the expiry of the 14 day period, in which the user can withdraw from the credit agreement. Any supply of goods or provision of services before the expiry of the period during which the user can withdraw from the credit agreement shall be borne by the seller of the merchandise or service provider.

(5) the contract for the sale of goods or for the provision of services financed by the loan, shall be terminated in cases where:

1. within 7 working days of the conclusion of the credit agreement, the creditor notifies the seller of the merchandise or service provider for the granting of credit;

2. the consumer exercises his right of withdrawal from the credit agreement.

(6) the contract for the sale of goods or for the provision of services does not terminate when the user pay the unit selling price of the good or service before the expiry of the period referred to in paragraph 1. 5, item 1.

(7) upon termination of the contract of sale of goods or for the provision of service under paragraph 4. 5 the seller of the goods or the service provider is obliged to reimburse the user advances paid by him.


Art. 28. (1) where, in the granting of credit for the acquisition of goods or services, the user does not obtain satisfaction of his rights by the seller or the supplier, he shall be entitled to claim against the creditor in the linked credit agreement.

(2) in the cases referred to in para. 1 the consumer shall be entitled to claim from the creditor compensation for the difference between the negotiated and actual delivered, when the following circumstances are simultaneously present:

1. the user has received credit for the acquisition of goods or services by a person other than the seller or supplier;

2. between the lender and the seller of the goods or provider of the service is concluded prior agreement, according to which the loans offered by the seller or supplier of goods and services will be provided solely by the lender;

3. the user has received credit in the framework of the agreement referred to in paragraph 2;

4. the goods or the services, for the acquisition of which the loan was obtained, are not delivered to the user, are partially delivered, or not in accordance with the contract of sale or supply, and

5. the user has brought his right of compensation to the supplier, but was not satisfied.

(3) When the consumer exercises his right of withdrawal from a contract for the supply of goods or provision of services, it is not bound by the clauses of the related contract of consumer credit.

Chapter ten

RIGHT OF WITHDRAWAL FOR THE CONSUMER CREDIT

Art. 29. (1) the user has the right, without owing compensation or penalty and without giving any reason, to withdraw from the contract of consumer credit within 14 days of: 1. the date of conclusion of the credit agreement, or

2. the date on which the consumer receives the contract conditions and the information referred to in art. 11 and 12 in cases where this date is subsequent to the date referred to in paragraph 1.

(2) the right of withdrawal by the consumer credit contract is deemed to be exercised on condition that the user sent a notice to the creditor before the expiry of the deadline referred to in paragraph 1. 1.

(3) the notification under paragraph 1. 2 must be made on paper or on another durable medium, within which the creditor has access in a way that can be proven in accordance with the legislation in force.

(4) When the consumer exercises his right of withdrawal from the credit agreement, he returned to the creditor the capital and pay the interest accrued for the period from the date of drawdown of funds under the loan until the date of repayment of principal, without undue delay and no later than 30 calendar days from the sending of the notification to creditor to exercise the right of withdrawal. Interest shall be calculated on the basis of the agreed contract rate.

(5) the refusal of the consumer credit contract shall enter into force and shall terminate the contract, if the notification is made within the time limit and in accordance with para. 2 and 3, and the condition is met in the Al. 4. (6) in exercising the right of withdrawal from the credit agreement, the creditor shall not be entitled to require and collect compensation from the consumer, with the exception of compensation for its costs to public administrative bodies, which are not refundable.

(7) in the exercise of his right of withdrawal from the credit agreement, the user shall not be bound by additional services relating to the credit agreement, that are provided by the creditor or by a third party on the basis of an agreement between the third party and the creditor.

Art. 30. the provisions of art. 12 and 13 of the Act on the provision of financial services at a distance for the right of withdrawal from a distance shall not apply in respect of a consumer credit contract concluded at a distance, when the user has the right to withdraw from the contract pursuant to art. 29.

Art. 31. the provisions of art. 47 of the law on consumer protection on the right of withdrawal from the contract concluded away from business premises, shall not apply in respect of a consumer credit contract concluded away from business premises, where the consumer has the right to withdraw from the contract pursuant to art. 29.

Chapter Eleven EARLY REPAYMENT of CREDIT art. 32. (1) the consumer shall be entitled at any time to discharge fully or partially his obligations under a credit agreement. In such cases, he shall be entitled to a reduction of the total cost of the credit, such reduction relates to interest and the costs for the remainder of the term of the contract.

(2) the creditor may refuse to accept performance early in the credit agreement.

(3) the creditor is not entitled to compensation or a penalty for early repayment of the loan by the user:

1. repayment of the loan shall be carried out in the period during which the interest rate on the credit agreement is not fixed;

2. repayment is effected on the basis of payment under an insurance contract intended to guarantee the repayment of the loan, or

3. the credit agreement is in the form of an overdraft facility.

(4) in case of early repayment of the loan by the user outside the cases referred to in para. 3 the creditor is entitled to fair and objectively justified compensation for possible costs directly linked to early repayment of the loan when it is carried out during the period in which the interest rate is fixed. The benefit of the creditor may not be greater than 1 percent of the amount of the credit repaid early, when the remaining period of the loan is greater than one year. When the remaining period of the loan is less than one year, the compensation to the creditor may not exceed 0.5% of the amount of credit repaid early.


(5) the creditor may exceptionally, to seek greater compensation, if he proves that the loss suffered by the early repayment of the loan exceeding the amount referred to in paragraph 1. 4.

(6) where demand compensation from the lender under para. 5 exceeds the loss actually suffered, the consumer may claim a corresponding reduction. In this case, the loss is determined as the difference between the initially agreed interest rate and the interest rate at which the creditor has to offer on the market again as the amount repaid before the end of the loan, taking into account the impact of early repayment on administrative costs of the loan.

