The Government is preparing to table a new proposal on the regulation of foreclosures, seeking to respond to 26 party-sponsored bills calling for changes to the existing framework. The proposal, drafted by Ministry of Finance technocrats, aims to bolster borrowers’ rights without fundamentally dismantling the current mechanism.
According to reports, the government formula operates on three levels. First, decisions by the Financial Commissioner on complaints about loan overcharges for amounts up to €20,000 will become binding. This threshold is estimated to cover 70% of overcharge cases in loan agreements.
Second, insolvency advisors will enter the process. They will prepare a repayment plan with the borrower’s consent, based on the actual circumstances of each case.
Third — and perhaps most crucially — borrowers will now be able to approach the Commissioner immediately upon receiving a Type I notice, rather than having to wait for the subsequent Type IA notice that effectively opens the door to auction. This gives borrowers valuable additional time.
The proposal is expected to be presented tomorrow, Monday, to members of the parliamentary Finance Committee. However, it remains an open question whether the related bills will be tabled in parliament before its self-dissolution in April, in the midst of an election season.
