Gov’t promises new framework to increase protection for borrowers vis-a-vis loan servicers

Greek Finance Minister Kostis Hatzidakis on Wednesday pledged that the government will soon table legislation to offer greater protection of borrowers from so-called loan servicing companies.

He made the statement after a meeting between ministry officials and representatives of the Hellenic Loan Servicers Association.

Among others, the ministry said a coming initiative aims to oblige loan servicers to provide individualized information to borrowers on their full debt, unpaid instalments, current interest rates and other related data. Fines will be imposed for failure to provide clear and timely information to borrowers with overdue debts.

On their part, representatives of the association cited a 30-percent improvement in the management of outstanding loans over the first months of 2023, compared to 2022.

The association pointed to an increase in revised payment plans agreed to by creditors and borrowers, and achieved by out-of-court arbitration. Specifically, between January and June 2023, 6,254 such out-of-court settlements reached, corresponding to 2.33 billion euros of initial debt.