(7) in the cases referred to in para. (4) and (5) the compensation to the creditor for early repayment of the loan may not exceed the amount of interest the consumer would have paid for the period covering the early repayment of the loan and the agreed date of termination of the credit agreement.

Chapter Twelve

OTHER DUTIES OF THE CREDITOR

Art. 33. (1) in the user's default the creditor is entitled only to interest on the unpaid amount within the time of the party.

(2) when the user delay the due thereof on the loan payments, the compensation for delay shall not exceed the legal interest rate.

(3) the creditor may refuse to accept a partial payment on the loan.

Art. 34. (1) a lender may not oblige user to ensure consumer credit by issuing promissory note or Bill of Exchange.

(2) where the duties of the consumer under the contract of consumer credit are secured by the issuance of a promissory note or Bill of Exchange, after each payment the creditor immediately sets them in accordance with the remainder on the obligation.

(3) in the discharge of the obligation of the consumer, the creditor is obliged to return the promissory note or Bill of Exchange.

(4) the creditor is responsible for any damage caused to the user in the event of obligations under para. 1, 2 and 3.

(5) the creditor shall not be entitled to change the currency in which the official was an initial loan, the balance of the loan, respectively.

Chapter thirteen

CONSUMER CREDIT CONTRACTS with INDEFINITE Article. 35. (1) the consumer shall be entitled at any time to terminate the loan contract concluded for an indefinite period of time without due compensation or a penalty, except where the parties have negotiated period of notice for termination of the contract. This period may not be longer than one month.

(2) if provided for in the contract, the creditor may cancel the contract for open-end credit in the normal manner by sending the user made on paper or on another durable medium at least two months ' notice before.

(3) where provided for in the credit agreement and in the presence of objective reasons, the lender may terminate the uptake of appropriations under a credit agreement from the user, concluded for an indefinite period of time.

(4) in the cases referred to in para. 3 the creditor is obliged to inform the user on paper or on another durable medium, indicating the reasons for the termination of the absorption amounts under a credit agreement, and when this is not possible-immediately thereafter, unless the provision of such information is prohibited or contrary to applicable law, European Union law or public order and security.

Chapter fourteen

MEDIATION FOR THE PROVISION OF CONSUMER CREDIT

Art. 36. (1) the provisions of the Act apply to the mediation contract for the provision of consumer credit.

(2) the contract of mediation for the provision of consumer credit contract, on the basis of which the natural or legal person who is acting in the course of his professional or trade activity, offers or promises to arrange a contract for consumer credit or indicate the possibility of its conclusion.

(3) the contract under paragraph 1. 1 shall be concluded in writing.

(4) any advertisement and any document intended for the user, made and/or distributed by or on behalf of a credit intermediary must indicate clearly the scope of its powers, in particular whether he works exclusively with one lender, with more creditors or as an independent broker activity.

(5) prior to the conclusion of a contract of consumer credit the consumer credit firm and agreed in writing or on another durable medium size of the possible costs related to services provided by the credit intermediary, including his remuneration, payable by the user.

(6) the credit intermediary shall inform the creditor by the user due to expenses related to services rendered, including remuneration, payable by the user to calculate the annual percentage rate of charge.

Chapter fifteen.

METHODS FOR SOLVING USER DISPUTES

Section I

Consumer complaints. Collective actions for consumer protection art. 37. (1) the Consumer shall have the right to submit complaints related to consumer credit brokerage contracts or for the provision of consumer credit to the Commission for the protection of consumers.

(2) the Commission for the protection of consumers and consumer associations explaining the rights and obligations of the consumer in respect of contracts for consumer credit, provide their advice and information about their rights in the use of consumer credit and promote the settlement of consumer disputes and complaints.


Art. 38. the Commission for the protection of consumers and consumer organisations can claim cessation or prohibition of actions or practices under this Act that are in violation of the collective interests of consumers, and claims for compensation under the conditions and by the procedure of art. 186-190 a of the law on consumer protection.

Art. 39. (1) persons providing consumer credit within the meaning of this law, shall be obliged, within the framework of the internal rules for the implementation of their activities to provide for a procedure for the submission of objections, settlement of disputes and the establishment of benefits in connection with complaints relating to the provision of consumer credit, and provide information to users about this.

(2) the creditor is obliged to rule and to inform the user in writing of their decision on any objection in relation to consumer credit within 30 days of receipt.

(3) the filing of an objection or complaint by customers in connection with the consumer credit is not a mandatory prerequisite for the initiation of conciliation proceedings under art. 40, para. 1.

Section II

Out-of-court settlement of disputes art. 40. (1) the users have the right to apply to the conciliation committees created by the order of art. 182-184 of the law on protection of consumers when they violated their rights and legitimate interests.

(2) where the creditor does not respond within the time limit laid down in art. 39, para. 2 and when the creditor's decision does not satisfy the user, the dispute may be referred for consideration by the appropriate out-of-court body in the Al. 1.

(3) in consideration of cross-border disputes in relation to the provision of consumer credit conciliation commissions under para. 1 cooperate with the competent authorities for the out-of-court settlement of disputes in the Member States of the European Union.

Chapter sixteen CONTROL

Art. 41. (1) in this Act shall be carried out by the Commission for consumer protection to the Minister of economy, energy and tourism.

(2) for the control on execution of the law, the President of the Commission for the protection of consumers empowered by order officials from her administration.

(3) in the performance of his duties, officials at al. 2 have the right:

1. access to all documents, related directly or indirectly to the violation of this Act;

2. to order any officer to provide information on violations of this law, which are known;

3. to conduct on-the-spot checks;

4. to attract experts;

5. to draw up regulations for the identification of violations.

