PROCEDURE FOR GRANTING CONSUMER LOANS TO
INDIVIDUALS OF UTECREDIT BULGARIA EOOD

In force as of 01.01.2026

1. INTRODUCTION
1.1. “UteCredit Bulgaria” EOOD, with management address: Sofia 1407, ul. 38 Cherkovna Street, fl. 1, office 4, with UIC: 205559807, email: , tel: 0700 40 111 (hereinafter referred to as the “Lender”) is a financial company licensed by the Bulgarian National Bank.
1.2. This Procedure for granting consumer loans to individuals (hereinafter referred to as the “Procedure”), the Tariff and the principles for processing customer data described in the Personal Data Privacy Policy form an integral part of and apply to all contracts concluded between the Lender and the Client and are available on its website.
1.3. The Creditor has the right to unilaterally amend the Procedure, the Tariff and the Personal Data Privacy Policy by informing the clients of the changes at least 10 (ten) calendar days before their entry into force.
1.3.1. If the Client does not agree with the change(s), he/she has the right to terminate the Contract(s) by notifying the Creditor thereof in writing or in another agreed way within the period for consideration specified in clause 1.3. and after fulfilling all its obligations arising from the Contract(s).
1.4. If the Client does not exercise his/her right provided for in clause 1.3.1. to terminate
the Contract(s), it shall be considered that he/she has accepted the amendments and thereby declared that he has no subsequent claims against the Lender in connection with the amendments to the Procedure, the Personal Data Privacy Policy or the Tariff.
1.5. The notice period set out in clause 1.3 shall not apply in the event that the change becomes more favourable to the Client (e.g. reduction of fees) or in the event that new services are added.
1.6. The procedure and any and all contracts concluded on the basis of it shall be governed by the laws of the Republic of Bulgaria.
1.7. The Client may at any time open the Procedure on the Lender’s website.
2. DEFINITIONS
For the purposes of the Procedure, the following terms shall have the following meanings:
2.1. Framework Agreement for Consumer Loans – an agreement legally binding on the Lender and the Client, which stipulates the conditions related to the Client Profile, the Personal Credit Limit within the framework of which consumer loans are granted and additional services related to consumer loans.
2.2. Contract – a legally binding agreement between the parties, according to which the Lender has agreed to provide and the Client has agreed to receive a consumer loan. Each agreement consists of the Lender’s Procedure, the Framework Agreement, the Credit Agreement, the Tariff, the terms of the Privacy Policy and all other agreements, mutual arrangements and all annexes to any
agreements concluded between the Parties (including any amendments and supplements), as well as each individual Credit Agreement.
2.3. Repayment schedule – a legally binding document that contains information regarding the repayment installments due, their maturity and other conditions related to their payment, as well as a summary of each installment broken down by item, including the principal, remunerative interest and other additional costs.
2.4. Consumer Credit or Credit – a consumer loan granted to an individual (Client) under the CPA, including for the purchase of goods and services or for refinancing of already existing monetary obligationsYes.
2.5. Personal Credit Limit (PPCL) – represents the maximum amount that the Client can receive as a loan from the Lender.
2.6. Client Profile – a client profile opened and maintained by the Lender on the
MyIute platform on the basis of the Framework Agreement, representing the contractual relationship of the Client with the Lender and containing information related to the loan agreements, rights, obligations, balances, transactions and other relevant data of the Client. The customer account is not a payment account.
2.7. Additional fees – any other fees for services that are not included in the Loan Agreement or in the Secured Loan Agreement, which are requested by the Client and which the Lender has provided. The additional services and their value are specified in the Tariff published on the Lender’s website.
2.8. Applicable laws – Consumer Credit Act, Obligations and Contracts Act, Consumer Protection Act, Electronic Document and Electronic Signature Act, Distance Financial Services Provision Act, as well as other applicable laws and regulations regulating this matter.
2.9. Application – An application for approval of a Loan, submitted in writing, electronically or orally by the Client to the Lender.
2.10. APR – The annual percentage rate of the cost of the loan, which includes current or future costs (interest, other direct or indirect costs, commissions, fees of any
kind, including those due to intermediaries for the conclusion of the contract), expressed as an annual percentage of the total amount of the loan granted. The annual percentage rate of loan costs is calculated according to a formula according to Appendix No. 1 of the Consumer Credit Act, taking into account the general provisions and assumptions set out in the Consumer Credit Act. For the avoidance of doubt, no voluntary and/or additional fees are taken
into account in the calculation of the APR.
