Stricter rules for servicers
The Ministry of National Economy and Finance is planning a stricter framework of rules on the information obligations that bad-debt management companies must adhere to in communicating with debtors, as well as improvements to the basic terms of out-of-court settlements, so that there is more debt cancellation for more debtors.
The matter was discussed at the meeting held on Wednesday by Minister Kostis Hatzidakis with representatives of bad-loan management companies, during which the servicers’ officials informed him about the course of debt arrangements to date. Based on the data provided for January-June, debts amounting to 3.4 billion euros were settled, up 35% from the same period last year.
The ministry will introduce a new framework of rules and obligations of information and transparency for servicers, so that they provide personalized information to debtors on issues such as total debt, installments due, interest etc.
The obligations in the new informing and transparency rules will be accompanied by penalties when servicers do not offer clear and timely information to debtors.