(4) in the performance of his duties, officials at al. 2 are required to protect the company, banking, professional or commercial secret and not to disclose details of the checks prior to their closure, as well as not to use the information obtained in the course of the inspection, outside the goal and purpose of the inspection.

(5) the President of the Commission for consumer protection have the right to:

1. the order in writing to the offender to cease the infringement of this law;

2. require the offender to declares that it will cease the infringement;

3. order the cessation or prohibition of any infringement of the law and, if necessary, to make the order public.

Art. 42. lenders-subject to verification of compliance with the requirements of this Act, are required to provide officials as per art. 41, para. 2:

1. access to offices;

2. the necessary documents, information and assistance required for the purposes of the verification referred to in art. 41, para. 3, and to refrain from actions which could prevent the conduct.

Art. 43. (1) where the Commission for the protection of consumers found that advertising of credit is in violation of art. 25, para. 1, 2 or 3, the President of the Commission issued an order, which stops the spread of advertising.

(2) the President of the Commission for the protection of consumers may oblige the advertiser to prove the veracity of the allegations contained in the ad and to order the production of evidence to be performed within a certain period of it.

Art. 44. (1) in the order of the President of the Commission for the protection of consumers must indicate the grounds and reasons for stopping the spread of advertising.

(2) the order is subject to appeal under the administrative code.

(3) an appeal of an order does not stop its implementation, unless the Court directs otherwise.

Chapter Seventeen ADMINISTRATIVE PENAL PROVISIONS

Art. 45. (1) for violation of art. 5, 6, art. 7, para. 2, art. 10, para. 2 and 3, art. 11, art. 18, al. 1 and 2, art. 19, para. 2 and 3, art. 25, para. 1-5, art. 26, al. 1, art. 29, para. 1, art. 34, para. 1, 3 and 5, art. 36, para. 3, 4 and 5 and article. 41, para. 4 the guilty persons be imposed a fine in the amount of 700 to 2,000 BGN. -for individuals, and a penalty payment in the amount of 3000 to 8000 EUR -for sole traders and legal persons.

(2) in the event of a repeated offence under subsection. 1 penalty from 1500 to 4000 EUR, and the proprietary sanction from 5000-up to 15 000 LV.

Art. 46. (1) for violation of art. 8, 12, 13, art. 14, para. 1 and art. 15, para. 1 and 2 the guilty persons be imposed a fine in the amount of 700 to 2,000 BGN. -for individuals, and a penalty payment in the amount of 3000 to 8000 EUR -for sole traders and legal persons.

(2) in the event of a repeated offence under subsection. 1 penalty from 1500 to 4000 EUR, and the proprietary sanction from 5000-up to 15 000 LV.

Art. 47. (1) for violation of art. 16, al. 1 and 3 of the guilty persons be imposed a fine of 700 to 2,000 BGN. -for individuals, and a penalty payment in the amount of 3000 to 8000 EUR -for sole traders and legal persons.


(2) in the event of a repeated offence under subsection. 1 penalty from 1500 to 4000 EUR, and the proprietary sanction from 5000-up to 15 000 LV.

Art. 48. For violation of art. 27, al. 6 and 7 of the guilty persons be imposed a fine in the amount of 1500 to 4000 EUR -for individuals, and a penalty payment in the amount of 3000 to 5000 EUR -for sole traders and legal persons.

Art. 49. (1) in violation of art. 29, para. 6 request, collect or allow to be brought compensation or a penalty for refusing the consumer contract, shall be punished with fine in extend from 700 to 2,000 BGN. -for individuals, and a penalty payment in the amount of 3000 to 8000 EUR -for sole traders and legal persons.

(2) in the event of a repeated offence under subsection. 1 penalty from 1500 to 4000 EUR, and the proprietary sanction from 5000-up to 15 000 LV.

Art. 50. (1) for violation of art. 32, para. 2, 3 and 4 of the guilty persons be imposed a fine of 2000 to 5000 EUR -for individuals, and a penalty payment in the amount of 5000 to 10 000 LEVs. -for sole traders and legal persons.

(2) in the event of a repeated offence under subsection. 1 the fine is from 4000 to 10 000 BGN, and the proprietary sanction – from 8000 to 15000 EUR

Art. 51. For violation of art. 36, para. 6 the guilty persons be imposed a fine of 2000 to 5000 EUR -for individuals, and a penalty payment in the amount of 5000 to 10 000 LEVs. -for sole traders and legal persons.

Art. 52. For violation of art. 39, para. 1 and 2 the guilty persons be imposed a fine of 1000 to 2000 BGN. -for individuals, and a penalty payment in the amount of 1500 to 3000 BGN. -for sole traders and legal persons.

Art. 53. (1) For failure to comply with the injunction under art. 41, para. 3, item 2, and in para. 5 the guilty persons be imposed a fine in the amount from 1000 to 2000 BGN. -for individuals, and a penalty payment in the amount of 1500 to 3000 BGN. -for sole traders and legal persons.

(2) in the event of a repeated offence under subsection. 1 the fine and the proprietary sanction are double the amount.

Art. 54. (1) the failure of art. 42 the guilty persons be imposed a fine in the amount from 2000 to 5000 EUR -for individuals, and a penalty payment in the amount of 5000 to 10 000 LEVs. -for sole traders and legal persons.

(2) in the event of a repeated offence under subsection. 1 the fine is from 4000 to 10 000 BGN, and the proprietary sanction – from 8000 to 15000 EUR

Art. 55. (1) the acts establishing the infringements shall be drawn up by officials authorised by the Chairman of the Commission for the protection of consumers.

(2) the penal provisions shall be issued by the President of the Commission for the protection of consumers or by officials authorised by him.

(3) Compilation of acts, the issue, the appeal and the implementation of the penal provisions shall be carried out in accordance with the law for the administrative offences and sanctions.