2.11. Creditworthiness assessment – A process of assessing the creditworthiness and financial capabilities of the Client and checking the probability of repayment of the Loan.
2.13. CCR – the Central Credit Register, maintained by the Bulgarian National Bank and acting in accordance with Ordinance 22 on the Central Credit Register.
2.14. NSSI – National Social Security Institute, which has data on social security contributions and the income of individuals in Bulgaria.
2.15. Credit Intermediary – a third party authorized by the Lender, which, in accordance with the instructions of the Lender, may assist the Client in applying by facilitating the submission of loan applications and providing access to the loan documentation prepared by the Lender, without being authorized to represent, bind or enter into agreements on behalf of the Lender.
2.16. Electronic signature – a signature of an electronic document by means of a secure access code or authentication mechanism using a mobile device, in accordance with the applicable requirements for electronic signature and strong authentication of the client, which signature is equivalent to the handwritten signature
2.17. Fees – all fees charged by the Lender in accordance with the Agreement.
2.18. Procedure – this Procedure for granting consumer loans to individuals.
2.19. Interest – an amount paid by the Client to the Lender as remuneration for the granted Loan.
2.20. Loan amount – the amount of the loan as defined in the Consumer Loan Agreement.
2.21. Credit Agreement – a consumer credit agreement concluded for granting a Loan, including for the purchase of goods and services or for refinancing of already existing monetary obligations with all annexes, as well as a Collateral Agreement with all annexes.
2.22. Client – a natural person who has entered into contractual relations with the Lender and applies for the use of the products and services offered by the Lender.
2.23. Client reference number – a unique number given to each individual Client;
2.24. Contract Reference Number – a unique number of each individual Consumer Credit Agreement.
2.25. EUR – EUR. Loans are approved and granted by the Lender in EUR and reimbursed by the Client in EUR (EUR).
2.26. MyIute – an online environment that offers customers the opportunity to register a Client Profile, apply for loans, view loan balances and upcoming events in one general view, helping customers to repay their loans smoothly and on time.
2.27. Parties – as specified in the Loan Agreement.
2.28. Repayment date – the date on which the Client is obliged to repay the Loan, including all fees thereto.
2.29. Suspension fee – the amount of the fee that the Client must pay if he wishes to request the suspension of the respective monthly installment. The amount of the suspension fee is determined by the creditor’s tariff. The Client can use this right once for each monthly installment
of 2.30. Tariff – Price list for the additional services and activities of the Lender. The tariff is published on the Lender’s website.
2.31. Website – The Lender’s website is www.iute.bg.
2.32. UtePay – UtePay Bulgaria EOOD, a licensed electronic money institution within the meaning of the Payment Services and Payment Systems Act, through which the utilization and repayment of credit(s) concluded between the Client and the Lender, including through collection by direct debit, as well as all other payment transactions admissible under the applicable legislation and the Client’s contract with UtePay Bulgaria Ltd.
2.33. Direct debit – means a payment transaction carried out in accordance with the applicable law at the initiative of the Creditor on the basis of a prior and explicit consent given by the Client to UtePay, by which the Client authorizes the Creditor, in accordance with the applicable legislation, to collect by direct debit the amounts due under the individual credit agreements concluded between the Client and the Lender from his payment account, supported in UtePay.
2.34. Account” or “Payment Account” – a payment account opened and maintained in the name of the Client with UtePay
3. GENERAL PRINCIPLES FOR CONCLUDING A CONTRACT
3.1. The creditor has the right to decide with whom to conclude or not to conclude contracts (freedom of contract).
3.2. The Creditor may approve and conclude a Contract if the following conditions are met:
3.2.1. The client is a natural person, a citizen of the Republic of Bulgaria, has reached the age of 18 and is legally capable of concluding a contract;
3.2.2. The identity of the Client has been duly verified;
3.2.3. The Client has income and can afford the Loan as from the Clientso that he may be asked to submit documents proving his income;
3.2.4. The Client has requested a Loan from the Lender and it has been approved;
3.2.5. The Client has entered into a payment account agreement with IutePay and has an active payment account with IutePay
3.2.6. The Client accepts and signs a Framework Agreement;
3.2.7. The Client accepts and signs the Loan Agreement and its annexes and/or any other agreement that is considered necessary (e.g. Collateral Agreement, etc.);
3.3. The approval of the Loan is subject to the creditworthiness assessment (hereinafter referred to as the “Assessment”). The lender may also approve the Loan on the basis of data from its internal database.
