Several days ago, parliament began to consider and vote on the second reading amendments to the Consumer Credit Act, which, judging by the texts aim to protect borrowers from greedy banks and other creditors who accumulate fabulous wealth on the back of naive and less educated customers. If texts pass second reading in plenary (which at present seems more than likely), however, they will have the following logical consequences:
1) Cut quick access to working capital loans of the lowest income groups for which these loans, albeit at a higher price, are the only chance to make ends meet and unforeseen costs. These citizens anyway and now have no access to bank credit because they can not provide the required collateral and proof of steady income over a certain amount. With amendments to these groups will actually be pushed demand for loans from illegal moneylenders in which the legal protection of the borrower is zero. 2) appreciation of loans to ensure banks against the higher risk, resulting from the adopted text. Let’s look in detail votes bill to make it clear how stem the above mentioned effects. – First change assimilated legally so. Called.
Fast loans (up to 400 lev) to all other consumer loans. This means that these loans will be subject to comprehensive regulation and control of the subject and larger loans, ie it is likely to appreciate to reflect the burden of the additional requirements. Secondly banks will no longer be able to collect several types of taxes, namely – fee for “actions, approval and uptake of credit and its management.” However, in the changes specifically stated that banks can collect fees and commissions for additional services.