ADDITIONAL PROVISIONS

§ 1. Within the meaning of this law: 1. the total cost of the credit to the consumer "means all the costs on the loan, including interest, commissions, taxes, payment for credit intermediaries and any other types of expenditure directly linked to the contract of consumer credit, which are known to the creditor and the consumer must pay, including the cost of additional services relating to the credit agreement, in particular insurance premiums in cases When the conclusion of the contract for the service is a prerequisite for obtaining a loan, or in cases where the provision of the loan is a result of the application of the commercial terms and conditions. The total cost of the credit to the consumer shall not include notary fees.

2. the total amount payable by the consumer "is the sum of the total amount of credit and total cost of the credit to the consumer.

3. "total amount of credit" is the maximum size (limit) or the total amount provided under the credit agreement.

4. "interest rate on the loan is the interest rate expressed as a fixed or variable percentage applied on an annual basis to the amount of credit drawn down.

5. "fixed 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 a fixed interest rate for the whole duration of the credit agreement or negotiate some interest rates for individual periods of duration of the credit agreement, in which only the specified fixed interest rate. When not all interest rates on credits for individual periods are laid down in the credit agreement, the borrowing rate is fixed only for the partial periods for which the borrowing rate is set exclusively by means of a certain fixed percentage agreed upon conclusion of the credit agreement.

6. "reference interest rate" means the interest rate that the lender uses as a base for the calculation of the interest rate on the loan. It is a market index or index, which is calculated by the creditor as defined by the it methodology. The reference rate is made publicly available by making it available in electronic form and information about it is stored at the disposal of the interested parties in writing accessible to the creditor.

7. "overdraft facility" is a loan in which the lender expressly provides the user the ability to use the funds in excess of the payment account availability.

8. Agreement to open a credit account in which there is an opportunity for the user to be granted the right to excess availability or the agreed amount of overdraft credit, in which the creditor implicitly provides the user the ability to use cash in excess of the availability of the payment account or the agreed overdraft facility size.


9. "credit intermediary" is a natural or legal person who is not acting as a creditor and who, in the execution of his trade or profession, for a fee in cash or any other form of economic reward, agreed in the contract:

a) presents or offers credit agreements to consumers;

b) assists consumers by undertaking preparatory work for credit agreements other than those referred to in (a), or

c) concludes credit agreements with consumers on behalf and for the account of the creditor.

10. "durable medium" means any medium enabling the consumer to store information addressed to him in a way that allows ease of use for a period of time corresponding to the purposes for which the information is intended, and which allows the unchanged reproduction of the information stored.

11. "linked credit agreement" means the contract of consumer credit, in which:

a) credit is used exclusively for the financing of a contract for the supply of goods or provision of services, and

(b)) from commercial point of view the two treaties constitute a whole, which means that the seller of the merchandise or service provider finances the provision of credit or in the event that the loan is financed by a third party, the creditor uses the services of the seller of the merchandise or service provider for the conclusion or preparation of the credit agreement, or that the credit agreement indicating the specific goods or services , the supply of which would be financed by consumer credit.

12. "Re" is the infringement committed within one year of the entry into force of the Decree, which was imposed a penalty for the same offence.

§ 2. This law introduces provisions of Directive 2008/48/EC of the European Parliament and of the Council of 23 April 2008 on credit agreements for consumers and repealing Council Directive 87/102/EEC (OJ L 133/66 of 22 May 2008).

TRANSITIONAL AND FINAL PROVISIONS

§ 3. Consumer credit law (promulgated, SG. 53 of 2006; amend., 105/2006, no. 110 of 2008 and 82/2009) is repealed.

§ 4. Incumbent upon the entry into force of the law on the procedures under the revoked law for consumer credit to the Commission for the protection of consumers in current line completed.

§ 5. The provisions of the Act do not apply to consumer credit contracts concluded before the date of its entry into force, with the exception of art. 14, 15, 26 and 35, which shall apply to open-end credit agreements entered into before that date.

§ 6. In the Consumer Protection Act (promulgated, SG. 99 of 2005; amend., SG. 30, 51, 53, 59, 105 and 108 of 2006, issue 31, 41, 59 and 64 of 2007 and 36/102 by 2008 and no. 23, 42 and 82 from 2009) in art. 186, para. 2, item 9 (c) shall be replaced by the following:

"c) Directive 2008/48/EC of the European Parliament and of the Council of 23 April 2008 on credit agreements for consumers and repealing Council Directive 87/102/EEC (OJ NO L 133,/66 of 22 May 2008);".

§ 7. Ustrojstveniât of procedure of the Commission for the protection of consumers is brought into conformity with the requirements of the act within one month of its entry into force.

§ 8. The implementation of the law is entrusted to the Minister of economy, energy and tourism.

§ 9. The law comes into effect on May 12, 2010.

The law was adopted by 41-Otto National Assembly on 18 February 2010, and is stamped with the official seal of the National Assembly.

President of the National Assembly Tsetska Tsacheva:

Annex No 1 to art. 19, para. 2

The annual percentage rate of charge on the loan

1. the calculation of the annual percentage rate of charge (APR)

The annual percentage rate of charge on the loan is calculated by the following formula:

 



Note: see the formula in the PDF and the number



where:

X is the APR, which can be calculated in an algebraic way or by successive approximations when other parameters in the equation are known;

m-total drawdowns on credit;

k-sequence number of a drawdown, thus 1 ≤ k ≤ m;

Ck-the size of the serial (k) drawdown;

tk-the interval, expressed in years and fractions of a year, between the date of the first drawdown and the date of the drawdown (k) loan amounts, therefore t1 = 0;

m '-the total number of repayments and payments of charges;

l-number of the redemption payment or the payment of costs;

Dl-the size of the row (l) repayment or payment of charges;

Sl-the interval, expressed in years and fractions of a year, between the date of the first drawdown and the date of the (l) repayment or payment of charges.

