Banks will repossess houses without prior notice to borrowers

Lenders received even more rights in relation to borrowerssince the government, which in its usual manner carried out the amendment shortly before midnight, essentially abolished the minimum restrictions, which were approved just two weeks ago – the European Directive 2021/2167 on debtor information.

Simply put, from now on we will see various companies repossessing houses without even informing the borrowers!

The controversial Article 4 stands among several others – for LARCO, EAB, the University of Thessaly, to support tourism in Rhodes and VAT on soft drinks – in an amendment that was submitted in the multi-bill of the Ministry of Finance “Organizational and procedural provisions for development, interventions for strengthening the just transition of development and other urgent provisions”, which passed only with the votes of New Democracy.

Now all loans securitized before the end of the year will not be subject to the directive EUwhich means that debtors will not even need to be informed.

In particular, the recent servicer law 5072/2023 (art. 41) repealed the provisions of law 4354/2015 on loan and receivable management companies and loan and receivable acquisition companies.

However, the amendment adds the following: “With the exception of the sale and transfer of receivables, as well as contracts for their management, which are concluded before December 30, 2023, are still governed by Law 4354/2015.” If Article 3A of Law 4354/2015 refers to other provisions of Law 4354/2015, this is understood as a reference to the corresponding provisions of Part B of this Law. Paragraph 5 of Article 3A of Law 4354/2015 applies accordingly to the registration of management contracts referred to in Article 14 of this Law.

It is also possible to enter amendments to “clause e) of paragraph 5 of Article 3 of Law 5072/2023 (A’198), excluding from the application of Part B credit management agreements transferred before December 30, 2023, etc.) is formulated as follows: “e) transfer claims under loan agreements transferred before December 30, 2023, as well as under their management agreements.”

This issue was raised from the rostrum of parliament by SYRIZA MP Nikos Pappas and PASOK MP Michalis Katrinis. The first spoke of an outrage that literally abolishes any remnants of logic and the legislator’s protection and concern for borrowers. The second complained that no one dared to stand on the side of the parties and say: “Yes, we support.”

In turn, Deputy Finance Minister Nikos Papathanasis said that this is only a “legal settlement regarding the period between December 5 and December 31.”

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