Taking out a loan is a major step that carries responsibilities but also a range of rights guaranteed by law. Knowing these rights helps you make an informed decision and protects you from unfavourable terms or unfair practices. Here are the fundamental rights every borrower in Bulgaria should know.
Right to Clear and Transparent Information
Before you sign a contract, you have the right to receive full and understandable information about all terms. The bank or financial institution is obliged to provide you with:
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The type of loan and currency;
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The term and the amount of instalments;
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The interest rate (fixed or variable);
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All fees and commissions;
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Consequences of late payments. This ensures you know not only your monthly payment but also the total cost of the loan.
Right to a Standard European Form
Before signing, you must receive the European Standardised Information Sheet (ESIS). This document makes it easier to compare offers by presenting data in a unified format across the EU.
Right to Information on the Annual Percentage Rate (APR)
The APR (Annual Percentage Rate) is the indicator that includes not only the interest but also all fees and costs associated with the loan. You have the right to know the exact APR to assess the real price of the credit and avoid hidden charges.
Right of Withdrawal
For Consumer Loans: According to Art. 29 of the Consumer Credit Act, you have the right to withdraw from the contract within 14 calendar days without giving a reason. You simply need to notify the lender in writing and return the principal plus the interest accrued for the period you held the funds. No penalties or fees are due for this withdrawal.
For Mortgage Loans: The law is different here. Mortgages are regulated by the Act on Real Estate Loans for Consumers. It does not provide a 14-day right of withdrawal after signing. Instead:
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Right to a 7-day reflection period: The bank is obliged to provide you with the ESIS and a draft contract in advance, which you can review before signing.
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During this period, you can compare offers and decide if the terms are right for you.
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Once signed, however, there is no right to unilateral withdrawal without consequences, as the contract is secured by a mortgage.
Right to Early Repayment
A borrower has the right to repay their loan partially or in full at any time before the deadline. While the bank may charge a small fee (if specified in the contract), in many cases it is capped by law or not payable at all.
Protection Against Unfair Practices
You are under no obligation to accept unclear or misleading terms. The law protects consumers from:
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Hidden fees;
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Forced bundling with unnecessary additional products;
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Misleading advertising.
Right to File a Complaint
If you believe your rights have been violated, you have the right to seek assistance from:
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The Commission for Consumer Protection (CCP);
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The Bulgarian National Bank (BNB);
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The court or an independent mediator.
How Mortgage Brokers Help You Exercise These Rights
While your rights are guaranteed by law, navigating dozens of offers and complex contracts can be difficult. This is where Creditchoice Ltd. comes in.
With our help, you receive:
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Free consultation and access to offers from multiple banks;
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A comparison of terms in a transparent and understandable format;
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Support with documentation and communication with the bank;
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An objective choice with no additional fees for the client.
As a borrower, you have rights—from clear information and withdrawal to early repayment and protection against unfair practices. Knowledge of these rights is the key to your security.
For confidence that you are making the best decision for your financing, trust the professional help of Creditchoice Ltd. – because your rights are our priority.