2. the calculation of the APR shall be carried out taking account of the following general principles:

a) paid by the parties to the contract amounts at different times may not necessarily be equal and shall be paid to the same periods of time;

(b)) the starting date shall be the date of first drawdown;

in the intervals between dates), used in the calculations shall be expressed in years or in fractions of a year, as it is believed that the year has 365 days (or 366 in leap years), 52sedmici or 12 months average; It is assumed that an average month contains 30.41666 days (i.e. 365/12) regardless of whether it is a leap year or not;

d) the result of the calculation shall be expressed with an accuracy of at least one decimal place; When the next number after the decimal point is greater than or equal to 5, the preceding decimal number is rounded up by one unit;


(e)) the equation referred to in paragraph 1 may be converted into a collection of positive or negative cash flows (Ak), i.e. interest and pogasenite amounts will be received or lapsed during periods 1 to k, expressed in years, as follows:

 



Note: see the formula in the PDF and the number

 

where S is the current balance of cash flow; in a draw between the positive and negative cash flows, this value should be zero.

3. the calculation of the APR on the loan shall be made taking into account the following additional assumptions:

and consumer credit) the contract will be valid for the period which has been concluded, and the creditor and the consumer will fulfil their obligations in accordance with the conditions and time limits laid down in the Treaty;

(b)) in the consumer credit contract, which contains clauses allowing the amendment of the interest rate and the value or amount of the costs included in the APR on the loan that can not get a specific value at the time of its calculation, the APR on the loan is calculated by assuming that interest and other charges are immutable in relation to their original size and will apply until the expiry of the Treaty;

c) If a credit agreement gives the user a variety of options in terms of its absorption, however, that the total amount of credit to be drawn down immediately and in full;

d) If a credit agreement provides different ways of drawdown user with different interest rates or different costs, the credit shall be deemed to be drawn down at the highest values for the rate and costs normally applicable to the utilization of funds in this type of credit agreements;

e) If a credit agreement gives the user a variety of options in terms of its absorption, but provides for restrictions on the amount and duration of the different ways of drawdown, the loan is considered to be utilized on the earliest date provided for in the Treaty and in accordance with the envisaged drawdown limits;

If the contract is) for consumer credit repayment schedule does not provide for repayment of the loan, in the calculation of the APR of the loan, it is assumed that the credit is granted for a period of one year and will be repaid in 12 equal monthly instalments;

(g)) if the contract provides for consumer credit repayment plan, under which the amount of the instalments varies, the amount of each instalment is deemed to be the lowest of the amounts provided for in the agreement;

h) unless otherwise provided in the contract of consumer credit and contain more than one possible date for payment of contributions, for the purpose of calculating the APR on the loan, it is assumed that the loan is granted and repayments will be made on the earliest date provided for in the contract;

and if the contract) for consumer credit does not provide for the total amount of credit, it is assumed that he is 3000 EUR;

k) in the case of the provision of the credit agreement in the form of an overdraft on account assumes that the total amount of credit to be drawn down in full and for the whole duration of the contract; If the duration of the credit agreement is not known, in the calculation of the APR assumes that the term of the contract is 3 months;

l) If for a limited period or amount offers different interest rates and other costs, it is assumed that the interest rate and costs are highest for the whole duration of the credit agreement;

m) in the consumer credit contract for which a fixed interest rate was agreed for the starting period of the contract, which defines a new interest rate, which subsequently periodically adjusted in accordance with a certain agreed index in the calculation of the APR assumes that as of the end of the period with a fixed interest rate, the interest rate is the same as at the time of the calculation of the APR depending on the value of the agreed index at this time.

Annex 2 to the art. 5, al. 2

Standard European form for the provision of information on consumer credit

The information in this form does not have the power of a proposal to conclude a contract and does not oblige the creditor to give you the credit product to which that information relates.

Part i. identification data and contact details of the creditor/credit intermediary:



1. A creditor





(Credentials)

 









2. Address





(An address that will be used by the user)









3. Phone number *





 









4. electronic

address *





 









5. Fax *





 









6. Web page *





 











 

Where relevant for the type of credit:



7. Mortgage Broker





(Credentials)









8. Address





(An address that will be used by the user)









9. Phone number *





 









10. Email address *





 









11. Fax *





 









12. Website *





 











 

Part Ii. Description of the main features of the credit: 1. type of credit





 










2. the total amount of credit

(The maximum size (the limit) or the total sums made available under the credit agreement)





 









3. conditions for utilization of the credit (how and when you will get your money)





 









4. the duration of the credit agreement





 









5. Guidelines for the size, number, frequency and dates of payment transactions





You have to pay the following:

(Amount, number and frequency of payments to be paid by the user)

Interest and/or the cost of the loan will be payable as follows: 1. The total amount you should pay

(The total amount of credit (capital), together with interest and costs which may arise in connection with your loan)





(Sum of total amount of credit and total cost of credit)









7. Where relevant for the type of credit:

When the loan is granted in the form of deferred payment for the purchase of a good or service or is linked to the supply of specific goods or the provision of a service:

Name of good/service;

Price of good/service cash.





 









8. Where relevant for the type of credit: Required collateral;

Description of the security should provide under a credit agreement.





(A type of security)

 









9. Where relevant for the type of credit: payment transactions which do not lead to immediate repayment of the total amount of credit (capital).





 

 











 

Part Iii. Cost of credit:



1. the interest rate on the loan and the conditions for its implementation and, if appropriate for the type of loan, different borrowing rates which are relevant for the loan.