3.4. The Creditor will not conclude contracts with persons who are not Bulgarian citizens and with Clients who do not submit or refuse to submit the data/documents requested by the Lender for the purposes of identification and verification and/or for assessment of their creditworthiness and verification of their financial capabilities, as well as in accordance with the requirements of the Creditor upon its request, fail to provide sufficient
data or documents to verify the legality of their funds, or there are other grounds for suspicion of money laundering (including the use of a dummy) or terrorist financing.
3.5. The Creditor will not enter into contracts with clients who have caused direct or indirect damage to the Creditor or the threat of real damages, or have caused damage to the Creditor’s reputation, or have obligations to the Lender.
4. SUBMISSION OF AN APPLICATION FOR GRANTING A LOAN
4.1. The Client applies for a Loan in person by submitting an Application to the Lender. The submission of the Application may be made through the Lender’s website, by telephone, through a mobile application (MyIute) or at a Credit Intermediary or through another channel provided by the Lender.
4.1.1. In order to submit an Application for Credit through the available digital channels, the Client will need to provide the Lender with access to the camera and microphone of their phone for the purposes of identity verification. The Client should have a telephone connected to the Internet, as well as appropriate hardware and software on it, and the Client’s phone may need a fingerprint reader and/or facial recognition capabilities.
4.2. In the Application, the Client declares his/her personal data, e-mail, contact phone, etc., as well as the requested amount of the Loan and the requested term of the Loan.
4.3. The Creditor shall not be liable for errors in the submission of the data made by the Client, and the consequences of such errors shall be at the expense of the Client.
4.4. By submitting the Application, the Client must give consent for the Lender to consult the Central Credit Register (CCR) and the National Social Security Institute. The Client agrees and confirms that the consent provided to the Lender to receive inquiries from the CCR and the NSSI will be applicable to all requests that the Client has made to the Lender within the framework of the Framework Agreement, in accordance with the operational rules for the manner and procedure for using the data from the CCR and the NSSI.
4.5. Before the Lender accepts to grant a loan, the Client must declare whether or not he is a prominent political person or is related to such a person (hereinafter referred to as the “IDP”).
4.6. Before signing the Creditor AgreementPaysera will provide the Client with all pre-contractual documentation for the requested Loan, as well as the terms of the Loan.
5. PRINCIPLES OF CUSTOMER IDENTIFICATION AND KNOW YOUR
CUSTOMER (KYC)
5.1. The Client, and in exceptional cases his/her representative, shall provide the data and documents required by the Lender for identification and verification of the Client.
5.2. The Client is identified and verified on the basis of identity documents that are in accordance with the legislation and are accepted by the Lender (e.g. passport, identity card).
5.3. The Client or his/her representative may be identified and verified by a means of communication accepted by the Lender or by a means of digital identification.
5.4. The Lender accepts that the documents submitted by the Client are authentic, valid and correct.
5.5. The Creditor will make a copy of the documents submitted by the Client and store it, physically and/or electronically, in accordance with the rules of the Personal Data Privacy Policy.
5.6. The creditor applies both Bulgarian and international measures to prevent money laundering, terrorist financing and tax evasion, as well as measures for the application of sanctions. Therefore, the Lender knows its Clients, as well as their activities (including their economic activity) and the origin of the Clients
‘ funds (applying the “Know Your Customer” principle). Based on these considerations, the Creditor has the right and obligation to:
5.6.1. regularly check the identification information of the Client or
the Client’s representative and receive additional documents and data (including
citizenship, tax residence, place of residence) from the Client throughout the entire period of the contractual relationship with the Client;
5.6.2. regularly and/or at its own discretion requests documents and data regarding the Client’s activities, incl. data on the purpose and nature of the transactions and the legal origin of the Client’s assets used in the transactions;
5.6.3. to monitor how the Client uses the services of the Lender.
5.7. When applying the measures for the prevention of money laundering and
terrorist financing and sanctioning measures, the Lender shall use risk-based methods and select the appropriate and necessary degree of measures based on the nature of the transactions, as well as the assessment of the amount of risk that the Client or any other person related to the transaction may be engaged in or may initiate money laundering, terrorist financing or to violate the established sanction.
