Close monitoring of servicers is being implemented by the economic team, activating a special mechanism to track complaints about non-performing loans, as allegations from borrowers about unfair practices, aggressive harassment, and non-transparent charges multiply.
Aimed at strengthening protection for vulnerable borrowers and ensuring transparency, the General Directorate for Private Debt Management of the Ministry of National Economy and Finance is proceeding to establish a special five-member committee, headed by a salaried lawyer. Its mission is the systematic monitoring and evaluation of complaints concerning acts or omissions by Loan and Credit Claims Management Companies (servicers).
According to the relevant decision, the committee undertakes the collection and evaluation of evidence from all involved parties, communication for gathering necessary material, and creating complete files for each case. Additionally, it provides for maintaining electronic archives in a shared NAS (Network Attached Storage) space at the General Secretariat’s central facilities, accessible to team members.
Furthermore, the Working Group:
- Will maintain a special Excel spreadsheet program, uploaded to the shared NAS storage space, through which it will monitor the progress of each complaint and the evidence transmitted to the General Directorate for Private Debt Management (GDPDM) by involved parties, with full compliance to confidentiality and personal data protection frameworks.
- Will set specific deadlines and schedules for rapid and effective handling of each case, examining complaint content and evaluating all case file documents within the framework of investigating acts or omissions by managers or third parties acting on their behalf.
- Will reach conclusions regarding the validity or invalidity of complaints and proceed with appropriate actions, such as formulating compliance proposals to managers, informing complainants, archiving cases, or submitting relevant recommendations to the General Directorate for Private Debt Management.
Servicer obligations
Following incorporation of the relevant EU Directive (2021/2167) into national law, servicers are obligated to:
- Protect borrowers’ personal data and privacy (according to legislation for protecting personal data and privacy in electronic communications).
- Communicate with borrowers in ways that do not constitute harassment, coercion, or undue influence, and respect them.
- Notify borrowers in writing, in clear and understandable language, after any credit transfer and always before the first debt collection, and whenever requested by the borrower, including the following:
-Information regarding amounts owed by the borrower at the time of notification, with detailed breakdown of amounts owed as principal, interest, commissions, and other permitted charges
-The name, address, and contact details of the credit purchaser as well as competent authorities to which the borrower can submit complaints.
-Establish transparent, immediate, and free procedures for handling borrower complaints.
-Implement internal control mechanisms that ensure: respect for borrowers’ rights, compliance with protection rules, and fair and diligent treatment (including considering their financial situation and the need to refer them to advisory services).
-Record and process complaints, and implement the Bank of Greece’s Code of Ethics.
Monthly updates
Additionally, servicers are obligated to provide through a special digital platform, updated at least monthly, personalized and detailed information to debtors about: amounts owed by borrowers with detailed breakdown, installment frequency, payment history, installment amounts, payment dates, current balance, and debt service account.
The framework for servicer operations provides strict penalties for those violating these obligations, including fines up to €500,000, mandatory correction of violations, and license revocation.
It’s worth noting that servicers manage loans from over 2.6 million debtors, totaling more than €92 billion, of which approximately half belong to securitized portfolios included in the “Hercules” program.
