Debt Collection Agency participates in the annual congress of the European industry association FENCA

Zornitsa Bankina, CEO of Debt Collection Agency EAD (DCA), in her capacity as a member of the Board of Directors of the Association for Debt Management, attended the annual congress of FENCA. The Federation of European National Collection Associations (FENCA) represents the interests of European companies in the field of debt collection and management, coordinates relations with institutions at the European Union level, and with representatives of the financial sector. The exchange of experience at the Federation level is crucial for improving business standards, establishing best practices, and providing quality professional services.

At the annual congress in Athens, data from a FENCA survey was shared among its members, covering 75% of all companies in the sector in the European Union. Volume of assigned and purchased debt increasing steadily. Expectations for the development of the sector in Bulgaria are in line with overall European trends. It is predicted that the quality of loans will deteriorate and the level of non-performing loans (NPL) will slowly rise. Among the main reasons for these forecasts are political instability, stagnation in the IT sector, rising prices, and changing consumer behavior against the backdrop of introducing the euro as the official currency in Bulgaria.

“Regulation in the industry has intensified across Europe, after almost all countries have now transposed Directive 2021/2167 of the European Parliament and of the Council on credit servicers and credit buyers. In Bulgaria, this is reflected in the Law on Credit Servicers and Credit Buyers (LCCBL) adopted this year. The new BNB Regulation on the licensing regime and requirements for the activities of credit servicing companies has also been published. As a result of regulation, there are more restrictions in the business, which gradually leads to a reduction in the number of employees in the sector,” commented Zornitsa Bankina.

During the conference in Athens, one of the discussed topics was the entry of artificial intelligence (AI) into the debt management sector as a tool enhancing the digitization process. Its use for data analysis helps improve the efficiency of companies and allows them to operate with an increasing number and value of overdue receivables. More and more companies in the sector in Bulgaria are turning to automating repetitive processes. A positive step forward towards digitalization at the state level can be pointed out as the Unified Portal for Electronic Justice (UPEJ), active since mid-year. UPEJ directly affects the activities of debt purchasing companies in our country, optimizing procedural actions.