ECONOMY

Code on how to settle default debts

code-on-how-to-settle-default-debts

The Bank of Greece has developed a new code of conduct binding banks and debt collection agencies in their communication with debtors.

The new code is coupled with the joint development of a special online debt management platform by the General Secretariat of Information Systems and the Special Secretariat of Private Debt Management. 

The Bank of Greece will monitor the platform to determine whether banks and debt collection agencies are following the code of conduct and whether debtors are cooperative or not.

The new code is adapted to the “second chance” legislation on default loans. It prescribes the sort of communication between banks, collection agencies and debtors and the offer of tailor-made solutions.

The code does not apply to old defaults, before 2017, and very small loans (under €1,000 for individuals and €5,000 for firms).