---
title: "How to Recover Overpayments on Payday Loans in Bulgaria"
description: "How to identify unfair terms in a payday loan agreement and recover overpaid amounts from lenders through the courts."
url: "https://www.da-law.eu/en/insights/recovering-overpayments-on-payday-loans"
lang: en
author: "Viktor Valev"
published: 2025-03-30
updated: 2026-10-18
category: "Civil Law"
---

# How to Recover Overpayments on Payday Loans in Bulgaria

Author: Viktor Valev · Published: 30 March 2025 · Updated: 18 October 2026

*How to identify unfair terms in a payday loan agreement and recover overpaid amounts from lenders through the courts.*

## Key points

- Payday loan agreements are governed by the Consumer Protection Act, which prohibits unfair terms (Art. 143).
- The terms most often found unfair concern fees, penalties, compensation for late payment and acceleration clauses.
- Overpaid amounts can be recovered through the courts, calculated on the basis of the agreement, the repayment schedule and the instalments paid.
- Keep all correspondence with the lender. If you stop paying, the debt may be assigned to a debt collection agency.

## What Is a Payday Loan Agreement?

Payday loans are granted by non-bank financial institutions. These are companies that are not banks but are registered with and supervised by the Bulgarian National Bank. Their principal activity is the provision of financial services, including short-term consumer loans.

Such agreements fall within the scope of the Consumer Protection Act, which transposes into Bulgarian law Council Directive 93/13/EEC of 5 April 1993 on unfair terms in consumer contracts.

## What Is an Unfair Contract Term?

Art. 143 of the Consumer Protection Act provides as follows.

> “An unfair term in a contract concluded with a consumer is a stipulation to the detriment of the consumer which does not meet the requirement of good faith and leads to a significant imbalance between the rights and obligations of the trader or supplier and the consumer.”

### The Most Common Unfair Terms in Payday Loan Agreements Concern

- fees and commissions;
- compensation for late payment and default;
- penalties for non-performance;
- termination of the agreement and acceleration of the debt;
- security;
- currency conversion and exchange rate risk;
- the burden of proof;
- insufficient or unclear pre-contractual information.

### Case Law Sets Out the Mandatory Conditions for a Term to Be Unfair

- the term has not been individually negotiated with the consumer;
- it was agreed in breach of the principle of good faith;
- it creates a significant imbalance in the parties' rights and obligations (a material and unjustified disparity);
- it operates to the detriment of the consumer.

## The Right to Recover Overpaid Amounts

If you find that you have overpaid on your loan, you are entitled to reclaim the amounts, first by a written claim to the lender and, if refused, through the courts. This applies to banks as well as to payday lenders.

## How Can You Tell How Much You Have Overpaid?

The exact amount overpaid should be calculated on the basis of

- your loan agreement;
- its repayment schedule;
- information on the instalments paid.

Before a precise calculation, you can make a rough estimate. Experience shows that overpaid amounts most often range between **50% and 100% of the principal**. The exact percentage depends on the lender's terms and the repayment period.

## Is There a Limitation Period for Claiming Overpayments?

Yes. A claim for the return of overpaid amounts is subject to the general **five-year** limitation period (Art. 110 of the Obligations and Contracts Act). However, according to the Court of Justice of the EU, the period cannot automatically run from the date of each payment if the consumer did not know, and could not reasonably have known, that the term was unfair (judgments of 10 June 2021 in Joined Cases C‑776/19 to C‑782/19 and of 25 April 2024 in Cases C‑484/21 and C‑561/21). In some cases, therefore, amounts paid more than five years ago may also be recovered. When the period starts to run is assessed case by case.

## What Should You Do If You Suspect You Have Overpaid?

If you suspect that you have paid more than you should have, it is best to seek professional legal advice. A lawyer can

- review your agreement carefully;
- assess whether it contains unfair terms or unlawfully charged fees and costs;
- help you protect your rights.

**Acting in good time is essential**, because if you stop paying, the lender may assign (sell) your debt to third parties, most often debt collection agencies.

Keep all correspondence with your lender, including letters and emails, as it may prove useful later.

If the lender refuses to refund the overpaid amounts voluntarily, our [dispute resolution and debt collection](https://www.da-law.eu/en/services/dispute-resolution-and-debt-collection) team can assist you with an out-of-court claim or court proceedings.

## Legal basis

- [Consumer Protection Act (Закон за защита на потребителите): Art. 143](https://www.lex.bg/laws/ldoc/2135513678)
- Council Directive 93/13/EEC on unfair terms in consumer contracts
- [Obligations and Contracts Act (Закон за задълженията и договорите): Art. 55 and 110](https://lex.bg/laws/ldoc/2121934337)
- [Judgment of the Court of Justice of 10 June 2021, Joined Cases C‑776/19 to C‑782/19](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:62019CJ0776)
- [Judgment of the Court of Justice of 25 April 2024, Case C‑484/21](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:62021CJ0484)

## Frequently asked questions

### What is an unfair term?

A stipulation to the detriment of the consumer which has not been individually negotiated, is contrary to the requirement of good faith and creates a significant imbalance between the rights and obligations of the lender and the consumer (Art. 143 of the Consumer Protection Act).

### Which terms in payday loan agreements are most often unfair?

Fees and commissions, compensation for late payment, penalties, termination and acceleration clauses, security, exchange rate risk, the burden of proof and unclear pre-contractual information.

### How can I find out how much I have overpaid?

The calculation is based on the loan agreement, the repayment schedule and information on the instalments paid. A lawyer can assess which terms are unfair and what part of the amounts paid is recoverable.

### What is the limitation period for recovering overpayments?

The general five-year period under Art. 110 of the Obligations and Contracts Act. According to the case law of the Court of Justice of the EU, it does not run automatically from each payment if the consumer did not know, and could not reasonably have known, that the term was unfair. The starting point is assessed case by case.

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*The information on this website is not legal advice and does not create an attorney–client relationship. Every case has its specifics and requires an individual approach. For a professional opinion and a tailored strategy, please contact us.*

Source: https://www.da-law.eu/en/insights/recovering-overpayments-on-payday-loans