(%

Fixed

Variable (with the index or referen Tan interest rate applicable to the initial borrowing rate)

Periods)









2. the annual percentage rate of charge (APR)

The total cost to the user, present or future, expressed as an annual percentage of the total amount of the loan.

The APR allows you to compare the different proposals on the conclusion of the credit agreement.





(%

Give a representative example indicating the assumptions used for the calculation of interest rate)

 









3. Requires you to obtain credit in a particular undertaking was offered favourable conditions contract for: – insurance

associated with the credit agreement, or

-Another ancillary service contract.





 

 

 

 

 

 

 

 

Yes/No (If Yes, specify the type of insurance contract)

Yes/No (If Yes, specify the type of service)









4. Treaty-related costs:





 









4.1. Where relevant for the type of credit:

The cost of opening and servicing of one or several accounts in connection with the Treaty for consumer credit.





 









4.2. Where relevant for the type of loan: amount of costs for using a specific payment instrument (such as a credit card).





 









4.3. Where relevant for the type of credit: any other cost associated with the credit agreement.





 









4.4. Where relevant for the type of credit: the conditions under which the abovementioned costs related to the credit agreement may change.





 









4.5. Where relevant for the type of credit:

Obligation to pay notarial fees and costs for the notary.





 









4.6. Costs payable on late payments

The presence of unpaid contributions can lead to serious adverse reactions which are pleasant for you effects (including enforcement) and to make it harder for obtaining credit in the future.





(You have to pay. (applicable interest rate and the methods of calculation and when applicable, interest on arrears) for late payment) part IV. Other important conditions of the credit agreement:



1. Right of withdrawal

 You have the right to withdraw from the credit agreement within 14 calendar days.





Yes/No









2. Early repayment of the loan

You have the right, at any time, in whole or in part to pay your obligations under a credit agreement.





 









3. Where relevant for the type of credit:

The creditor is entitled to compensation for early repayment of the loan.





 

 

 

(Determining the amount of compensation (the method of its calculation in accordance with article 32, para. 4)










4. Making reference to the central credit register or in another database used in the Republic of Bulgaria to assess the creditworthiness of the user s.

Where the creditor refuses to provide you with the loan on the basis of the examination carried out in central credit register or in another database under art. 16, he is obliged to notify you immediately and without charge of the result of the completed report and the information contained herein for you.

This does not apply to cases where the provision of such information is prohibited by EU legislation or is contrary to the requirement to ensure public order and security.





 









5. The right to a copy of the draft credit agreement

You have the right, upon request, to receive free of charge a copy of the draft credit agreement. This provision shall not apply if at the time of the request unwilling to enter into a credit agreement with you.





 









6. Where relevant for the type of credit:

The period for which the creditor is bound by the pre-contractual information.





This information is valid for the period of ... .... до........











 

Part V. Where relevant for the type of loan, additional information in the provision of financial services at a distance:

(a)) in respect of the creditor:



1. Where relevant for the type of credit:

Representative of the creditor, established in the country of residence of the user





(Credentials)









2. Address





(An address that will be used by the user)









3. Phone number *





 









4. E-mail address *





 









5. Fax *





 









6. Web page *





 









7. Where relevant for the type of credit:

Registration





(The trade register in which the creditor is entered, along with CONTRAST provided by the registry Agency, or code BULSTAT)









8. Where relevant for the type of credit: supervisor





 

 











 

(b)) in respect of the credit agreement:



1. Where relevant for the type of credit:

The exercise of the right of withdrawal





(Practical instructions for exercising the right of withdrawal from the Treaty, which shall indicate the following: the time limit for the exercise of that right, the address to which notification should be sent in order to exercise the right of withdrawal, and the consequences of non-exercise of that right)









2. Where relevant for the type of credit:

The law, of which the creditor refers to establish relations with you before the conclusion of the credit agreement.





 









3. Where relevant for the type of credit:

Clause on the law applicable to the credit agreement and/or the competent court in the event of a dispute.





(Insert here the clause)









4. Where relevant for the type of credit:

Language in which the pre-contractual information is provided and the information contained in the dimension of the Treaty.





The information and the terms of the contract will be submitted to the (language specific) with your consent, we intend to communicate (specific language/languages) for the duration of the credit agreement











 

c) with respect to extrajudicial means for compensation of the user:



The presence of non-judicial means for bringing claims and demand compensation.





Are there any extrajudicial means for bringing claims for compensation and search from the user side, under a credit agreement from a distance, as well as a way for users to access them











 

INSTRUCTIONS for COMPLETING the annex 2:

1. Anywhere marked * symbol, filling in the appropriate information is optional for the creditor.

2. Wherever noted "When applicable for the type of credit, the creditor must fill out the appropriate line where the information relates to a consumer credit contract, or to remove the relevant information or the relevant order and explicitly add the following text:" not applicable for this type of loan, where the information does not apply to the type of credit.

3. The indications referred to in the space between the brackets, refer to the information which must be completed by the creditor.

4. In part I, item 1, the creditor should indicate their name or the name and legal form, as well as VAT, provided by the registry Agency, or code BULSTAT.

5. In part I, paragraph 2, the creditor shall indicate their seat and address of management.

6. In part I, item 7 the credit intermediary must indicate their name or the name and legal form, as well as VAT, provided by the registry Agency, or code BULSTAT.

7. In part I, item 8 credit intermediary should indicate their seat and address of management.


8. in part II, item 5 the creditor should indicate the amount, number and frequency of payments to be made by the user, and the way of payment of interest and costs. When the space provided on the form to fill out that data is not enough, the creditor shall indicate them in a separate sheet, which shall form an integral part of this form by the appointed place on the form specifically states that repayments are in accordance with the annex.

9. in part II, item 6 the creditor should indicate the amount of the total amount of credit and total cost of the credit to the consumer.

