Bar Association Condemns Debt Management Companies' Abusive Practices

The Plenary of the Presidents of the Bar Associations of Greece condemns the abusive practices of Debt Management Companies (funds) concerning the rights of borrowers. Lawyers declare their readiness to highlight the issue, which leads to the financial ruin of many families.

The Plenary will request a meeting with the Minister of National Economy and Finance to create a legislative framework to prevent these practices and impose sanctions in case of violation.

The issue came into focus after the Supreme Court's decision in favor of borrowers under the Katseli Law regarding the calculation of interest. The Supreme Court judges ruled that the calculation of interest owed for non-performing loans will be based on the monthly installment and not on the total amount.

The Plenary emphasizes the abusive behavior of Debt Management Companies that endanger the property of borrowers and lead to derogatory behavior towards lawyers and debtors.

The creation of a digital platform for settled, paid-off, and other loans is requested, which will be a procedural prerequisite for the initiation of any enforcement procedure by Debt Management Companies.

The Plenary authorizes the coordinating committee to propose targeted actions for Debt Management Companies in case of continued abusive behavior or failure to take measures by the State.

Opposition is also expressed to banks seeking to appoint lawyers of their choice to represent the borrower in pre-notations, which raises issues of conflict of interest.