6 ASSESSMENT OF CREDITWORTHINESS AND FINANCIAL CAPACITY
6.1. The Lender assesses the creditworthiness of the Client, on the basis of available information, including that received from the Client, and at its own discretion, if necessary, after making inquiries to external databases relevant to the creditworthiness assessment, relevant to the assessment of creditworthiness, financial capabilities.
6.2. The Client is obliged to provide the Lender with copies of the documents necessary for the valuation, which the Lender deems necessary, for example:
6.2.1. Certificate of employment, and/or
6.2.2. A copy of a bank statement, and/or
6.2.3. Document for receiving a pension, in case of a pensioner, etc.
6.3. Within the framework of the Valuation, the Lender, at its discretion, may, through its employees, conduct a conversation with the Client in order to request and receive additional data or additional documents. All such conversations are recorded and stored in accordance with the rules of the Privacy Policy and will be part of the Client’s file stored with the Lender.
6.4. For the purposes of approval of the Loan, in accordance with this procedure, the Client declares that on the day of the request:
6.4.1. no obligations as guarantor, as well as outstanding liabilities to the state, financial institutions, current or previous employers, other natural or legal person or liabilities that mature before the granting of the Loan for which it is applying, except for those notified by the Lender in the process of concluding the Agreement;
6.4.2. There is no claim for payment filed against him through a notary and no lawsuits have been filed against him and they do not know objectively valid reasons that may lead to this.
6.4.3. is not bankrupt, does not participate in agreements, the implementation of which would be contrary to the fulfillment of obligations under the Contract;
6.4.4. all data provided in the Application are complete and accurate.
6.5. If during the submission of the Application the Client provides false data, depending on the moment of establishing this fact, the Lender reserves the right to refuse to conclude the Agreement and/or provide the Loan, or to terminate the Agreement (if any) and all contractual relations with the Client, without prior notice and to request early repayment of the Loan, together with any fees, expenses and interest accrued or such as will be accrued until the date of termination of the Agreement. The Loan is declared prematurely due by a unilateral statement of the Lender, which can be sent to the phone number (via SMS) specified by the Client in the Application, in person, at the declared address or by e-mail.
6.6. In case the Lender approves the Application, the Client will be notified thereof by e-mail and/or phone number (via SMS or call), at the office of the Credit Intermediary or in MyIute.
6.7. The Lender has the right to offer the Client conditions for concluding a contract other than those stated, including a shorter term for repayment of the Loan or a smaller amount of the Loan. If the Client agrees to the offer by signing the Agreement, the Lender does not require the Client to submit a new Application.
6.8. The deadline for approval of the Application is 72 (seventy-two) hours from its submission. If the Application is not approved within this period, it will be considered not approved.
6.9. The Creditor reserves the right to reject the Application without a specific explanation, unless the refusal is based on the data received from the CCR or the National Social Security Institute by sending a written notification to the Client by e-mail, by SMS to the specified phone number, in MyIute or by tacit refusal. Tacit refusal of the Application will be considered the cases in which the Lender does not send the Client a notification of approval of the Loan within the time limits provided for consideration of the Application.
7. CONCLUSION OF A CONTRACT
7.1. Each contract is considered concluded and enters into force from the moment the Client signs it on paper or electronically.
7.2. Each Agreement andApplications can be physically signed at the offices of a Credit Intermediary. Electronic signing can be done in MyIute or another online environment. The Parties agree and confirm that all statements related to the Application, conclusion, performance and termination of the Agreement, signed with a simple or advanced electronic signature, will be equivalent to a handwritten
signature.
7.3. When a Contract or application is signed electronically in MyIute, the Client confirms and agrees to the relevant document through a secure electronic signing process using his/her mobile device. By selecting the “Signature” function, the Client is verified using a secure authentication method configured on the Client’s device, which may include biometric authentication (such as fingerprint or face recognition) and/or a password for the device or a password preset by the Client. Such authentication is used solely
to verify the Client’s identity in the secure environment of the Client’s device. The electronic signing process is carried out in accordance with the applicable requirements for electronic signatures and strong authentication of the Client. No biometric data is transmitted or stored to the Lender, and it is not possible to extract or reconstruct biometric information from the electronic signature. Upon successful authentication, the Treaty or application shall be deemed duly signed and binding on the Parties.
