FAQs about the Code of Conduct under Law 4224/2013
Get answers to frequently asked questions by borrowers and guarantors about the Code of Conduct under Law 4224/2013 and debt settlement
If you have other questions or if you want to settle your debt outside the perimeter of Code Of Contact, follow this link.
What is the aim of the Code of Conduct?
Timely and clear information
The Code of Conduct (Decision No.392/1/31.05.2021 of the Credit and Insurance Committee, GG Β' 2411, as in force) was introduced in accordance with article 1(2) of Law 4224/2013 to ensure timely and clear information to borrowers facing difficulties regarding their inclusion in the debt settlement procedure.
Trust, engagement and information
This Code lays down general principles of conduct and communication, and introduces best practices, procedures and time frames aimed to foster mutual trust, commitment and information exchange between borrowers and credit servicing companies acting on behalf of the lender.
The aim of these principles and practices is for each party to be able to weigh the benefits or consequences of alternative forbearance or resolution and closure solutions for loans in arrears for which the loan agreement has not been terminated, with the ultimate goal of working out the most appropriate solution for the case in question.
In accordance with joint ministerial decision 145947/2023 (GG 5909/Β/10-10-2023) of the Greek Ministers of Economy and Finance, Digital Governance, and Bank of Greece Governor (hereinafter the “joint ministerial decision”), issued per article 39 of Law 4818/2021, on 16 October 2023 the new digital platform for bilateral debt settlement was launched pursuant to the revised Code of Conduct for banks under Law 4224/2013.
According to the new procedure introduced under article 39 of Law 4818/2021 and the respective joint ministerial decision, Step 2 (Collection of financial and other information from the borrower) and Step 4 (Proposal of an appropriate solution) of the Arrears Resolution Procedure pursuant to the Code of Conduct are now carried out exclusively through the digital platform developed by General Secretariat of Information Systems for Public Administration in partnership with the Special Secretariat for Private Debt Management (hereinafter the “Code of Conduct digital platform” or “Platform”). The Code of Conduct digital platform supports the Code of Conduct mechanism, registering the steps of the Arrears Resolution Procedure and their timing.
Exclusively through the above Platform borrowers (individuals and companies – micro enterprises) can settle bilaterally their loans directly with the respective financial institution and credit servicing companies, including doValue Greece, acting on behalf of the beneficiaries, and submit their applications for Step 2 of the Arrears Resolution Procedure. The platform sends the applications to the respective asset management companies or financial and credit institutions. Following the assessment of the applications submitted as described above, credit servicing companies and financial and credit institutions then submit one or more alternative forbearance or resolution and closure solutions in the context of Step 4 of the Arrears Resolution Procedure, which is also carried out exclusively through the Platform.
Access to the Platform is granted through the Public Administration Single Digital Portal (gov.gr-ΕΨΠ). Logging in to the Platform requires authentication of the individual-user with the Taxisnet username and password. (taxisnet). The Platform can be accessed through gov.gr (section Assets and Taxation, subsection Debt Management) using the following link: https://www.gov.gr/ipiresies/periousia-kai-phorologia/diakheirise-opheilon/kodikas-deontologias.
Note that a separate application needs to be submitted per portfolio of each beneficiary managed by doValue Greece.
Rights and obligations
In this context, credit servicing companies acting on behalf of the lender are called on to provide clear information to their borrowers about their rights and obligations, at every step of the procedure to find either a forbearance or a resolution and closure solution for their arrears.
At the same time, borrowers must log into the Code of Conduct digital platform within the specified deadline and submit exclusively through this platform a debt settlement application, filling in the application fields accurately and fully (providing all financial and other information), as well as attaching all the supporting documents required or any additional documents requested by credit servicing companies acting on behalf of the lender, and respond in a spirit of cooperation to their invitations and generally proceed with the necessary actions within the deadlines specified for the Steps on the Platform in order to find a debt settlement solution.
What is required by borrowers falling under the Code of Conduct?
