Banks won’t be able to change unilaterally the methodology for calculating the interest rate after signing the loan contract
July 15, 2010
The National Assembly passed at the sitting on 15 July 2010, at second reading, amendments to the Consumer Credit Act. The latter stipulate that banks can not unilaterally alter the methodology for calculating the interest rate after the conclusion of the credit agreement. The proposal was submitted by the chairman of the parliamentary Economic Committee Martin Dimitrov and MP Stoyan Mavrodiev.
Deputies agreed that the landing institutions should publish on their web sites their current interest rates and and the referential interest percentages they use along with the methodology for their calculations.
The creditor is obliged as well, to maintain, at his internet site, data of all the interest rates of the bank in the past. Violations and changes in methodology will be fined anywhere between BGN 700 and 2 000 for individuals and BGN 3 000 to 8 000 for businesses. The amendments will become effective one month after promulgation in the State Gazette.