7.4. For electronic signing outside the MyIute environment, the Lender will send a unique link to the Client’s e-mail and when opening the link, an OTP will be sent to the phone number declared by the Client, which the Client must enter within 3 minutes on the subpage shown to him. If the entered OTP code matches the code sent by the Lender, the Agreement or the Application is signed.
7.5. Any amount approved and granted by the Lender to the Client is considered a Credit approved by the Lender in accordance with the terms of the Agreement.
8. REPAYMENT OF THE LOAN
8.1. The Lender repays all or part of the loan to the Client in accordance with the Agreement and/or on the basis of additional instructions to the Client.
8.2. The credit can be granted by transfer to the Client’s Payment Account,
8.3. Where the Single Loan Agreement is concluded for the purpose of purchasing goods and/or services, the Credit shall be credited to the Client’s Payment Account and, based on the instructions and consent of the Client given at the conclusion of the Credit Agreement, shall be used immediately to make a payment from the Client’s Payment Account:
(a) to the Payment Account of the Credit Intermediary and/or the Merchant; or
(b) where applicable, to UtePay acting as a payment service provider or a person authorized to receive and collect funds on behalf of the Merchant.
8.4. When the Loan Agreement is concluded for the purpose of repayment of an existing monetary obligation of the Client (refinancing), the repayment of the Loan shall be made as follows:
(a) External refinancing. When the Loan is concluded for the refinancing of the Client’s obligation to a third financial institution (external creditor), the Lender pays the approved amount directly to the designated bank account of the respective external creditor (or other person entitled to receive payment on its behalf) in the form ofthe amount and term of the agreement. Making such payment constitutes the fulfillment of the Creditor’s obligation to grant the Credit to the Client and the Client expresses his/her consent for the
Lender to make the payment in the manner described above; or (b) internal refinancing. Where the Credit is concluded for the refinancing of a Client’s
obligation to the Lender, the Credit shall be credited to the Client’s Payment Account and, based on the instructions and consent of the Client given at the conclusion of the Loan Agreement, the amount corresponding to the refinanced obligation shall be used immediately to make a payment from the Client’s Payment Account to the Lender (or, where applicable, to UtePay acting as a payment service provider or collection agent authorized to receive and collect funds on behalf of the Lender). If
the amount of the Credit exceeds the amount required to refinance the respective obligation(s), the remaining amount shall be credited to the Client’s Payment Account and shall remain available in it.
8.5. If the Client has provided the Lender with false material information or the circumstances that are the basis for granting the Loan have changed (incl. the financial condition of the Client has deteriorated in the event of encumbrances on the subject of collateral, which were not known to the Lender), the Lender has the right to refuse to grant the Loan or part of it on the basis of the Agreement.
9. INTEREST, COMMISSIONS AND APR
9.1. The creditor is entitled to interest and other fees as agreed in the Contract.
9.2. The Client shall pay interest and other contractual fees within the terms and conditions agreed in the Agreement and in accordance with the Repayment Schedule. The lender starts calculating the interest from the date of signing the Consumer Loan Agreement.
9.3. The interest is calculated monthly using the simple interest method on the residual amount of the Loan.
9.4. The total cost of the Loan represents all costs, including interest, fees, contractual considerations and all other types of payments that the Client is obliged to pay in connection with the Consumer Credit Agreement and about which the Lender knows or should know, including fees for additional services related to the Loan. Notary fees or state fees are not included in the APR. The initial APR includes the total costs of the Client’s Loan, current or future, (including interest, other
direct or indirect costs, contractual considerations or payments of any kind) arising from the granting of the Loan, and is an annual percentage rate of the Loan cost (APR). The interest rate for a day is calculated as 1/360th of the annual interest rate. In case the Client is in arrears on payments, the Client owes the Lender, in addition to the agreed interest, compensation for delay in the amount of the statutory interest on the entire overdue amount for the entire period – from the maturity date to the date of full payment of the amount. The calculation of the initial APR is made on the basis of the terms of the Agreement, which are in force at the time of conclusion of the Consumer Credit Agreement or its amendment (including the interest rate in force at that time). When
calculating the total amount of the Loan and the initial APR, it is considered that the Loan has been granted immediately and in full to the Client, and the Agreement remains in force until the final repayment date, agreed in the Credit Agreement, and the parties will duly fulfill their obligations arising from the Agreement. The annual percentage rate of the Loan is specified in the Loan Agreement and is calculated in accordance with the requirements of the Consumer Credit Act, taking into account the following assumptions:
• The Loan Agreement will be valid for the period specified therein, for which it was concluded;
• Each of the parties will fulfill its obligations accurately and on time in accordance with the terms of the Consumer Credit Agreement and this Framework Agreement;
• No costs will be charged for the collection of the loan, interest for delay and/or penalties due to non-fulfillment of obligations by the Client. The total price of the Credit changes in case of deviation from the above assumptions.
