Code of Conduct
Bank of Greece, in the context of the establishment of a permanent mechanism for the settlement of unpaid private debt, in pursuance of Law 4224/2013, issued the Code of Conduct for the management of non-performing private debts. The Code was revised in July 2016 (Government Gazette B ‘2376 / 02-08-2016) of the Bank of Greece Credit and Insurance Committee’s decision. (195/1 / 29.7.2016). This Code has been drafted on the basis of best international practice and describes the steps, timelines and minimum information that banks and borrowers must provide each other to properly assess the risks and repayment capacity of each borrower and seek to find more appropriate for this case of settlement solution.
In this context, UCI Greece Loan Management Services applies all the principles of the Code of Conduct to handle borrowers facing financial difficulties for all borrowers who have been late and where applicable to their guarantors.
Frequently asked questions for Code of Conduct
The role of the Code of Conduct
The Code of Conduct of Law 4224/2013, as in force, adopts best practices aimed at enhancing the climate of trust, mutual commitment and exchange between the borrower and the institution of the necessary information, so that each party is able to weigh the benefits or consequences of service alternatives (settlement solutions) or definitive settlement (final settlement solutions) of overdue loans for the ultimate purpose, choosing the most appropriate, case-by-case solution.
For borrowers with indications of delay and no overdue debt what is foreseen?
UCI Greece Loan Management Services undertakes telephone conversations with borrowers of advisory nature, focusing on the investigation of the causes that may lead to delays, so as to enable them to examine their membership in the European Court of Justice in good time, to investigate any alternative solutions. Continuing communication in the next stages of the ECJ is done with the consent of the borrower. Failure to respond at this stage does not entail loss of classification as "collaborative". Also, borrowers are informed from the "Special Point of Communication" of UCI Greece Loan Management Services, with whom they can contact for any information about the ECJ.
Who is covered by the Code of Conduct?
The Code of Conduct applies to natural persons, professionals and micro-enterprises (average annual turnover over the past three years up to € 1,000,000), which shows delay or signs of possible delay.
Who are exempted from applying the Code of Conduct?
The Code of Conduct does not apply to: - Claims on contracts already terminated before January 1, 2015 unless the borrowers on their own initiative come to the Special Point of Communication and apply for membership, submitting the supporting documents required to assess the repayment capacity of their debts. - Claims against a borrower who has filed an application under Law 3869/2010 for which a trial has been set, unless borrowers on their own initiative come to the Special Point of Communication and apply for membership, providing the necessary information for assessing the repayment capacity of the debts of the relevant supporting documents. - Claims against a borrower against whom third-party creditors have initiated court proceedings to secure debts to them or have already been placed in a winding-up regime in accordance with the applicable law.
If the borrower wishes to hold an individual meeting for further clarification regarding the Code of Conduct to who should be addressed?
UCI Greece Loan Management Services has a special contact point for receiving inquiries, providing instructions, receiving statements, documents and supporting documents, providing a more detailed description of its procedures, if it is desirable, and conducting communications with borrowers subject to the Code, specifically designate as "Special Point of Communication", its headquarters in Athens at 5 Angelou Pyrri Street.
What does Delay Procedure mean in the context of the Code of Conduct?
Pursuant to the Code of Conduct (Law 4224/2013 as in force), each Credit Institution is required to establish a detailed Recorded Delay Solving Procedure, with a corresponding classification of loans and borrowers, which is appropriate for the adherence to the Code of Conduct, which is necessarily and in detail recorded Protesting Procedure. The Delay Solving Procedure includes the following five steps: Stage 1: Contact with the Borrower Stage 2 Collection of financial data and other information Stage 3: Financial Data Assessment Step 4: Suggest suitable solutions Stage 5: Protesting Procedure
At what stage is the borrower entitled to lodge a complaint and why?
According to the Code, UCI Greece Loan Management Services has set up a Special Complaints Committee to handle the complaints of its borrowers. In particular, an objection may be made in respect of the procedure which may have led to the designation of a borrower as "non-cooperative". Every borrower is entitled to appeal after categorization as non-cooperative. Complaints may be lodged within 15 calendar days of receipt by the borrower of the written notice of such categorization. The objection together with all accompanying documents (eg legal and financial documents, correspondence with UCI Greece Loan Management Services, information given to UCI Greece Loan Management Services etc.) is admissible only if it is in writing and in a specific form (Standard Proclaiming Form of UCI Greece Loan Management Services) and is sent in the following ways - delivered personally at the Special Contact Point of UCI Greece Loan Management Services(headquarters of the company in Athens and 5 Angelou Pyrri Street) - by post to the following address: UCI Greece Loan Management Services, 5 Angelou Pyrri Street, Athens, Greece
Is the borrower able to make a counter-proposal after receipt of a written proposal for an appropriate settlement solution?
Upon receipt of the written proposal for an appropriate settlement, the borrower has the option, within fifteen (15) working days, to take one of the following actions. 1. Consent In this case the borrower gives his / her consent to the proposed or one of the proposed solutions. 2. Written counterproposal. In this case, the borrower makes a written proposal requesting, if he so wishes, the mediation of a third party of his choice. 3. Written denial In this case the borrower declares in writing that he refuses to consent to any proposal.
When a borrower is considered cooperative?
A borrower is considered "cooperative" when he provides full and updated contact information to the lenders, makes a full and honest disclosure of all relevant information relating to the current and future financial situation and is open to dialogue with the credit institution in order to find an alternative restructuring of debts.
What are the economic and legal implications of non-cooperation?
The consequences of non-cooperation are that the borrower will not be able to influence the outcome of the restructuring process, may be subject to additional charges, and may then initiate legal proceedings against him / her with the risk of confiscation and / or forfeiture of the detained benefit of the credit institution, its assets. In any case, any existing outstanding balance will continue to be chargeable and borne by the borrower and any guarantors. Moreover, in the case of non-cooperation with the credit institution there is the risk of exclusion of the non-cooperative borrower from the special beneficial provisions of the legislation (such as Law 3869/2010 and Law 4354/2015) and any advantages the borrower may have if he co-operates in finding a suitable solution (such as the institution's abstention from legal action or the possible debt relief, etc.)
Should the borrower disagree with what is described as “non-cooperative”? What actions can he take?
Every borrower is entitled to appeal after categorization as non-cooperative. Complaints may be lodged within 15 calendar days of receipt by the borrower of the written notice of such categorization.The objection together with all accompanying documents (eg legal and financial documents, correspondence with UCI Greece Loan Management Services, information given to UCI Greece Loan Management Services etc.) is admissible only if it is in writing and in a specific form (Standard Proclaiming Form of UCI Greece Loan Management Services ) and is sent in the following ways:. - delivered personally at the Special Contact Point of UCI Greece Loan Management Services (headquarters of the company in Athens and 5 Angelou Pyrri Street). - by post to the following address:UCI Hellas Credit and Loan Receivables Servicing Company SA. Committee for Protests. 5 Angelou Pyrri Str. 115 27. Borrowers will obtain the relevant form either from the headquarters of UCI Greece Loan Management Services in Athens, designated as "Special Point of Communication" or from the UCI Greece Loan Management Services website (www.uci.gr).