LOAN REGULATION – OUT-OF-COURT SETTLEMENT

In recent years, there has been a greater willingness on the part of banks to come to an agreement with borrowers in order to
be led to the settlement of their overdue loans out of court.

Initially, banks, through their employees or the companies and law firms that managed their bad debts, i.e. bad loans and credit cards that were not paid, expressed interest in proceeding with a settlement - settlement of small debts that came from consumer loans and cards and mainly for those borrowers who had no property or whose assets were considered of low value or impossible to liquidate. Thus, it was possible to achieve a settlement and haircut of their debt only for someone who lacked property and owed a small amount, while all the rest had no other choice but to accept settlements with the banks that on the one hand did not benefit them and on the other hand could not meet the installment, resulting in either starting it and in a short time ceasing to serve the settlement or not attempting it at all. While other times the banks did not even respond to debtors' requests that might have been favorable to them. In simpler words, a culture and method of out-of-court resolution of such issues had not been created and this was one of the reasons that borrowers resorted to the judicial process of the Katselis Law, which in turn resulted in the accumulation of countless cases in the Magistrates' Courts and their determination many years later. In general, the failure to find out-of-court solutions through direct consultation with creditors led almost everyone to the courts, which had consequences for both sides, on the one hand for borrowers because over time the conditions for inclusion in the Katselis Law became increasingly stricter and consequently many applications were rejected, and on the other hand for banks because they were forced to wait years for the loans to be serviced again given that in most cases the temporary orders that were issued obliged the borrower to pay a small amount. This long wait, in addition to the rest, caused a problem in the management of overdue loans and by extension in the liquidity of banking institutions but also an uncertain plan for the future.

In these circumstances and at the same time as legislative developments, the climate began to change over time and banks became more willing to settle - regulate loans, with more advantageous proposals, which they themselves began to propose to borrowers by phone or by letter. The transfer of many debts to funds or loan management companies also contributed to this, as did the now organized management of bad debts by banks. It is now possible for every borrower, regardless of the nature of their loan (mortgage, consumer, business loan, cards) to achieve advantageous settlement of their debts with a realistic plan and haircut. However, beyond cases where there is only one bank and a small debt where the borrower can more easily and safely proceed with the process on their own, in other cases the assistance of a specialist is deemed necessary in order to avoid unfavorable arrangements. https://www.traditionrolex.com/28

This is because attempting to settle more than one debt, on the one hand, carries risks that are not visible, and on the other hand, with the assistance of a specialist, better arrangements can be achieved both in terms of the monthly installment and the repayment period, the interest rate, and ultimately the haircut.

Our office, with many years of experience in the lending sector and having achieved loan arrangements for many debtors, either judicially through the Katselis Law or out of court, assists borrowers in this process on a daily basis by approaching banks with appropriate loan arrangement requests after we have first come up with a realistic financial plan for repayment adapted to the data and needs of each interested party.

By assigning the case to our office, we undertake the required negotiation with the creditors either by appearing before them or by electronic correspondence or telephone communication with them until the most advantageous agreement for our clients is reached, drafting the necessary documents and negotiating the individual terms that require attention (installment readjustment, first large installment, grace period, interest rates, commercial value of real estate, repayment time, final repayment-discharge, total haircut, etc.).

The organized extrajudicial attempt becomes even more important when there are debts to more than one bank, which is common, as there a comprehensive solution must be achieved, because settling the loans with a single bank can lead to the financial inability to settle the balances and ultimately to a problem for the debtor.

Our office associates are available at any time to advise you on your case by proposing the most favorable solutions for you.