9.5. The loan agreement shall be concluded in EUR (EUR). All loan balances as of 01.01.2026, agreed in BGN, will be automatically recalculated in EUR at the fixed exchange rate, without additional fees and without changing other contractual terms. This automatic currency conversion does not constitute an amendment to the Loan Agreement and does not lead to an increase in the financial obligation for the Client.
10. REPAYMENT SCHEDULE
10.1. During the validity of the Agreement, the Creditor shall provide the Client with the Repayment Schedule free of charge.
10.2. The repayment schedule contains data on the installments due on the Loan and their maturity and the conditions related to the payment of these amounts, an overview of each payment with data on the principal, the interest calculated on the basis of the interest rate, fees and additional costs.
10.3. The Client may familiarize himself with the Repayment Plan in the Client Profile, in addition, at the request of the Client, the Lender provides the Repayment Plan to the Client by mail or electronically to his e-mail.
11. LOAN REPAYMENT AND EARLY REPAYMENT
11.1. The Client undertakes to repay the Loan under the conditions provided for in the Agreement, in accordance with the amounts specified in the Repayment Schedule of each Loan Agreement.
11.2. The Client undertakes to provide to UtePay, in which case he has a Payment Account, with the prior and explicit consent within the meaning of Art. 2, para. 2 of Ordinance No. 3 of the BNB and Art. 85 of the Payment Services and Payment Systems Act, the execution of direct debit operations for the purpose of repayment of all obligations of the Client under consumer credit agreements concluded between the Client and the Lender (Direct Debit Consent).
11.3. Upon concluding a Credit Agreement, the Client confirms that the direct debit consent previously signed at the opening of the Payment Account remains valid and valid, and expressly authorizes IutePay to collect the loan repayments and all related amounts due under this agreement by direct debit from the payment account specified in the direct debit agreement.
11.4. The Client confirms that the execution of direct debits in accordance with the direct debit consent is an essential condition for granting and maintaining the Credit and that the Credit Agreement is subject to the existence of a valid direct debit consent.
11.5. The direct debit consent is applicable to all amounts due by the Client under consumer credit agreements, including principal, contractual interest, default interest and any other payments due by the Client.under the individual consumer credit agreements, the Framework Agreement and the Tariff of fees and commissions of the Lender. The Client authorizes the Lender to initiate requests for the execution of payment transactions via direct debit and to collect the corresponding amounts as described above.
11.6. The Client undertakes to maintain sufficient funds in his Payment Account in UtePay to ensure the successful execution of payments by direct debit. In case of insufficient funds or unsuccessful payment due to technical reasons, the Client remains obliged to pay the amounts due within the agreed terms under any of the alternative methods separately agreed between the Parties. The Client has the right to withdraw his/her consent to execute any direct debit transaction(s) no later than the end of the business day preceding the agreed date on which the account will be
debited by submitting a notification via the contact options available on the https://iute.bg/kontakti/ website, in accordance with the established procedure. After the expiration of this period, the payment transaction may be canceled only by agreement between the Lender and UtePay, with the explicit consent of both parties. The Client expressly acknowledges and agrees that maintaining the direct debit consent is an essential condition for the conclusion and continuation of the Agreement. Accordingly, if the Client withdraws his/her consent to direct debit payments or otherwise deactivates the execution of
direct debit transactions, the Lender has the right to terminate the Credit Agreement in accordance with the terms and conditions set forth herein and in the Credit Agreement. The Client further agrees that in case of cancellation or termination of the direct debit agreement, UtePay has the right to inform the Lender of such cancellation or termination for the purpose of administering and performing the Credit Agreement.