10. in part II, item 8 the creditor should indicate the type of security.

11. In part II, item 9 the creditor should indicate that such credit agreements do not provide for a guarantee by a third party as security for repayment of the total amount of credit (capital), agreement, except where such is provided.

12. in part III, item 1, the creditor should indicate interest rate on the loan-fixed or variable (expressed with the index or reference rate applicable to the initial borrowing rate), the period of remuneration, conditions and procedure for changing the borrowing rate.

13. in section III, paragraph 2, the creditor shall indicate the APR, as well as a representative example, taking into account all the assumptions used in the calculation of the Apr. When the type of credit is provided with different interest rates or costs, the creditor States that they can lead to the calculation of the higher APR.

14. in part III, item 3 the creditor should indicate the type of insurance and/or additional service when obtaining a loan under specific conditions be offered their required provision. The creditor must inform their presence. If the costs of these services are not known to the creditor, they are not included in the annual amount of expenditure.

15. in part III, point 4.6 creditor should indicate the interest rate on overdue payments, ways of its formats and all other costs that are attributable to late payments for this type of loan.

16. in section IV, paragraph 1 should creditor pointed out that the user has the right of withdrawal from the credit agreement within 14 calendar days from the date of conclusion of the credit agreement or on the date on which the consumer receives the terms of the contract, if this date is after the date of conclusion of the contract.

17. In part IV, item 2 the creditor should indicate that the user has the right at any time to discharge fully or partially his obligations under a credit agreement.

18. In part IV, item 3 the creditor should indicate the method of determining the compensation, which is entitled to receive upon early repayment of the loan in accordance with the conditions under art. 27.19. In part IV, item 5 the creditor should indicate that the user has the right to receive, upon request and free of charge in advance a copy of the draft credit agreement.

20. in part IV, point 6, the creditor should indicate the period during which the pre-contractual information provided is valid.

21. in part V, paragraph (a), item 1, the creditor should indicate the name or designation of the representative of the creditor domiciled in the country where the consumer resides.

22. in part V, paragraph (a), paragraph 2, the creditor should indicate the management headquarters and registered address of its representative.

23. in part V, paragraph (a), point 7 the creditor should indicate the trade register in which is recorded, along with his single identification code provided by the registry Agency (UIC) or code BULSTAT. Where the creditor is from another State, the latter shall indicate that the register in which is recorded, together with its registration number, or equivalent means of identification in that register.

24. in part V, point b, paragraph 1 the creditor should provide instructions for exercising the right of withdrawal, which indicate the time-limit for the exercise of that right, the address to which notification should be sent in order to exercise the right of withdrawal, and the consequences of non-exercise of that right.

25. in part V, point (b), item 3, the creditor should indicate the relevant clause of the Treaty concerning the applicable law or the competent court.

26. in part V, point b, paragraph 4, the creditor shall indicate the language in which the pre-contractual information is provided, as well as the information contained in the contract.

27. in part V, (c) the creditor shall indicate the existence of processes for complaints and to seek compensation from the user, which is a party to a credit agreement from a distance, and how to access them.

For the creditor: signature and stamp:

Position: date:

Annex 3 to the art. 8, al. 2

Standard European form for submitting information about contracts for overdraft

The information in this form does not have the power of a proposal to conclude a contract and does not oblige the creditor to give you the credit product to which that information relates.

Part i. identification data and contact details of the creditor/credit intermediary:



1. A creditor





(Credentials)

 









2. Address





(An address that will be used by the user)









3. Phone number *





 









4. electronic

address *





 









5. Fax *





 









6. The Internet

page *





 












 

Where relevant for the type of contract for overdraft:



7. Mortgage Broker





(Credentials)

 









8. Address





(An address that will be used by the user)

 









9. Telephone

number *





 









10. Email address *





 









11. Fax *





 









12. The Internet

page *





 











 

Part Ii. Description of the main features of the contract for overdraft: 1. type of credit





 









2. the total amount of credit-contract for overdraft

(The maximum size (the limit) or the total sums made available under the credit agreement)





 









3. Duration of the overdraft





 









4. Where relevant for the type of overdraft:

The creditor may ask you at any time to fully pay off the loan.





 











 

Part Iii. Costs of overdraft: 1. the interest rate on the loan and the conditions for its implementation and, if appropriate for the type of overdraft, the different rates that are relevant for the overdraft.





(%

– Fixed or

-Variable (with the index or reference rate applicable to the initial borrowing rate)

-Periods)









2. Where relevant for the type of overdraft: APR

(The total cost to the user, present or future, expressed as an annual percentage of the total DIS-





(% indicates Here a representative example mentioning all the assumptions used for the calculation of interest rate)









MER of the credit)

The APR allows you to compare different proposals for conclusion of a contract.





 









3. Where relevant for the type of overdraft:

Conditions under which those charges may be changed.





(The applicable costs from the moment of conclusion of the contract for an overdraft)









4. costs payable on late payments

Missed payments could lead to adverse consequences for you (including force ful performance) and make it difficult to obtain credit.





You have to pay (... ... (applicable interest rate and arrangements for its change and, where applicable, interest on arrears) for missed payments)











 

Part Iv. Other important terms of the contract for an overdraft facility:



1. Termination of the contract for an overdraft (conditions and methods for termination of the contract for an overdraft)









2. Making reference to the central credit register or in another database used in the Republic of Bulgaria to assess consumer credit tosposobnostta.

Where the creditor refuses to provide you with the loan on the basis of the examination carried out in central credit register or in another database, it is required to notify you immediately and without charge of the result of the completed report and the information contained herein for you.

This does not apply to cases where the provision of such information is prohibited by EU legislation or is contrary to the requirement to ensure public order and security.





