You care: Cancellation of loans and debts – who are entitled to a discount of up to 80%

religionGood news for thousands of Greeks as debt cancellation, state debt “reduction” and many other favorable measures are being promoted! All developments in xristika.gr …

This mechanism, through an automated algorithm-based process, produces debt settlements for those borrowers who meet income, property and debt requirements.

And the algorithm of the new mechanism produced, according to the “Kathimerini” newspaper, as many as the first 36 offers for debt settlement, after conducting the required checks, and the private institutional creditors voted affirmatively on 24 of them.

In the remaining 12 applications, the reason for refusal was that the debtors’ guarantors did not provide access to verify their financial statements (eg income, from deposits, investment products, real estate, etc.).

According to the Ministry of Finance, among others, the following cases of highly indebted households have been settled:

1. A family of three from Attica with a total debt of more than 170,000 euros to 5 banks (35% housing and 65% consumer loans) and overdue debts of more than 13,000 (240 euros to e-EFKA, has applied for modification and is produced by proposal Automated debt settlement as follows:

a) For debts to financial institutions: Cancellation of more than €27,000 (i.e. a 16% debt “reduction”) and repayment of the balance over 35 years (420 instalments), with a monthly installment of €46.

b) For debts to EFKA: repayment over 20 years 13,000 (240 installments), with a monthly installment of 90 euros.

2. For a single-person household from Attica with a total debt of more than €43,000 (from consumer loans to three banks and overdue debts of more than €3,000 to EFKA, the regulation provides:

a) For debts to financial institutions: cancel more than €34,000 (i.e. ‘reduce’ the debt by 80%) and pay off the balance over 10 years (120 instalments), with a monthly installment of €75.

b) For debts owed by EFKA: Cancellation of more than €125 (i.e. ‘reduction’ of debt by 4%) and repayment of the balance over 7 years (84 instalments), with a monthly installment of €50.

In total, the debtor will pay 125 euros per month, while he has the option to pay 130 euros per month, according to the data announced.

3. A single family from Chios with a total debt of more than 12,000 euros to two banks of consumer loans submitted a settlement request, and the mechanism resulted in a settlement proposal, with repayment over 3 years and a monthly installment of 375 euros.

The debtor had stated that he was able to pay 380 euros per month, according to the announced data, according to the “Kathimerini” newspaper.

4. A family of four from Crete submitted a total debt of over €43,300 to a financial institution (90% housing and 10% consumer loans) and overdue debts of over €3,600 to AADE and over €43,000 to EFKA, Amendment Application Submitted and Proposed Debt settlement by automated algorithm as follows:

a) For debts to banks: repayment over 9 years (108 installments), with a monthly installment of 490 euros.

b) For debts to AADE: repayment is made in 8 years (96 installments), with a monthly installment of 50 euros.

c) For debts to e-EFKA: repayment over 9 years (108 installments), with a monthly installment of 525 €.

In total, he will pay 1,065 euros per month, while he has the option to pay 1,070 euros, according to the data announced.

5. A family of four dramas with a total debt of over €170,000 in housing loans and overdue debts in excess of €13,000 to AADE, they are required to pay as follows:

a) For debts to financial institutions: write off more than €33,000 (i.e. “reduce” the debt by 20%) and repay over 35 years (420 instalments), with a monthly installment of €580.

b) For debts owed to AADE: Repayment is made over 35 years with (420 installments), with a monthly installment of 67 euros.

Debt: Your rights if you are called to collect

The vast majority of the loans Greeks took out from banks are now transferred to foreign companies, which manage them with claims management companies. What can we do; See in detail at xristika.gr …

There are many questions from citizens who took loans from banks that have now been transferred to foreign companies, who manage them with claims management companies located in Greece and communicate with borrowers.

Borrowers are surprised when they realize they have changed loan providers and, as is easily understood, questions arise as to what they should do next.

Attorney Anna Corsano provided answers to important questions of select borrowers to ERT, which you can find below.

Receivables management company directory

Specifically, according to Ms. Corsano, the following applies:

I have a loan from a bank and I got a call from a company I don’t know. Is this legal?

This is legal, Ms. Corsano explained, although the borrower did not know the company, as he had sent some documents to report the transfer of the loan. It is noted that when signing the loan there was a condition giving the right to transfer the loan. Regarding the transfer of personal data, because this was not clear in the original contract, now in the new arrangements signed by the borrower with the management companies there is a special reference of two to three pages.

What are these companies?

Same with funds. The fund is the new owner of the loan, the foreign company. Claims management companies are partners of foreign companies in Greece that have the responsibility of communicating with the borrower, making proposals and arrangements, signing them, doing courts, and submitting payment orders.

Shouldn’t he be asking me when my loan was transferred? I didn’t want to transfer it

The loan can certainly be transferred according to the signing of the first contract. Regarding the controversial issue of personal data, there have been courts that have acquitted borrowers

Why didn’t they ask me to pay a small amount and close the loan because they sold it so cheap?

Since 2017 and 2018, when the first transfers began, there have been aggressive adjustments and loan write-offs that have given many borrowers the opportunity to “untangle” on favorable terms. Others did not understand it or could not benefit from it. Ms. Corsano explained that the bank does not examine the loan on a case-by-case basis, but treats them all as “bundles” of loans, i.e. pools of millions of euros that it has set aside for its financing.

Do these companies operate unregulated? If I have a complaint, who can I turn to?

Ms. Corsano acknowledged that it is difficult to communicate with these companies operating in a chaotic situation, adding that it is also supervised by the Bank of Greece and if there are complaints, those interested can address them as well as the consumer lawyer. In addition, there is a special complaint form on the websites of these companies. By submitting it, they are obliged to answer within 45 days.

I am trying to find a compromise with these companies to get my loan and I can’t find a solution why? Am I under extreme pressure to sign an agreement without fully understanding what I am signing for?

In corporate practice, there is a bombardment in communicating with borrowers once they get to know them. Otherwise, however, the connection is difficult. The goal of every employee in the company is to reach a quick compromise in order to meet the target setting for his job. The borrower, for his part, should remain calm and read the terms of the new regulation so that he knows what he is signing, and perhaps negotiate some terms.

Ms. Corsano also recommended that in every contact of borrowers with employees of these companies, they should ask for their phone number and email address. He also said that these companies, in their practices, avoid communicating with borrowers’ attorneys. Borrowers should read carefully what they sign, either on their own or with the help of a lawyer, and not just settle for an installment amount that may seem “appropriate.” If the value of the loan is greater than the property or possessions of the borrower, there is reason for more favorable arrangements or even to write off part of the loan.

What alternatives do I have if I don’t like the proposed arrangement?

There is an out-of-court mechanism for the platform from the state where a comprehensive settlement is made of the debts and the immovable property is not in danger, then the bankruptcy law, where the debts are written off but the immovable property of the borrower is liquidated.