11.7. All payments made by direct debit are considered valid and made from the moment of successful debit of the Client’s payment account. In the event of an unauthorized or unlawful transaction, the rules of the Payment Services and Payment Systems Act regarding the recovery of unauthorized transactions apply.
11.8. All conditions, terms and technical requirements regarding the execution of payment transactions by direct debit are regulated by UtePay in its capacity as a payment service provider, in accordance with the applicable provisions of the Payment Services and Payment Systems Act and the by-laws of the Bulgarian National Bank.
11.9. The Client pays separately and at his own expense all expenses that he/she may incur in connection with the execution of each Credit Agreement.
11.10. In case the Client has more than one outstanding loan to the Creditor and has not given specific instructions for the repayment of its obligations, the distribution of the funds received by the Client will be made between the amounts first due and the second maturing, in the following order:
1) court and out-of-court costs for debt collection, costs for reminder letters, sending messages;
2) fees;
3) accrued penalty interest or penalties for delay;
4) contractual interest;
5) principal on the Loan.
11.12. In case the Client pays an amount that is not sufficient to repay all obligations, the costs shall be repaid first, withrelated to the non-fulfillment and untimely fulfillment of the Client’s obligations, as specified in clause 11.10.
11.13. The Client has the right to repay all or part of the Loan ahead of schedule by submitting a written application for early repayment to the Lender. The client must settle all his outstanding debts in case of such repayment. In case of partial early repayment, the Client must sign the new Repayment Schedule, which enters into force once the repayment has been processed in accordance with the requirements set by the Lender.
11.14. In case of early repayment of the Loan, the Client is obliged to pay the unpaid principal of the Loan and the accrued interest and fees until the day of early repayment.
11.15. In the event that the Client makes payments to the Lender in excess of the amounts due (overpayment) and does not notify the Lender in writing of its intention to repay the Loan in whole or in part, this will not be considered early repayment and will be treated as an overpayment, which will be processed as follows:
(a) If the Client has a Payment Account with UtePay, the Lender shall transfer the overpaid amount to the Client’s Payment Account.
(b) If the Client does not have a Payment Account with IutePay, the overpaid amount is reported as a positive balance on the Client’s account. This positive balance shall be applied either to the next payment(s) due to the Client under the Loan Agreement(s) or, at the express request of the Client, it shall be transferred to an account held with a financial institution designated by the Client. The Creditor reserves the right to settle these amounts with any claims that the Creditor may have against the Client arising from the Loan Agreement(s) or approved claims of the Client, when such claims are due and due.
11.16. Early repayment of the Loan may also be made by approving a new Loan for the Client by the Lender (“Refinancing Loan”). The refinancing loan can only be approved in case of full (and not partial) repayment of the existing obligations of the Client. The lender is not obliged to approve the Loan for refinancing purposes.
12. RIGHT OF WITHDRAWAL
12.1. The Client has the right, without paying compensation or penalty and without giving a reason, to withdraw from the Agreement within 14 days from the date of utilization of the amount under the Consumer Credit Agreement.
12.2. The right to withdraw from the Agreement shall be deemed to have been exercised if the Client sends a written notice to the Lender before the expiry of the deadline. If the Client makes a full repayment of the Loan Agreement within the 14-day withdrawal period and does not notify the Lender of its intention to withdraw from the Agreement, the repayment will be considered as a prepayment under clause 11.13.
12.3. In case the Client exercises his/her right to withdraw from the Agreement, he/she shall be obliged to return to the Lender the principal and pay the accrued interest for the period from the date of signing the Agreement to the date of repayment of the principal and accrued interest, without undue delay and no later than 30 calendar days from the sending of the notification to the Lender for exercising the right of withdrawal. The interest rate is calculated on a daily basis, according to the interest rate agreed in the Consumer Loan Agreement.
12.4. In case the Client has sent a timely notification for exercising his right of withdrawal to the Creditor, but within 30 days has not paid the amounts due to the Creditor, the Agreement continues to be valid under the conditions under which it was concluded, including the application of the Repayment Schedule with all the consequences of possible delay of the Client.
