The APR cap and the clauses the law declares void
Short answer
Bulgarian consumer credit law caps the annual percentage rate of charge at five times the statutory interest rate and declares void any term that exceeds that cap.
How the number is produced
The cap is not a fixed percentage but a formula: five times the statutory interest rate. That rate is set by government decree and, from 1 January 2026 with the introduction of the euro, is calculated on a new basis — the European Central Bank’s main refinancing rate plus a set number of percentage points. So the current value has to be checked as at the date of the agreement, not copied from an old article.
The clause is void, not necessarily the contract
Where a term exceeds the cap, the law treats that term as void. That does not automatically mean the whole agreement falls away or that nothing is owed — the effect on the remaining terms and on the amount due is assessed on the specific contract and established by the court.
What counts inside the APR
The APR includes interest and all other direct and indirect costs, commissions and remuneration connected with the credit. A charge given a different name therefore does not automatically fall outside the calculation — what matters is its economic role, not its label in the tariff.
Frequently asked questions
- Can I judge for myself whether the cap is exceeded?
- A rough check is possible by comparing the APR stated in the agreement with the current cap. The legal conclusion, however, is drawn on the specific contract — that is work for a lawyer.
- What if the agreement does not state an APR?
- Stating the APR is a mandatory element of a consumer credit agreement. Its absence or inaccuracy is a ground for dispute and is assessed by the court.
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