Out of control are the collection agencies This has resulted in a flood of complaints from citizens who are subjected to constant harassment in violation of the legal framework governing such matters.
They are bringing the issue before Parliament 58 SYRIZA members of parliament on the initiative of the Head of the Development and Investment Division Alexis Haritsis.
In their question to the Minister of Development, SYRIZA-PS lawmakers emphasize that although the manner and frequency of contact by collection agencies are defined by the current legal framework, in most cases, unfortunately, these are not being followed resulting in a constant and annoying—at best— nuisance of customers.
In fact, they point out the special arrangements that were in place during the pandemic, which provided for a three-month suspension of installment payments for those eligible for the an 800-euro allowance -upon request-, personalized solutions for borrowers affected by the pandemic and a suspension of communications with borrowers, who can demonstrate a serious and genuine difficulty in meeting their obligations.
The 58 SYRIZA members of parliament are calling on Adonis Georgiadis to explain what steps he intends to take in order to to be checked the ever-increasing number of related complaints and to ensure that collection agencies comply with the current regulatory framework. At the same time, they are asking the Ministry whether it intends to establish a more favorable regulatory framework for debtors who have demonstrably become unable to meet their obligations.
The question regarding collection agencies, in detail
To the Minister of Development and Investment
Subject: «Debt collection agencies should be audited regarding their practices to ensure their compliance with the regulatory framework»
During the economic crisis, citizens’ overdue debts increased significantly, whether they were owed to banks, public utilities, or other private companies. Many organizations choose to outsource the tasks of sending reminders and collecting overdue customer debts to debt collection agencies (known as collection agencies). In many cases in the past, there have been numerous complaints about how these agencies operate and the level of pressure they exert on debtors.
Despite the current regulatory framework, which specifies the manner and frequency of contact by collection agencies, in most cases, unfortunately, these rules are not followed, resulting in constant and, at best, annoying harassment of customers. Especially in the case of banks, these solicitations become more intense and frequent.
In fact, in the midst of the pandemic, special arrangements were put in place regarding the operations of debt collection agencies, in agreement with the Ministries of Development & Investment, the Ministry of Finance, the Hellenic Bank Association, and the Association of Loan and Credit Receivables Management Companies, which provided for a three-month suspension of installment payments for those eligible for the €800 allowance—upon request— tailored solutions for borrowers affected by the pandemic, and a suspension of communications with borrowers who can demonstrate a serious and genuine difficulty in meeting their obligations.
Nevertheless, there are specific, named complaints that allege debt collection practices in violation of the current regulatory framework.
Specifically, according to complaints filed by the debtors’ attorneys, companies that manage bank claims are issuing out-of-court notices to debtors who are currently in an active repayment plan with banking institutions under Law 3689/2010, intimidating them with the threat of missing deadlines due to changes introduced by Law 4745/2020, using false information in the content to create panic among debtors, with the ultimate goal of forcing them to sign contracts under pressure and make payments in violation of their active repayment plan. They prevent clients from seeking legal representation, and, in cases where clients are represented by attorneys, they impose excessive and unreasonable demands regarding the legal validity of their clients’ representation, in violation of the applicable legal framework.
Furthermore, the attorneys representing the debtors allege that the collection agencies have arbitrarily and unlawfully calculated the interest rates set by court rulings, without providing any justification. Finally, despite the daily harassment of debtors by collection agencies—which goes well beyond the frequency stipulated by current legislation— there are significant delays in responding to debtors’ written requests for the issuance of certificates, putting their procedural and substantive rights at risk.
Because the pandemic has, in fact, had adverse economic consequences for the overwhelming majority of our fellow citizens
Because, according to research, the pandemic and its economic consequences have led to an increase in psychological effects
Because the institutional framework specifies a specific way for collection agencies to operate
Because complaints about the way certain debt collection agencies operate are constantly on the rise
Will the Minister responsible say:
1. What steps will it take to investigate the relevant complaints? How will it ensure that collection agencies comply with the current regulatory framework?;
2. Given the adverse economic situation resulting from the effects of the pandemic, does the relevant Ministry intend to establish a more favorable regulatory framework for debtors who can demonstrably no longer meet their obligations?;
