Lawyers Demand Legal Framework for Debt Management Companies

The Plenary of the presidents of the Bar Associations of Greece is requesting the establishment of a legal framework to prevent abusive practices by debt management companies. In a statement issued after a meeting in Pyrgos, Ilia, the Plenary stated that it will send letters to the Bank of Greece and the competent ministries.

The letter to the Bank of Greece will request the exercise of its supervisory powers. The letter to the ministries will request a legislative initiative and the establishment of strict administrative sanctions.

The Plenary has repeatedly pointed out abusive behaviors and practices of Debt Management Companies, which, according to the announcement, continue and endanger the rights of vulnerable borrowers. These practices include, among other things, enforcement actions against debtors who have been subject to Law 3896/2010, regulated or repaid loans, and derogatory treatment of lawyers and debtors.

The Plenary also decided to organize a press conference to highlight the problem. If the companies continue the abusive practices, the Bar Associations will be proposed to abstain from issuing payment orders.