Improving protection in financial services for Bulgarian consumers

Optimal consumer protection in financial services and high consumer financial capability are at the heart of a financial sector in Bulgaria that aims to be effective, competitive, and fair. Regulation of consumer protection and access to financial education programs have become highly relevant due to the global financial crisis and subsequent government attempts to reduce risks to financial stability. A 2009 World Bank report found gaps in Bulgaria’s financial consumer protection framework and recommended: i) strengthening the institutional structure; ii) improving rules on consumer disclosure; iii) reinforcing rules governing financial institutions’ consumer business practices; iv) improving consumer complaint mechanisms; and v) expanding financial education for consumers. A 2010 World Bank survey3 found that consumers have low trust in private financial institutions and that a large percentage have limited financial information and knowledge, preventing them from making advantageous financial decisions.