A Precedent on Bank and Credit Contracts

On 30th October, 2013 the 'Ovcharov & Parushev" team achieved yet another success, now in the field of the Bank Law. By Decision of 30.10.2013 the Sofia Regional Court granted all claims filed against the DSK bank, finding unequal power contracting upon which the bank had unilaterally risen the interest rate on the credit. It is unacceptable, according to the court, for the creditor to unilaterally and arbitrary to determine the interest rate while there lacks any consent on behalf of the other party who received the credit. Such decision affirms a still new case-law on matters concerning the rights under the Banks Act and Consumer Protection Act of the banks, who have unequal power in credit contracts, compering to the other party - the loan borrowers.  

What is innovative and contributive in that decision reasonings, is that the court found breach of basic principles of the Commercial Law and the Civill Law in general, provided for in the national Contracts and Obligations Act.  Our team has been arguing for such decision for years, since the lede specials   in the bank matters often deviate form main principles of the Contract Law and even of the Roman Law - after formation of a contract, no unilateral amendments in its conditions could be valid. 

The lawyers team of our law firm express its gratitude towards our client for all the support and proffesionalism in solving the case. Having strong belief in justice we continue working in our clients benefit, facing the particularities on the Bulgarian justice system, as well as the challenges in finding suitable solutions in view of clients best interest. 

On the case worked Silvia Ovcharova, attorney-at-law, junior partner in the firm.