Framework of the Code of Conduct under L.4224/2013 and Relevant Materials
What is the Code of Conduct under L.4224/2013 and what is the subject of its provisions?
The Code of Conduct under L.4224/2013 is drawn up by the Bank of Greece (BoG) for the management of Individuals’ and Enterprises’ loans in arrears and non-performing loans. It establishes the general principles as well as the rules of conduct for Banks & borrowers and adopts the best practices, which aim at reinforcing a climate of mutual trust, commitment, and timely exchange of necessary information between the borrower and the Bank, in order for each side to be able to weigh the benefits or the consequences of alternative arrangement or final settlement solutions of loans in arrears. Within the framework, the Arrears Resolution Process (ARP) is introduced for implementation by the Banks, as well as the borrowers facing financial difficulties.
1.Arrears Resolution Process (ARP)
What is the Arrears Resolution Process (ARP)?
It is the procedure stipulated by the Code of Conduct under L.4224/2013, as amended and currently in force, in accordance with the Decision 392/1/31.05.2021 of Credit and Insurance Committee of the Bank of Greece (BoG), for implementation by the Banks, as well as the borrowers facing financial difficulties. The ARP describes the stages, deadlines and the minimum content of information, that should be mutually provided by the Bank and the borrower, in order that the risks and repayment ability of each borrower can be evaluated properly.
To Whom is the Arrears Resolution Process (ARP) addressed to?
- To the borrowers (debtors/guarantors) Individuals / facing financial difficulties and being unable either to meet their debt repayment plan or a change in their financial situation is estimated that will lead directly to their inability to meet their loan obligations
What are the benefits of the Arrears Resolution Process (ARP)?
- The collaboration of Bank – borrower enables a suitable arrangement to be reached in a timely manner, as it is performed within a climate of mutual trust and honest exchange of information.
Which are the implementation stages of the Arrears Resolution Process (ARP)?
- Communication between borrower-Bank
- Submission of borrower’s financial data
- Assessment of borrower’s financial data and overall financial situation
- Submission of suitable arrangement proposal or final settlement solution of the borrower’s debts
- Process of borrower’s appeal assessment
2. Who should you contact – which are the Specific Contact Points?
Be served by phone, from Monday to Friday, 08:00 – 21:00 & Saturday 10:00-18:00 at the Bank’s call center 210 300 99 90or collections@tbibank.gr.
3. How is the “Cooperating Borrower” defined?
Within the framework of the Code of Conduct under L.4224/2013, a borrower is characterized as “Cooperating” when he complies with the following general principles of conduct with regards to his collaboration with the Bank and more particularly when:
Provides complete and updated contact data to the Bank [fixed-line, mobile and fax numbers, email, residence and work address]
Designates a relative or friend as an authorized representative, in case that the borrower is not available
Is available for a contact with the Bank or with anyone acting legitimately on its behalf and responds to the calls and letters with honesty and clarity within fifteen (15) working days
Discloses information regarding his current financial situation or regarding the change of his financial situation to the Bank with sincerity within 15 working days from the day of change in his financial situation or within fifteen (15) working days from the day on which the relevant information will be requested by the Bank or anyone acting legitimately on its behalf
Proceeds, either in person or through his representative, with the complete and sincere disclosure of information to the Bank or anyone acting legitimately on its behalf, and such information will have substantial implications to his future financial situation, within fifteen (15) working days from the day on which he will take cognizance of such information [e.g. fulfillment of requirements for receipt of allowance, appearance of new assets which will be acquired by the borrower (inheritance etc.), loss of assets ownership, dismissal announcements, terminations of leases, redemption of insurance products, profits in any form, etc.] and consents to the investigation of an alternative restructuring proposal with the Bank or anyone acting legitimately on its behalf, as laid down by the Code of Conduct under L. 4224/2013
4. What are the consequences of a non-agreement?
Possibility of denouncing his financing agreement directly
Possibility of commencing the enforced recovery of debt (for instance foreclosure and auction of borrower’s assets)
Additional charges for default interests and court expenses
Danger of remaining liable for any outstanding debts after the completion of assets enforced sale processes
5. What are the consequences of being characterized as “non-cooperating borrower”?
The classification of a borrower as “Non-cooperating”, entails the risk of auctioning the borrower’s primary residence and the exclusion from the benefits a) of L. 3869/2010 as amended and in force on the debt restructuring over-indebted individuals and b) of L. 4354/2015 as amended and in force on the management of non-performing loans, in which, in case of transfer of debts, cannot worsen the substantive and procedural situation, nor unilaterally change the arrangement / final settlement terms to be agreed with the Bank under the Arrears Resolution Process.
6. How are the “reasonable living expenses” defined?
In regard to individuals, the reasonable living expenses are calculated on the basis of the data provided by the Household Budget Survey (HBS), which is conducted annually by the National Statistical Service of Greece (the relevant methodology and information note are available at the URL addresses http://www.hba.gr and http://www.efpolis.gr/el/).
The assessment of the borrowers’ financial situation within the framework of ARP is performed by taking into account the 1st group of expenses, which are considered to be the most basic for the living of a household.
7.Communication with debtors
If you want to settle your debts within the framework set out in the Code of Conduct of Law 4224/2013, you can download the templates you will need to fill in and sign:
Standardized Financial Statement
8.To submit an objection
If you wish to submit an objection under Law 4224/2013, you can download the template that you will need to fill in and sign:
Objection Form in which you submit your objection to TBI.
In the event that the TBI needs to collect special categories of personal data concerning you (e.g. health data, medical history, etc.) yours and / or your dependent family members, for the purpose of
a) the implementation of the procedures of the Code of Conduct of the Bank of Greece (Decision no. 392/1/31.05.2021 of the Credit and Insurance Committee of the Bank of Greece),
b) the evaluation of your debt settlement requests
c) the evaluation of complaints regarding the frequency of your telephone nuisances in order to inform you about the progress of your debt,
you must have previously given your explicit consent to the intended processing, by signing this document.
In any case, you can be informed in detail about the processing of personal data by TBIBank here.
Note: In any case between the Greek and the English version, the Greek version prevails and is applicable. The rendering of the Greek texts in English is done to facilitate the understanding of the content by the user.