In addition to the obligations resulting from loan contracts, the Code of Conduct requires from the borrowers at least the following:
- Their full and updated contact details.
- Their cooperation with the credit servicing company acting on behalf of the lender to find a mutually acceptable forbearance or resolution and closure solution.
- The timely provision of complete information on their current and future financial situation. The assessment of information will allow us to propose alternative solutions.
Failure of borrowers to comply will result in them being classified as non-cooperating and in lenders exercising their legal rights.
To what extent does the Code of Conduct ensure uniform treatment of all borrowers in arrears?
In accordance with the Code of Conduct, credit servicing companies acting on behalf of the lender shall apply an Arrears Resolution Procedure to ensure the uniform treatment of borrowers in arrears.
Especially for vulnerable social groups, credit servicing companies acting on behalf of the lender must have special policies in place for handling them, incorporating relevant criteria.
Who does the Code of Conduct apply to?
The Code of Conduct applies to all principal debtors, co-debtors and guarantors, including any third parties who have provided a mortgage prenotation / mortgage on their sole residence, who have entered into loan agreements for:
- Personal loans
- Mortgage loans
- Credit cards
- Loans of sole proprietorship companies and self-employed professionals
- Loans of micro enterprises with an annual turnover of up to €1,000,000 on average during the last 3 fiscal years
I am a guarantor in a third party loan. Does the Code of Conduct apply to me?
Every provision of the Code of Conduct under Law 4224/2013 that concerns borrowers also applies to guarantors.
The initiation of the Arrears Resolution Procedure is made known at the same time to borrowers and guarantors.
Which cases are excluded from the Code of Conduct?
The following are excluded from the Code of Conduct:
- Claims arising from agreements that had already been terminated before 01/01/2015.
- Claims on a borrower not exceeding any of the following (a) and (b) limits:
- (a) the amount of one thousand (1,000) euros, in case of claims vis-à-vis individuals, calculated as the sum of the debts owed by the borrower to the institution.
- (b) the amount of five thousand (5,000) euros, in the event of borrowers which are legal entities – micro enterprises, calculated as the sum of the debts owed by the borrower to the institution.
- Claims against legal entities which are not micro enterprises.
Furthermore, the Company is not obliged to initiate or may suspend the Arrears Resolution Procedure:
- When the borrower has submitted an application for out-of-court debt settlement in accordance with Article 8(1) of Law 4738/2020 or the Company has forwarded to the debtor an invitation for out-of-court debt restructuring in accordance with Article 8(2) of Law 4738/2020, and only up until the conclusion of the procedure as ineffectual for whatever reasons.
- When a debt restructuring agreement has already been signed, which is not subject to the consent of the State or a Social Insurance Fund, and the Company or the entity entitled to collect the claim is not a seizing creditor, or results pursuant to Article 5(2) of Law 4738/2020 are produced for the Company or the entity entitled to collect the claim.
- When the borrower or the Company or another creditor has submitted an application for ratification of the borrower’s resolution agreement and, provided it is ratified or entered into in accordance with Article 41 of Law 4738/2020 or Article 103(5) of Law 3588/2007, as specified in Article 265(1a) of Law 4738/2020, and it is binding for the institution.
- When the borrower or the Company or another creditor has submitted an application to declare the borrower bankrupt, and up until the conclusion of the procedure.
- When the borrower has submitted an application for inclusion in the procedure of Law 3588/2007 or Law 3869/2010 or Law 4605/2019 or Law 4469/2017, which is pending or the issuing of a court order or the procedure itself is pending, or when the debtor has been included in the procedure under Article 68 of Law 4307/2014, which is pending.
- When case (e) under Article 7(3) of Law 4738/2020 applies.
- When the borrower/legal entity has been placed under liquidation.
- Claims on a borrower who is subject to judicial enforcement proceedings instituted by third-party creditors. Note that the Company must include the borrower in Step 3 (Assessment of financial data) of the Arrears Resolution Procedure, provided that they submit the relevant application to the Code of Conduct digital platform with the information required to assess their repayment ability, unless one of the above cases (1-8) applies.
