FOR DEBTORS

FAQs about Securitisations

24 August 2021

The bank that issued your loan may proceed with the securitisation of its claims, including your debt. Get answers about the companies and processes involved in securitisations.

Securitisation process

What is the case with securitisation?

Securitisation is a method used by banks to draw funds from international or domestic capital markets. In the context of securitisation, the bank's claims are transferred by way of sale to a credit servicing company. The acquiring company then issues bonds backed by the claims transferred to it, which are repaid with the amount collected for the transferred claims.

The bank that issued your loan may proceed with the securitisation of its claims, including the claim arising from your loan.

In this case, the claim from your loan is transferred to a special purpose vehicle or SPV.

In turn, this company assigns the management and servicing to a credit servicing company. The credit servicing company contacts you about your debt settlement.

Why securitise my loan claims?

Securitisation is carried out based on internationally accepted quality criteria applied by each bank. If your loan has been securitised, it met these criteria.

Aren't they supposed to ask me before securitising my loan?

No. The law on securitisation does not require debtor consent.

Pursuant to Articles 10 and 14(13) of Law 3156/2003 on “Bond loans, securitisation of claims and claims from real estate”, the bank may securitise its claims, including those concerning you, and transfer them to a special purpose vehicle.

What if I want my loan to be excluded from securitisation?

There are no grounds for exclusion. The law does not require your consent for securitisation.

If the special purpose vehicle has assigned your debt management to doValue Greece, you may contact us in writing: 

Does the securitisation change the terms and conditions of my loan?

No. There is no change to your rights and obligations stemming from your initial loan agreement.

Can my loan be securitised again?

Yes, this is likely to happen. In the context of securitisation, the claims stemming from your agreement may be retransferred:

  • from the special purpose vehicle to the bank
  • from the bank back to a special purpose vehicle

This is not something you should be worried about. There is no change to your rights and obligations stemming from your initial loan agreement.

Special Purpose Vehicle (SPV)

What is a special purpose vehicle?

In the context of securitisation, the claim from your loan is transferred to a special purpose vehicle or SPV.

The exclusive objective of a special purpose vehicle is to acquire claims with a view to securitising them.

Which special purpose vehicle has my loan been transferred to?

If your loan has been transferred in the context of securitisation, you will receive a letter informing you about the special purpose vehicle it has been transferred to.

Can I contact the special purpose vehicle my loan has been transferred to?

No, you do not have this option.

The special purpose vehicle has assigned your debt management to a credit servicing company. You can contact them about any issue concerning the servicing of your loan.

Credit servicing company

What does the credit servicing company do?

The credit servicing company is responsible for managing the claims it has been assigned from the special purpose vehicle, pursuant to the provisions of Law 4354/2015. Its operations mainly consist of monitoring legal and accounting matters, collecting debts, negotiating with the debtors of the claims under management, entering into agreements per Articles 871-872 of the Civil Code or settling such agreements pursuant to the Code of Conduct. Among other things, the credit servicing company:

  • Handles all requests about any information regarding the debt transferred to the special purpose vehicle that has assigned said debt's management to it.
  • Manages the settlement, making sure to propose the best possible settlement, in agreement with the new debt owner, i.e. the special purpose vehicle.

doValue Greece is a licensed credit servicing company. It partners with special purpose vehicles, which assign to it the management of claims transferred to them.

Get answers to FAQs by Debtors about doValue Greece.

How is the credit servicing company connected to the special purpose vehicle?

In the process of securitising claims transferred to a special purpose vehicle, it is necessary for the special purpose vehicle to partner with a credit servicing company, pursuant to Law 4354/2015.

Specifically, the special purpose vehicle assigns to a credit servicing company the management of the loan and credit debt it has acquired.

doValue Greece is a licensed credit servicing company. It partners with special purpose vehicles which assign to it the management of the debt transferred to them.ειδικού σκοπού οι οποίες της αναθέτουν τη διαχείριση των οφειλών που μεταβιβάζονται σε αυτές.

Get answers to FAQs by Debtors about doValue Greece.

Which credit servicing company has been assigned the management of the claim stemming from my loan?

If your loan debt has been transferred in the context of securitisation, you will receive a letter informing you about the credit servicing company that has undertaken its management.

What is the relationship between debtors and credit servicing companies?

If the claim stemming from your loan has been transferred to a special purpose vehicle in the context of securitisation, your debt will be to the special purpose vehicle it has been transferred to and not to the bank that issued the loan.

To this end, communication regarding your debt will be with the credit servicing company representing the special purpose vehicle your loan has been transferred to.

Can I contact the credit servicing company?

Notification of debtors whose claims are transferred due to securitisation

How will I know if the claim stemming from my loan has been transferred due to securitisation?

You will receive a letter informing you about:

  • the securitisation of claims by the bank from a loan portfolio that includes the claim stemming from your loan
  • the special purpose vehicle your debt was transferred to
  • the credit servicing company to which the special purpose vehicle assigned your debt management
  • the payment methods for your debt
  • the processing of your personal data submitted by the bank for the purposes of securitisation, as well as the processing of personal data by the special purpose vehicle after the transfer date.

You will also be informed about how to update your details (for identification and communication).

What if I do not receive such a letter?

Debt settlement after securitisation

Who do I contact for my debt settlement after securitisation?

Can I settle my debts pursuant to the Code of Conduct?

What if I have difficulty paying my loan instalments?