Clients – Debtors
Servicer - Debtor relationship
The relationship of the servicer with the is extremely important as it acts as the catalyst for the solving of a large financial problem that affects many households and businesses, the entire financial system and the economy of the country – that of NPLs. It is in everyone’s interest that sustainable solutions emerge through smooth negotiations between servicers and debtors
The transfer of the management of a loan to any servicer company does not deprive the client of any rights held in relation to the original beneficiary of the claim (e.g. in relation to the bank that granted the loan or in relation to the supplier that had signed the original contract with the client). Just like the original beneficiary of the claim, servicers apply in the exact same way:
- the current institutional framework on consumer protection (Law 2251/1994)
- the Banking Code of Conduct drawn up by the Bank of Greece for the servicing of non-performing loans
- the relevant decisions of the Bank of Greece governing the operation of servicer companies
Also, according to the relevant legislation (Law 4354/2015), the transfer or assignment of the management of the claim does not worsen the position of the debtor or the guarantor, while, the servicer company is not allowed to unilaterally amend any terms of the contract or the interest rate.
Frequently Asked Questions of a Debtor
Listed below are answers to frequently asked questions that Association members receive from debtor customers:
What does the transfer of loans from banks to servicers mean for debtors? To what extent is a new opportunity being given to debtors, individuals and businesses to resolve long-term impasses related to their finances?
What are the intentions of servicers regarding auctions?
Why do servicer companies focus on strategic defaulters?
Are servicers only active in Greece or do they also exist in other countries?
Why is a debtor not worse off when a loan is transferred from a bank to a servicer company?
Can debtors have personalized solutions with the transfer of their loan?
- have accumulated know-how and experience,
- employ specialized staff,
- have developed technological infrastructures that demand time and significant capital investment.
What resources do specialized servicers have compared to banks? What can’t banks do that servicers can?
- have accumulated know-how and experience,
- employ specialized staff,
- have developed technological infrastructure that demands time and significant capital investment. a. The improved effectiveness of servicers compared to banks is due to their greater flexibility in providing solutions that help debtors handle their obligations which are adapted to each debtor's conditions. These solutions cannot be implemented within the strict banking framework, due to the supervisory rules that govern the capital adequacy of banks (e.g. the well-known EBA rules of the European Banking Authority). Servicer companies are not subject to the corresponding capital restrictions and for this very reason they are able to offer flexible and decisive loan restructuring agreements to debtors.
Legislation
The basic legislative framework that governs servicer companies is listed below:
National Regulatory Framework for Overdue Debt Servicing | |
Servicing of non-performing loans, wage adjustments and other urgent provisions for the implementation of the agreement on fiscal objectives and structural reforms | |
ECA 118/19.5.2017 | Framework for the establishment and operation of loan and credit receivables servicer companies |
CICD 195/1/29.7.2016 | Revised Code of Ethics |
Complaints
If you are a debtor and have a complaint or problem related to your loan, you can contact one of the following e-mail addresses – the one that corresponds to the servicing company you deal with.