13. SUSPENSION OF MONTHLY INSTALLMENT
13.1. The Client has the right to request the suspension of the respective monthly installment, in which case the Client is obliged to pay the Suspension Fee. The suspension fee is not subject to refund, the amount of which is specified in the Tariff paid by the Client for:
• consent to the delay in the payment of the monthly installment;
• suspension of the calculation of penalties;
• suspension of debt collection activities that would increase the total debt of the Client;
13.2. The Client confirms that in case of even partial non-payment of the amounts due, including the Suspension Tax, within the agreed period, the Lender has the right to calculate the interest for delay retroactively as of the maturity date of the monthly installment. For clarity, the Suspension Fee will not be refunded or converted as payment of the monthly installment, interest or other fees due by the Client.
14. CONSEQUENCES OF LATE PAYMENT
14.1. If the Client fails to fulfill its obligations under the Agreement in full and on time, the Lender has the following rights:
14.1.1. charge default interest on the overdue amount from the maturity date until the payment of the amount due. The default interest is in the amount of the statutory default interest. The amount of the statutory interest shall be determined by a decree of the Council of Ministers of the Republic of Bulgaria.
14.1.2. to take all necessary actions in accordance with the applicable legislation, including to terminate the Agreement and all other contracts concluded between the parties after the expiration of the notice period ahead of schedule, and to perform all necessary actions to collect its claims before all competent authorities and institutions, including, but not limited to, courts, notaries, bailiffs and
others.
14.1.3. All other rights duly described in the Framework Agreement concluded between the Lender and the Client.
15. TERMINATION OF THE CONTRACT
15.1. The Creditor has the right to terminate all Contracts and require the Client to repay the outstanding Credit/Credits, accrued Interest, penalties and other receivables arising from the Contracts within 3 (three) business days from the receipt of the relevant notification by the Creditor, if:
15.1.1. According to the application of the Measures Against Money Laundering Act, it has been established that the Client has provided the Lender with false material information in the Loan Application or in other documents submitted to the Lender;
15.1.2. The Client fails to properly fulfill its payment obligations arising from the Contract(s);
15.1.3. The Client fails to properly perform any or all of the obligations arising from the Contract(s);
15.1.4. events occur that threaten the proper performance of the Agreement by the Client;
15.2. In case of termination of the Agreement, the Credit and the accrued Interest until the date of actual repayment shall become immediately due. The final amount to be paid by the Client due to termination by the Lender of the Agreement will be indicated by the Lender in the notice of termination.
15.3. All termination clauses of the Agreement and the consequences of late payment are duly described in the Framework Agreement signed between the Lender and the Client.
16. COMPLAINTS PROCEDURE
16.1. The Client may submit a complaint by letter to the address of the Lender indicated above.
16.2. All complaints will be answered as soon as possible, and the Creditor will make every effort to respond within 30 days.
17. TRANSFER OF PERSONAL DATA
17.1. The client is informed that his/her personal data may be transferred to a debt collection company, as well as processed for the purposes of Creditworthiness and Financial Capabilities Assessment.
17.2. The Creditor processes the Client’s personal data and may transfer it to other EU or EEA Member States, or to other non-EU or EEA countries, with prior approval by the Commission for Personal Data Protection agreeing to the Personal Data Privacy Policy.
18. FORCE MAJEURE
18.1. Neither party shall be liable to the other for delay or omission in the performance of obligations due to force majeure (as defined below).
18.2. “Force majeure” means any event that cannot be prevented or foreseen, occurring after the signing of the Agreement between the Creditor and the Client and which leads to the impossibility of fulfilling the obligations assumed by the Creditor under the Agreement, including, but not limited to: legal, administrative or governmental restrictions, natural disasters, epidemics, riots, uprisings, conflicts or riots, war,
terrorist attacks, earthquakes or other destructive actions of natural forces, general strikes, embargoes.
18.3. In case of force majeure, the Lender shall take all reasonable actions and measures to limit the losses and damages and shall notify the Client within one week from the date of completion of the force majeure circumstances.
18.4. The lack of funds will not be considered force majeure, both in relation to the Lender and in relation to the Client.
19. FINAL PROVISIONS
19.1. All notifications between the Parties in relation to the Treaty shall be made in accordance with it.
19.2. If any provision or part of the provisions of the Procedure is declared invalid, the remaining provisions shall remain in force and the invalid provisions shall be replaced by applicable provisions that meet the original intentions of the parties to the greatest extent possible.
19.3. By signing the Agreement, the Client confirms that he has read and understood this Procedure and fully agrees with it.
This Procedure has been adopted in accordance with an order of the Manager of UteCredit Bulgaria
EOOD dated 23.12.2025.