Note that the Company must include the borrower in Step 3 (Assessment of financial data) of the Arrears Resolution Procedure, provided that they submit the relevant application to the Code of Conduct digital platform with the information required to assess their repayment ability, unless one of the above cases (1-8) applies.
What is the Arrears Resolution Procedure?
The Arrears Resolution Procedure sets out how to deal with borrowers who have loans in arrears.
The Arrears Resolution Procedure concerns borrowers, individuals and micro enterprises with an annual turnover of up to €1,000,000 on average during the last 3 fiscal years.
The Arrears Resolution Procedure has 5 steps:
- Communication with the borrower
- Collection of financial and other information from the borrower (Step carried out exclusively through the Code of Conduct digital platform)
- Assessment of financial data
- Proposal of appropriate forbearance or resolution and closure solutions (Step carried out exclusively through the Code of Conduct digital platform)
- Appeals Review Process
When does a debt fall under the Arrears Resolution Procedure?
A debt falls under the Arrears Resolution Procedure from the date its payment is first overdue, in whole or in part. In this case the bank will attempt to contact the borrower in an advisory capacity. After 30 calendar days from the date the debt became overdue, the bank sends a written notification to the borrower, informing them about:
- Their inclusion in the ARP
- The details of their debt in arrears
- The need to submit an application on the Code of Conduct digital platform, together with their financial information in order to find a forbearance or resolution and closure solution
The written notification is sent within 15 calendar days from the date the debt became 30 days overdue, unless in the meantime the borrower has paid their debt in full or has reached a settlement with the credit servicing company acting on behalf of the lender.
If the borrower does not agree with the forbearance or resolution and closure solution of the company, what choice do they have?
Within 15 working days from the date the forbearance or resolution and closure solution is presented on the Code of Conduct digital platform, the borrower can notify doValue Greece through the Platform that they consent to the proposed solution or that they reject the proposed solution, or make a specific counter-proposal.
Counter-proposal
If the borrower submits a counter-proposal, the credit servicing company acting on behalf of the lender will assess this proposal and within 1 month from its receipt will either accept it, reject it, in which case the initial proposal remains active, or submit a new proposal to the borrower which is final.
Failure to respond to the proposal of the credit servicing company
In case the borrower does not respond to the proposal of the credit servicing company acting on behalf of the lender (either the initial proposal or the proposal made after the assessment of the borrower’s counter-proposal) within the specified deadline, the credit servicing company is legally obligated to consider the borrower non-cooperating and initiate all legal actions.
Note that even when a borrower is not classified (per the definitions of the Code of Conduct) as non-cooperating, the credit servicing company acting on behalf of the lender (subject to due completion of all the actions required pursuant to the Code of Conduct) may initiate all legal actions to recover the debts.
Can the borrower ask for the intervention of an independent body in the context of the Arrears Resolution Procedure?
You may ask for support and additional information on the application of the Code of Conduct at the offices and borrower information and support centres of the Special Secretariat for Private Debt Management or on the relevant website (http://www.keyd.gov.gr).
When is a borrower classified as non-cooperating?
The credit servicing company acting on behalf of the lender classifies the borrower as non-cooperating when:
- They do not provide complete and updated contact details to the credit servicing company acting on behalf of the lender or to anyone authorised to act on its behalf (e.g. landline or mobile phone number, fax, email, home and work address) and they do not assign a relative or friend to act as procedural representative when they are not available.
- They are not available for contact with the credit servicing company acting on behalf of the lender or anyone authorised to act on its behalf and they do not respond sincerely and clearly to calls and letters of the credit servicing company acting on behalf of the lender or of anyone authorised to act on its behalf, either in person or through their procedural representative, in any appropriate manner, within 15 working days.
- They do not make, in person or through their procedural representative, a full and honest disclosure of information to the credit servicing company acting on behalf of the lender, or to anyone authorised to act on its behalf, regarding their current financial situation, within 15 working days from the date of any change in such situation or within 15 working days from the date when such information is requested by the credit servicing company acting on behalf of the lender or anyone authorised to act on its behalf.
