Our law firm successfully concluded a complex court dispute against a bank concerning an unauthorized payment transaction, with our client’s claim against one of the leading banks in Bulgaria being definitively upheld by all court instances. The dispute dates back to the autumn of 2021.

The case arose in connection with the unauthorized use of a payment instrument without the cardholder’s consent. Following the timely notification of the bank regarding the unauthorized use, a dispute emerged concerning the liability of the payment service provider and its obligation to reimburse the amount.

At an early stage, we issued a legal opinion confirming that the claim was well-founded, based on the provisions of the Payment Services and Payment Systems Act and the applicable European regulatory framework governing liability for unauthorized payment transactions.

During the out-of-court phase, the dispute was reviewed by the Conciliation Commission for Payment Disputes at the Consumer Protection Commission, which confirmed our position and concluded that the bank was obliged to reimburse the amount.

Following the bank’s refusal to settle the claim voluntarily, we undertook a series of procedural steps, including the issuance of a formal demand, initiation of court proceedings, and representation of the client before all judicial instances. The courts fully endorsed our legal arguments and confirmed the bank’s liability.

In its reasoning (Decision No. 883 of 11 February 2026 of the Sofia City Court), the court held that where a client has duly notified the payment service provider, the latter bears liability for unauthorized transactions if it has failed to take the necessary measures to mitigate risk and prevent misuse, and where it has not demonstrated proper compliance with its statutory obligations.

Despite the final court ruling, the bank has continued to refuse voluntary compliance, which has necessitated the initiation of enforcement proceedings to recover the awarded amounts.

We have a substantial experience in representing clients in disputes involving unauthorized payment transactions and the liability of payment service providers, providing comprehensive legal support at every.

Should you require assistance in similar or other legal matters, please do not hesitate to contact us.