According to the Code of Conduct as applicable (Law 4224/2013 as in force), credit institutions should put in place a detailed and documented Arrears Resolution Procedure (hereinafter ARP), with relevant categorization of loans and borrowers such as enables strict compliance with this Code of Conduct, which should include a detailed and documented Appeals Review Procedure (hereinafter ApRP). The ARP includes the following stages:
Step 1: Communication with the borrower
- Communication by letter: Letters are sent to the borrower and any other party involved in the contracts in arrears, in order to inform them about their outstanding debts and request them to provide the necessary documentation within a specific time period (1st notification). If the borrower does not respond, a second letter is send informing the borrower of the possibility of being classified as “non-cooperating” and the next steps to be taken by the Bank. Both letters mention the maximum time limit for borrowers to respond, as specified in the definition of “cooperating borrower” (15 working days).
- Communication by phone: This is carried out in line with the applicable legal framework. The frequency of communication is determined by Law 3758/2009, as in force, and aims at notifying the borrower about any outstanding debts, providing clarifications on the procedures of the Code, reminding the borrower of the dates defined in the Code for the borrower’s response and the importance of a timely settlement of any outstanding debts. Communication shall take place at all ARP stages and has been standardized to the greatest extent possible, with a view to including clear, sufficient, correct and intelligible content.
-Communication by email: Communication under the ARP may also be sent by email to the last email address stated by the borrower to the Bank.
Step 2: Collection of financial and other information from the borrower
Borrowers should visit the nearest Dedicated Contact Point to submit the required documentation, along with the completed "Standardized Financial Statement" (SFS). In case you have difficulties in completing the SFS, you can visit one of the Dedicated Contact Points or call us at 210 4859199 (Monday- Friday, 09:00-20:00).
For the required documentation click here.
If it is deemed necessary to provide further supporting information or documentation for the assessment of the borrower’s financial status, the Bank will either contact the borrower by phone or send a letter or email to the borrower’s address, informing the borrower about the additional information or documentation required to verify the information submitted, setting a deadline of approx. 15 working days, always taking into account the time needed to issue or obtain such documentation.
Step 3: Assessment of financial data
The assessment is performed on the basis of the data submitted, taking into account any information from other sources, including the RLE.
If the borrower is a natural person without any business debts, the following are taken into consideration:
- financial status of the borrower and any parties involved in each agreement;
- total amount and nature of the debts, including any debts towards other institutions;
- the borrower’s financial behaviour record;
- estimated future repayment capacity;
- future ability to repay debts until the end of the settlement period
- reasonable living expenses; and
- the value of any collateral (or any other asset(s) of the borrower which could be used as additional collateral).
If the borrower is a professional or sole proprietor, the following are also taken into consideration*:
- submitted business or restructuring plan of the company;
- the actual material participation of the business owner in funding the business plan;
- growth prospects for the specific business sector;
- any estimated future cash flows supporting the assumption that the debt is possible to be repaid;
- risk factors of the business plan, any impact on the repayment capacity and any measures taken to mitigate such risks or their impact.
* The above factors are considered also for the assessment of borrowers who are legal entities-micro enterprises.
Step 4: Proposal of an appropriate solution
Following assessment of the financial and other information, forbearance or resolution and closure solutions are proposed, or a combination thereof. More specifically:
- Short-term Forbearance Solutions: Such solutions are selected when the repayment difficulties are considered, on the basis of evidence to be of a temporary nature.
- Long-term Forbearance Solutions: They are selected to reduce the interest-bearing instalment, in combination with increasing the number of instalments and extending the repayment period, taking into account the estimated future repayment capacity of the borrower up to the maturity of the program.
In the event that no agreement is reached, resolution and closure solutions are proposed. Specifically:
- Resolution and closure solutions: A resolution and closure solution means any change in the contractual relationship status between the Bank and the borrower or its termination, aiming at the final settlement of the Bank's claim against the borrower, potentially combined with delivery (voluntary or mandatory) of the collateral to the Bank to reduce the total claim or even liquidation of the collateral for settlement of the claim. In this case, any outstanding balance is still borne by the borrower and is charged with the default interest rate each time applicable, as provided for in the agreement.
Within 15 working days as of receiving the Standardized Document for Proposing Forbearance or Resolution and Closure Solutions, which will be sent either by registered mail or email, the borrower must visit the nearest Dedicated Contact Point to:
- accept in writing the proposed solution(s); or
- put forward a written counter-proposal; or
- refuse in writing to consent to any proposal.
If the borrower does not follow any of the above steps within the said time period, the borrower will be classified as “non-cooperating”.
Step 5: Appeals Review Process (ApRP)
If the borrower is classified as “non-cooperating”, the borrower has the right to appeal in writing the procedure of the Code that led to the said classification, within 15 working days, documenting the grounds of such appeal.
The ApRP is not applicable to any objections to the policies and methods applied by the Bank under the Code, as announced, or to the content of the proposed solution.
You have the right to appeal only once. The procedure involves the following:
- You obtain the Standardised Appeal Form from any Dedicated Contact Point. Alternatively, you can download and print it here.
- You complete it and file it with the Dedicated Contact Point, within 15 working days of being classified as a “non-cooperating borrower”.
- The Appeals Committee has the right to take a decision within 2 months of receiving the appeal, which will be sent to you by registered mail. In addition, further documentation may be requested, as needed for the review.
Any dispute will be resolved out of court through the Hellenic Consumer Ombudsman or other mediation service providers or the competent courts. The Bank reserves the right to initiate legal/court actions.
All stages under the ARP are subject to the contractual terms and conditions signed.
For more information please read the Information Booklet for borrowers facing financial difficulties.
Last, note that borrowers included in socially vulnerable groups should provide the Bank appropriate evidence of their status to enable considering the option to adopt alternative ways of communication with the Bank.