 









3. Where relevant for the type of overdraft:

The period for which the creditor is bound by the pre-contractual information.





This information is valid for the period of ... to ...











 

Part V. Where relevant for the type of overdraft, additional information in the provision of financial services at a distance: a) in respect of the creditor:



1. Where relevant for the type of overdraft: representative of the lender, established in the country of residence of the user





 

(Credentials)









2. Address





(Address, intended for use by the user)









3. Phone number *





 









4. E-mail address *





 









5. Fax *





 









6. Web page *





 









7. Where relevant for the type of overdraft:

Registration





(The trade register in which the creditor is entered, along with CONTRAST provided by the registry Agency, or code BULSTAT)









8. Where relevant for the type of overdraft:

Supervisor





 

 











 

(b)) in respect of the credit agreement:



1. Where relevant for the type of overdraft:

The right of withdrawal from the contract.


You have the right within 14 calendar days to withdraw from the contract

Where relevant for the type of overdraft:

Exercising the right of withdrawal





 

Yes/No

(Practical guidelines on the exercise of the right of withdrawal indicating also the address to which notification should be sent in order to exercise the right of withdrawal, and the consequences of non-exercise of the right of withdrawal)









2. Where relevant for the type of overdraft:

The law, of which the creditor refers to establish relations with you before the conclusion of the credit agreement.





 









3. Where relevant for the type of overdraft:

Clause on the law applicable to the credit agreement and/or the competent court in the event of a dispute





 

 

 

(The relevant clause to be introduced here)











 

c) with respect to extrajudicial means for compensation of the user:



The presence of non-judicial methods of alternative dispute resolution and to seek compensation





Are there any extrajudicial means for bringing claims for compensation and search from the user side, under a credit agreement from a distance, as well as ways for users to access them











 

INSTRUCTIONS for COMPLETING the annex 3:

1. Anywhere marked characters, reducing replenishment of the relevant information is optional for the creditor.

2. Wherever noted "When applicable for the type of credit, the creditor must fill out the appropriate line where the information relates to a contract for an overdraft, or to remove the relevant information or the relevant order and explicitly add the following text:" not applicable for this type of loan, where the information does not apply to the type of credit.

3. The indications referred to in the space between the brackets, refer to the information which must be completed by the creditor.

4. In part I, item 1, the creditor should indicate their name or the name and legal form, as well as VAT, provided by the registry Agency, or code BULSTAT.

5. In part I, paragraph 2, the creditor shall indicate their seat and address of management.

6. In part I, item 7 the credit intermediary must indicate their name or the name and legal form, as well as VAT, provided by the registry Agency, or code BULSTAT.

7. In part I, item 8 the creditor should indicate the management headquarters and registered address of the credit intermediary.

8. in part III, item 1, the creditor should indicate interest rate on the loan-fixed or variable (expressed with the index or reference rate applicable to the initial borrowing rate).

9. in part III, paragraph 2, the creditor shall indicate the APR, as well as a representative example, taking into account all the assumptions used in the calculation of the Apr. When the type of credit is provided with different interest rates or costs, the creditor States that they can lead to the calculation of the higher APR.

10. in part III, item 3 the creditor should indicate all the costs applicable from the time of conclusion of the contract for an overdraft facility.

11. in part III, paragraph 4, the creditor shall indicate the interest rate on overdue payments, ways of its formats and all other costs that are attributable to late payments for this type of loan.

12. In part IV, point 1, the creditor should indicate the conditions and procedure for termination of the contract for an overdraft facility.

13. In part IV, item 3 the creditor should indicate the period for which the pre-contractual information provided is valid.

14. in part V, paragraph (a), item 1, the creditor should indicate the name or the name of its representative in the country in which the consumer resides.

15. in part V, paragraph (a), paragraph 2, the creditor should indicate the management headquarters and registered address of its representative.

16. in part V, paragraph (a), point 7 the creditor should indicate the trade register in which is recorded, along with CONTRAST provided by the registry Agency, or code BULSTAT. Where the creditor is from another State, the latter shall indicate that the register in which is recorded, together with its registration number, or equivalent means of identification in that register.             

17. In part V, point b, paragraph 1 should creditor pointed out that the user has the right of withdrawal from the credit agreement within 14 calendar days, and to provide instructions for exercising the right of withdrawal, which indicate the time-limit for the exercise of that right, the address to which notification should be sent in order to exercise the right of withdrawal and the consequences of non-exercise of that right.

18. in part V, point (b), item 3, the creditor should indicate the relevant clause of the Treaty.

19. in part V, (c) the creditor should indicate whether there are any extrajudicial methods for submission of complaints and to seek compensation from the user side, under a credit agreement from a distance, as well as how to access them.

For the creditor: signature and stamp:

Position: date:

Annex 4 to the art. 5, al. 3

Pre-contractual information in the case of credit agreements as per art. 4, al. 1, 2 and 3

The lender and/or credit intermediary is obliged to provide the user with the following information:

1. name of the creditor/credit intermediary;

2. Address;

3. Telephone number;

4. Fax;


5. type of credit;

6. the total amount of credit (capital);

7. the duration of the credit agreement;

8. An indication of the size, number, frequency and dates of payments to be made;

9. Total amount due on the loan (total loan amount (principal) plus interest and expenses, which may arise in connection with the loan);

10. the Required collateral;

11. the interest rate on the loan;

12. the annual percentage rate of charge (APR) of the loan;

13. Costs payable on overdue payments;

14. Costs due to early repayment of the loan;

15. other contract-related expenses;

16. Additional obligations arising in connection with the credit agreement, when such are provided (required the conclusion of a contract of insurance or other contract for additional service obligation to open an account on the loan);

17. Period of time during which the creditor is bound by the above information.

1633