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Bulgarian Parliament Moves to Cap Enforcement Agent Fees.

The fees charged by private enforcement agents (PEAs) will be capped, most probably at 10% of the amount of the debt, according to legal amendments passed at first reading in Parliament on Wednesday.

The amendments to the Civil Procedure Code were proposed by center-right ruling party GERB.

Under the existing regime, there is no ceiling for the fees charged by PEAs in the course of the enforcement proceedings.

According to data presented by GERB MP Emil Radev, one of the initiators of the amendments, PEAs collected around BGN 428 M in 2010 from writs of execution and interests, of which some BGN 78 M, or 16.4% had been calculated as fees and extra expenses.

The proponents of the legal amendments presented statistics indicating that in some cases the proportional fees charged by PEAs amounted to over half of the debt or even surpassed it.

The introduction of a cap on enforcement fees was backed by opposition MPs from the Bulgarian Socialist Party (BSP).
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Publication:Sofia News Agency
Date:Mar 29, 2012
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