- They do not make, in person or through their procedural representative, a full and honest disclosure of information to the credit servicing company acting on behalf of the lender, or anyone authorised to act on its behalf, which is likely to have a significant impact on their future financial situation, within 15 working days from the date when such information comes to their knowledge, e.g. eligibility for a benefit, prospective ownership of new assets (inheritance, etc.), loss of ownership of assets, notice of lay-off, termination of a rental contract, redemption of insurance policies, profits of any type, etc.
- They do not cooperate with the credit servicing company acting on behalf of the lender, or anyone authorised to act on its behalf, in finding an alternative workout arrangement for their debt in accordance with the Code of Conduct referred to in Law 4224/2013.
Following the joint ministerial decision and the launch of the Platform for carrying out Steps 2 and 4 of the Code of Conduct Arrears Resolution Procedure, borrowers will also be classified as non-cooperating when:
- They do not submit an application on the Code of Conduct digital platform within 15 working days from the date they received the notification of the Company, per the definition of "cooperating borrower".
- In the context of the procedure specified on the Code of Conduct digital platform, they do not fill in the application fields accurately and fully, with complete and updated contact details, they do not assign a relative or friend to act as procedural representative when they are not available, they do not provide all the financial and other information required, they do not make an honest disclosure of information which is likely to have a significant impact on their future financial situation, within 15 working days from the date when such information comes to their knowledge, they do not cooperate in good faith with the Company and they do not respond honestly and clearly to the requests of the Company through the Platform, and they do not attach all the supporting documents required.
If the borrower is classified as non-cooperating and provided they are an individual with their sole residence at risk of being auctioned, they are notified by the credit servicing company acting on behalf of the lender, in writing or in electronic format if so agreed upon, within 15 calendar days from the date of their classification.
In case of micro enterprises, the notification about the borrower being classified as non-cooperating is provided at the time the loan agreement is terminated or earlier.
What are the legal consequences of being classified as a non-cooperating borrower?
The legal consequences of being classified as a non-cooperating borrower are the initiation by the credit servicing company acting on behalf of the lender of legal proceedings to recover its debts, e.g.:
termination, payment order issuance, injunctive measures, seizure of movable or immovable property, including the property that is the borrower's sole residence and receivables, and sale of any collateral provided by guarantors and third parties.
Furthermore, there is a risk of exclusion from favourable legal provisions, as well as from possible benefits the borrower could have enjoyed had they cooperated with the credit servicing company acting on behalf of the lender to find an appropriate solution.
What is the Appeals Review Process if the borrower disagrees with the classification?
The Appeals Review Process is for borrowers who disagree with their classification as non-cooperating and wish to lodge an appeal.
The Appeals Review Process applies to individuals, sole proprietorship companies and self-employed professionals. Each borrower may lodge an appeal only once.
The appeal must be lodged within 15 working days from the date the relevant written notification from the credit servicing company is received.
Note that an appeal may be lodged against the procedure that led to the borrower being classified as non-cooperating. An appeal may be lodged against the content of the proposal or counter-proposal, the negotiation of which is conducted through Step 4 of the Arrears Resolution Procedure.
How to lodge an appeal
For the appeal, the borrower may use the Appeal form, which can be submitted in one of the following ways:
- In hard-copy at any Eurobank branch.
- In hard-copy by registered post at: doValue Greece, 27 Kyprou and Archimidous Streets, 18346 Moschato, Greece (Customer Service and Complaint Management).
- In electronic format (filled in and scanned form) at [email protected].
Appeals review
Appeals are reviewed by an independent committee set up by the credit servicing company to this end.
The borrower is notified of the committee’s final decision in writing, within 2 months from the date the appeal was lodged, during which time the terms of the existing contracts apply.
If your appeal is upheld, doValue Greece will restore the application through the Platform, placing it in the appropriate step of the procedure. From that step and thereafter, the procedure is carried out as described above.
